TPG buys German energy firm in €6.7bn deal

The growing significance of sustainability in real estate has been highlighted with the sale of German metering technology specialist Techem to US and Singaporean private equity firms for €6.7bn (£5.5bn). The company specialises in digital technologies designed to enhance sustainability in the built environment. As well as smart metering, it also provides demineralisation systems designed to make water in heating systems more efficient. The main investor in the deal is US private equity group TPG, with a minority stake being taken by Singaporean wealth fund GIC. TPG is conducting the deal through its dedicated climate investment arm, known as TPG Rise Climate. The vendors are private equity firms Partners Group and CDPQ, as well as Ontario Teachers’ Pension Plan. The deal is expected to complete in the first half of 2025, subject to regulatory approval. It is one of the largest buyouts between private equity groups of the year so far in Europe and reflects the heightened importance being placed on sustainability in the built environment. Techem chief executive Matthias Hartmann said: “With TPG and GIC we are gaining strong new partners with the digitisation and platform expertise needed to help us make significant progress in implementing our corporate strategy. “Together, we want to further expand and advance our position as a leading platform for digitising and decarbonising the building sector across Europe and beyond.” There are currently around 60m Techem devices in use across 18 countries. Its networked digital metering is designed to enable more efficient energy performance. TPG Rise Climate managing partner Ed Beckley said: “Techem’s technology, transparent consumption statistics and streamlined solutions for tenants, managers and asset owners alike are essential solutions for lowering costs and improving the environmental impact of real estate assets across Europe. “There is a tremendous opportunity to reduce energy consumption in built environments by enhancing efficiency and better managing overall demand. We’re looking forward to supporting the Techem team in leading and accelerating real estate emissions reductions at scale.” Image from Techem