Swedish private equity company EQT has agreed to sell German technical facility management services provider Apleona Group to French private equity firm PAI Partners for around €1.6 billion.

EQT is selling the business through its EQT VII fund.

According to the Swedish private equity company, some of the shares in the proceeds will be shared with German industrial services conglomerate Bilfinger, which will result in expected proceeds of around €450-470 million to the latter’s preferred participation note.

Apleona’s technical facility management services are said to be complemented by infrastructural and commercial facility management under an integrated offering.

EQT acquired it in 2016 via a carve-out from Bilfinger.

Under EQT ownership, Apleona is said to have become a pure-play facility management provider with a top position in Germany, Austria, and Switzerland. This has been partly due to the sale of its cyclical, low margin construction segment three years ago and its British real estate advisory business GVA two years ago, said EQT.

Apleona has also seen considerable investments into a digitalized operating platform and commercial excellence for offering high-value integrated facility management services to its key blue-chip customer base, claimed EQT.

Currently, Apleona has a workforce of over 20,000 employees, and manages tens of thousands of buildings and offices in 30 plus European countries.

Jochen Keysberg – CEO of Apleona said: “We have very much enjoyed the collaborative journey under EQT ownership and are thrilled to see how Apleona has benefited from EQT’s expertise and the investments made since the carve-out.

“We have an advantage with digital products and the automation and digitalization of operational processes and an unrivalled track record of sustainability initiatives supporting our client’s efforts.

“We are very excited to take this next step of our journey together with PAI and enter a new phase of growth both through M&A and also our enhanced organic growth potential.”

The deal, which is subject to approvals and customary conditions, is likely to be wrapped up early Q2 2021.

Ralph Heuwing – Partner at PAI Partners said: “We are excited to invest in Apleona, an excellent fit with PAI’s investment philosophy of acquiring industry leaders and capitalizing on attractive market fundamentals as well as tangible consolidation opportunities.

“The platform prepared by EQT and CEO Jochen Keysberg has laid the foundation for efficiency, digital excellence and continued growth. We look forward to a successful journey together.”

  Apleona Group, EQT, Germany, Jochen Keysberg, PAI Partners, Ralph Heuwing