Techem Owners Weigh Sale, IPO of €8 Billion Metering Firm

A consortium led by Partners Group is exploring a sale or initial public offering of Germany’s Techem GmbH, in a deal that could value the metering firm at as much as €8 billion ($8.6 billion) including debt, people familiar with the matter said.

(Bloomberg) — A consortium led by Partners Group is exploring a sale or initial public offering of Germany’s Techem GmbH, in a deal that could value the metering firm at as much as €8 billion ($8.6 billion) including debt, people familiar with the matter said.

Techem’s owners have invited advisers to pitch for a role on the potential transaction, the people said, asking not to be identified because the information is private. A process could kick off later this year, according to the people. 

Partners Group partnered with Caisse de Depot et Placement du Quebec and Ontario Teachers’ Pension Plan, as well as Techem’s management team, to acquire the company for €4.6 billion in 2018. 

Any transaction would be a further sign of improving prospects for German deals after an anemic year 2022 that saw dwindling volumes for IPOs and M&A. Earlier this year, US industrial firm Carrier Global Corp. agreed to buy German heat pump maker Viessmann Climate Solutions in a €12 billion deal, while buyout firm Silver Lake has made a €2.4 billion bid for Frankfurt-listed Software AG.

Deliberations over Techem are ongoing, and there’s no certainty they will lead to a transaction, the people said. A representative for Techem referred queries to the company’s owners. Spokespeople for Partners Group, CDPQ and Ontario Teachers declined to comment.

Techem, based on the outskirts of Frankfurt, was founded in 1952. The company makes equipment to measure consumption of water and electricity and monitor heating and cooling. It provides its services to real estate operators and private home owners in more than 20 countries.

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