Fan and drive specialist EBM-Papst is set to be acquired by U.S.-based Madison Air in a deal valued at nearly €4.8 billion, subject to regulatory approvals. The transaction is expected to be completed by the end of 2026 and would give EBM-Papst greater access to the North American market, while expanding Madison Air’s presence in Europe and Asia.
Acquisition Expands North American Focus
The family-owned EBM-Papst, headquartered in Mulfingen, Baden-Württemberg, supplies ventilation, fan and drive technologies across several industrial markets. Reuters valued the transaction at $5.4 billion, while Handelsblatt reported a net sale price of €4.8 billion.
EBM-Papst expects the acquisition to strengthen its position in the United States, where demand for cooling systems is increasing alongside data center and artificial intelligence infrastructure.
The company’s U.S. revenue increased by 25% in the most recent financial year to €424 million. EBM-Papst also plans to double production capacity at its plant in Telford, Tennessee.
Madison Air currently generates about 95% of its revenue in North America. The company produces ventilation systems for data centers and cleanrooms and is already an EBM-Papst customer.
EBM-Papst Supplies Cooling Technology for EV Charging
EBM-Papst also has an established position in electric mobility through thermal-management components used in high-power charging infrastructure.
Its portfolio includes compact fans and pump drives designed for cooling systems used by high-powered charging stations. Such equipment is used to manage heat generated during high-power charging.
The future direction of EBM-Papst’s electromobility business under Madison Air ownership remains unclear. The acquisition comes as the company places greater emphasis on data centers, heat pumps, refrigeration and air-conditioning technology, while reducing parts of its business serving passenger car manufacturers and household appliance producers.
Company Targets €3.4 Billion Revenue by 2029
EBM-Papst employs more than 13,000 people worldwide, including around 5,800 in Germany. Revenue increased by 6% to approximately €2.24 billion in the financial year ending in March.
The company has set a revenue target of €3.4 billion by 2029. CEO Klaus Geißdörfer said the target could be reached earlier with support from Madison Air.
EBM-Papst’s headquarters will remain in Mulfingen following the acquisition.
Transaction Requires Regulatory Approval
The acquisition will be financed through a combination of equity and debt and remains subject to regulatory approval.
Documents filed with the U.S. Securities and Exchange Commission state that the previous owners would receive €250 million in compensation if the transaction fails to close.
The proposed takeover is another major acquisition of a German climate-technology company by a U.S. group. In early 2024, Viessmann sold its climate and heat pump business to Carrier Global for around €12 billion.