May 16, 2023
Distech & Chill:
Acuity Brands Closes KE2 Therm Acquisition
Above: Martin Villeneuve, President, Distech Controls with Patrick Holdmeyer, President of KE2 Therm
Company's Intelligent Spaces Group finalizes a cool collaboration
Acuity Brands has officially sealed the deal on its acquisition of KE2 Therm Solutions, Inc., completing a transaction that was initially announced on April 14. In a company announcement, Acuity stated that it is committed to a smooth integration process with minimal disruptions to customers, business partners, and associates.
KE2 Therm is a Missouri-based manufacturer that specializes in electronic controllers for refrigeration and air conditioning applications. The acquisition will see KE2 Therm integrated into Acuity Brands' Intelligent Spaces Group, operating under the Distech Controls brand. While the terms of the deal remain undisclosed, this strategic acquisition aims to bolster Distech's solutions portfolio in the Heating Ventilation Air Conditioning and Refrigeration (HVACR) space.
Although KE2 Therm falls outside the traditional scope of Acuity Brands' strategic acquisitions in the lighting and lighting controls space, it aligns well with Distech Controls' existing presence in HVACR. KE2 Therm's expertise lies in developing intelligent refrigeration control solutions that improve system efficiency and reduce operational costs. KE2 Therm reported having 24 employees in 2020.
Acuity Brands and the HVACR Market
It's worth noting that Acuity Brands’ Intelligent Spaces Group is not a newcomer to the HVACR market. Distech Controls has been offering smart thermostats and a range of BACnet and LONWORKS controllers that integrate with Building Automation Systems (BAS) for managing large-scale buildings. Their participation in February’s AHR Expo, a prominent trade show in the HVACR industry, demonstrates their long-standing commitment to the HVACR space. At the event, Distech Controls' 20’ x 30’ booth attracted significant attention and showcased their dedication to innovation.
The acquisition of KE2 Therm further solidifies Distech Controls' position within Acuity Brands' Intelligent Spaces Group, which also includes Atrius. In 2022, this business unit generated $216 million in revenue, marking a 14% increase from the previous year. The transaction is expected to be completed in the spring of 2023, allowing KE2 Therm to seamlessly integrate into Distech Controls within the Intelligent Spaces Group segment of Acuity Brands.
This move by Acuity Brands highlights their commitment to expanding the reach of their Intelligent Spaces Group. By leveraging KE2 Therm's expertise, Distech Controls is poised to offer even more comprehensive solutions in the HVACR space, strengthening their position in intelligent building technologies.
