US private equity firm TPG said Tuesday it planned to buy German metering company Techem for 6.7 billion euros ($7.4 billion), highlighting the growing interest in energy efficiency solutions for the buildings sector.
TPG said it had signed an agreement to acquire Techem through its TPG Rise Climate fund, with Singapore sovereign wealth fund GIC acting as a minority investor.
The purchase price will be paid in two installments, the statement said, one at the close of the deal and the remainder in July 2027.
The transaction is expected to close in the first half of 2025, subject to regulatory approval.
Founded in 1952, Techem makes meters to keep track of energy and water consumption in buildings and offers related services in smart energy solutions.
Techem said its services “help to advance the long-term decarbonization of the real estate sector, which still drives approximately 40 percent of global CO2 emissions”.
It has around 4,300 employees and is active in 18 countries.
“There is a tremendous opportunity to reduce energy consumption in built environments by enhancing efficiency and better-managing overall demand,” Ed Beckley, a London-based managing partner of TPG Rise Climate, said in the statement.
“We’re looking forward to supporting the Techem team in leading and accelerating real estate emissions reductions at scale.”
The Techem transaction is the largest to date for the TPG Rise Climate fund.
© 2024 AFP
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US fund to buy German energy firm Techem for 6.7 bn euros (2024, October 1)
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