H.I.G. Capital Signs Definitive Agreement to Acquire the Thermal Commercial Vehicles Division from Valeo

H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $60 billion of capital under management, is pleased to announce that one of its affiliates has signed a definitive agreement to carve out the Thermal Commercial Vehicles division (the “Company”) from Valeo (Ticker: FR: PAR on the Paris Stock Exchange). The Company will operate under the name “Spheros” following closing. The transaction is expected to close this year and is subject to customary regulatory approvals.

Headquartered in Germany, the Company is the leading global developer and manufacturer of thermal management solutions for a wide range of passenger buses and coaches (both conventional and electric), as well as refrigerated transportation fleets. The Company offers a comprehensive product portfolio, including air conditioning systems, heaters, coolant pumps, and other related hardware.

Tobias Borkowski, Managing Director on the H.I.G. Europe Private Equity team, commented: “We have been impressed by Spheros’ track record of continuous growth, and we see significant potential in leveraging its worldwide leadership position to support a transition towards clean and sustainable mobility solutions. We believe H.I.G. is the ideal partner to support the management team in the next phase of its growth.”

Markus Noe-Nordberg, Managing Director and Head of the H.I.G. Europe Middle Market Private Equity team, said: “We are delighted to have the opportunity to acquire Spheros. H.I.G.’s success investing in corporate carve-outs will be instrumental in helping the Company’s management team accelerate the expansion of the business.”

Mark Sondermann, newly appointed CEO of Spheros, added: “Our entire management team is thrilled to welcome H.I.G. as our new partner. I am very excited to work with the team at H.I.G. to capitalize on the significant potential we have on a global landscape. We are well positioned to continue pushing forward with plans for growth, capitalize on our leading position in the conventional and electric bus segment, and explore considerable opportunities in adjacent market segments.”

About Spheros

Established in 1956, Spheros is a global market leader in the development and manufacture of air conditioning systems, heaters, coolant pumps, and other related hardware. The Company offers tailored solutions for all passenger buses and coaches (both conventional and electric), as well as refrigerated transportation fleets. Spheros develops sustainable solutions that drive the electrification of the global bus fleet, reducing emissions and fuel consumption. The Company has a global presence with operations in Europe, North America, South America, and Asia, serving both OEMs and the aftermarket.

About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm with $60 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:

• H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
• H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
• H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
• H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm’s current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.

*Based on total capital raised by H.I.G. Capital and affiliates.

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Contact information

Tobias Borkowski
Managing Director
tborkowski@hig.com

Markus Noe-Nordberg
Managing Director
mnordberg@hig.com

H.I.G. Capital
10 Grosvenor Street
London W1K 4QB
United Kingdom
P +44 (0) 207 318 5700
hig.com