climatec

TRANSACTION OVERVIEW

  • On January 14, 2015, Robert Bosch North America (“Bosch”) acquired Climatec, LLC (“Climatec”) from Pegasus Capital Advisors (“Pegasus”).
  • Climatec will be integrated into and operate as a subsidiary of Bosch Energy and Building Solutions (“BEBS”).

BOSCH OVERVIEW

  • Bosch is a leading global supplier of technology and services with 281,000 employees generating over $60B in revenue.
  • Bosch is headquartered in Germany and has more than 360 subsidiaries and regional companies in 50+ countries.
  • The acquisition strengthens Bosch’s presence in North America and allows Bosch to provide a complete portfolio of networked and efficient energy, building automation and security solutions to public, commercial and industrial customers in the U.S.
  • The addition of the Climatec portfolio to Bosch’s energy and security capabilities will position the BEBS business to achieve sales of $10B by 2020.

CLIMATEC OVERVIEW

  • Climatec is a leading single-source integrator of critical building systems and a provider of energy efficiency, building automation, security and life-safety solutions in North America with 670 associates across 12 offices in Arizona, California, Nevada and Texas.
  • Climatec generated sales of $190M in 2014.
  • Customers include building owners across a broad range of market segments, including education, health care, office, hospitality, industrials, and federal, state and local government.
  • Climatec will be able to leverage Bosch’s global platform, world class engineering and R&D expertise and deep knowledge in HVAC and distributed generation systems to accelerate its growth.

GCA’S ROLE

  • GCA conducted an extensive initial screening to find attractive acquisition candidates for Bosch in the North American energy services sector.
  • After narrowing down a list of over 600 companies, GCA conducted preliminary discussions with select candidates and identified Climatec as the most attractive partner that would help expand Bosch’s reach in North America.
  • GCA served as the exclusive financial advisor to Bosch and was closely involved in all aspects of the transaction, including structuring, valuation, due diligence and negotiations.

WHAT THE TRANSACTION MEANS FOR THE ENERGY SERVICES SECTOR

  • This transaction highlights the increasing preference of strategic buyers for integrated, next generation building management and energy services and solutions.
  • Direct building controls capabilities are increasingly viewed as essential rather than optional when buyers evaluate their willingness to pay strategic premiums for platform acquisitions.