US Madison Air buys German ventilation specialist emb-papst

US company Madison Air Solutions has bought German family-owned ventilation company ebm-pabst based in the German state of Baden-Württemberg for $5.4 billion, the two companies announced on Monday.

Ebm-papst chief executive Klaus Geissdörfer said the group's potential for further development had not yet been fully tapped and that Madison was a partner that understood exactly what ebm-papst stood for and what it needed to expand its market leadership.

"We will also benefit from better access to the US market," he added. The deal, which requires regulatory approval, is expected to close at the end of the year.

Geissdörfer had recently expanded the company's data centre business in particular.

He noted that Madison Air had little presence in Europe and Asia. "Ebm-papst is well positioned here. That's why we complement each other very well," Geissdörfer said.

Madison Air specializes in ventilation, filtration and cooling systems. It employs 9,000 people worldwide and recently generated revenue of $3.5 billion.

Madison Air chief executive Jill Wyant said: "As a longstanding ebm-papst customer, we have a deep appreciation for its integrated airflow technology and custom engineering expertise."

She added: "Together, we are confident we can accelerate growth, enhance performance and create significant long-term value for shareholders."

Madison Air employs more than 13,000 people worldwide, including 5,800 in Germany.

In the most recent financial year, which ended in March, ebm-papst increased its revenue by 6% to around €2.24 billion ($2.6 billion). Ebm-papst does not disclose profit figures.

Mulfingen in Baden-Württemberg will remain ebm-papst's headquarters following the sale.