Utility 4.0 – Heat as a Service

Brookfield, Canada's largest infrastructure fund acquires majority stake in Germany's tech-enabled heating installer Thermondo

The Background Thermondo is the pioneer of digitization in the heating market. Unique software developed in-house ensures efficient planning, processing, and execution of heating system retrofits, including financing and subsidy-related processes. The retrofits are carried out by permanently employed craftsmen. In recent years Thermondo has been one of the fastest growing companies in Germany and today employs over 440 people nationwide. 

The Deal Canada's largest infrastructure fund Brookfield Infrastructure Partners is acquiring a majority stake in Germany's largest heating installer Thermondo. Thermondo plans to use the new growth capital to grow faster and to enable more customers to use CO2-neutral heating technologies. Co-founder and Managing Director Philipp Pausder remains as a shareholder and in his position at Thermondo and wants to continue the company's successful growth path. “We have entered into the most important decade in the fight against climate change just a few days ago. With German households using more than two thirds of their final energy consumption to heat rooms, we need to see more CO2 reduction in the heating market in order to achieve the CO2 reduction targets for 2030. As Germany's market leader we are committed to this heating transition and are now igniting the next level: more green jobs, greener products and thus more CO2 savings."

Mirko Heide, Managing Director of IEG - Investment Banking Group: "With Brookfield joining as a strong new partner, Thermondo is now optimally positioned to actively drive the energy transition in Europe. This transaction will permanently change the energy landscape in Europe, and we are very proud to make our contribution."

IEG - Investment Banking Group has acted as exclusive financial advisor to Thermondo and its shareholders.

The Partners Thermondo, based in Berlin, was launched in 2013 by Philipp Pausder, Florian Tetzlaff and Kristofer Fichtner. The company is the market leader in Germany with over 20,000 heating system retrofits in one and two-family houses and over 440 employees nationwide, of which over half are permanently employed craftsmen. Thermondo has set itself the goal of actively promoting the energy transition through customer-oriented, innovative, and environmentally friendly solutions. Thermondo’s investors include Brookfield Infrastructure Partners, E.ON, HV Capital, Vorwerk, Rocket Internet and 10x. Thermondo is a pioneer in the field of tailor-made energy solutions and has received numerous awards in recent years: Thermondo has been listed three times in a row by the Cleantech Group as one of the 100 most influential cleantech companies worldwide. The Financial Times and statista ranked the company in second place among the growth champions in Europe (2013-2016). Co-founder and Managing Director Philipp Pausder was named “Entrepreneur of The Year 2017” by E&Y. As one of the world's largest infrastructure investors, Brookfield Infrastructure Partners owns and operates relevant and diverse global infrastructure networks, for example in the areas of energy and water. Brookfield's portfolio also includes Enercare, one of North America's largest energy services companies. 

The Perspective “We founded Thermondo in 2013 because we recognized that the energy transition can only happen with the heating transition. Today, seven years later, we have over 20,000 customers with whom we have already reduced over 13,000 tons of CO2. Our platform scales and it significantly lowers the barriers to low-carbon heating for homeowners”, says Philipp Pausder, Co-Founder and Managing Director of Thermondo. “We are very happy to have gained an experienced and strong partner in Brookfield Infrastructure Partners. Together we will continue our dynamic growth path, bringing green products such as heat pumps to market faster, and further expand our popular rental offer." Louis Socha, Senior Vice President Investments at Brookfield Infrastructure Partners: “The Thermondo team has managed to digitize highly complex processes and to inspire homeowners in Germany to embrace this revolutionary approach. The energy landscape is facing a fundamental change and with its digital processes and innovative products, Thermondo has great potential to become one of the leading energy companies in Europe. We are extremely happy to support the company’s future growth as majority shareholder."