Partners Group to lead consortium including CDPQ and Ontario Teachers' in acquisition of Techem, a global market leader in energy sub-metering services
Partners Group, the global private markets investment manager, is leading a consortium of investors in the acquisition of Techem GmbH ("Techem" or "the Company"), a global market leader in the provision of heat and water sub-metering services. Partners Group, which will invest on behalf of its private equity and infrastructure clients, will be joined in the acquisition by Caisse de dépôt et placement du Québec ("CDPQ") and Ontario Teachers' Pension Plan ("Ontario Teachers'") as well as Techem's management team. The consortium is acquiring Techem from Macquarie European Infrastructure Fund 2, which acquired 100% of the Company in 2008. The transaction, which is expected to close in the third quarter of 2018, values Techem at an enterprise value of EUR 4.6 billion.
Founded in 1952 and headquartered in Eschborn, Germany, Techem caters to a global client base of real estate operators and private home owners from its 150 branches in more than 20 countries. Its principal Energy Services business provides services and devices for the metering and billing of energy and water, plus device sales, hire and maintenance. In addition, its Energy Contracting business delivers heat, cooling, flow energy and light, as well as the planning, set-up, financing and operation of energy systems and energy monitoring and controlling services. Techem is the market leader in Germany, the largest sub-metering market in the world, as well as in an additional 13 European markets. Techem solutions today account for 6.9 million tons of emission savings in CO2 per year, thus contributing to the ambitious global climate protection objectives. In the 2016/17 financial year, Techem's 3,640 employees serviced 11 million apartments worldwide, recording sales of EUR 782.7 million.
Following the close of the acquisition, Partners Group together with CDPQ and Ontario Teachers' will work with Techem's management team, led by Frank Hyldmar, to support the development of the Company in existing markets and expand the Company’s presence geographically. One value creation initiative will focus on the introduction of new technologies to Techem's strong, existing platform and installed base to enhance the customer experience. There will also be a continued focus on customer services and quality excellence programs as the Company grows.
Frank Hyldmar, CEO of Techem, comments: "A decade after delisting from the Frankfurt Stock Exchange, Techem can show a solid track record of growth. However, even with our market-leading position today, we believe there is plenty of future growth potential for our Company and look forward to working with Partners Group, an experienced private equity and infrastructure investor, as well as its strategic partners CDPQ and Ontario Teachers', to realize our ambitions and deliver an exceptional service to our customers around the world."
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Jürgen Diegruber, Partner, Private Equity Europe, Partners Group, adds: "Techem is a market leader in a highly-regulated industry with high barriers to entry and strong tailwinds. With increasing global awareness of energy usage, Techem's products and services are a key element of the fight against energy waste, enabling heating and energy supplies to be managed in a more precise and sustainable manner. We look forward to working with Frank Hyldmar and his talented team, as well as with our partners CDPQ and Ontario Teachers', to expand Techem's market-leading position."
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Stéphane Etroy, Executive Vice-President and Head of Private Equity, CDPQ, says: "Energy efficiency, which is at the center of Techem's offering, is key to building a sustainable future. Given CDPQ's desire to support the transition to a low-carbon economy, investing in Techem is a very attractive opportunity for us. Techem’s business model positions it to benefit from growing urbanization and demand for housing energy efficiency, over the long term. We are confident that together with Techem's solid management team, Partners Group, and Ontario Teachers', the company will continue on its path of success."
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Jo Taylor, Senior Managing Director International, Ontario Teachers', comments: "Techem is a well-positioned business that looks set for continued domestic and international growth. It serves the growing, global need for energy conservation and empowers users in multi-occupancy properties to have greater control over their own energy consumption by providing accurate billing. Ontario Teachers' has a strong track record in the energy and infrastructure sectors, as well as significant experience in the sub-metering space and we are delighted to partner with Techem’s innovative management team and with Partners Group and CDPQ."
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About Partners Group
Partners Group is a global private markets investment management firm with over EUR 62 billion (USD 74 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 1,000 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees. www.partnersgroup.com
About Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2017, it held $298.5 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
About Ontario Teachers'
The Ontario Teachers' Pension Plan (Ontario Teachers') is Canada's largest single-profession pension plan, with $189.5 billion in net assets at December 31, 2017. It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an average annualized rate of return of 9.9% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 323,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
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