Targeted M&A, operational integration and a reputation for trust have powered Aspen’s transformation into a global HVAC leader.
For over 30 years, Aspen Pumps Group has been making life easier for air conditioning and refrigeration engineers by providing the quality products and accessories that they need to install and maintain AC/R equipment. When Inflexion first backed Aspen nearly 20 years ago, it helped the ambitious business to triple EBITDA as it doubled international sales, expanded distribution to 100 countries, and led the market for product innovation. The wildly successful partnership between 2007 and 2015 delivered one of Inflexion’s best investment returns.
In 2020, both sides came back for more. Since then, Aspen has tripled EBITDA again, through organic growth and M&A, including a transformational purchase in the US to act as its platform for that market.
And it’s still going strong. Today the business strives to generate 20% growth annually, and has exceeded that for the last nine years – with half of this achieved through M&A.
In five short years since Inflexion’s re-investment, Aspen has completed 18 acquisitions. Its acquisition cadence is possible because of its relationship approach. “We’ve built up a network over many years,” explains Andrew Trusdale, M&A Director at Aspen. “Our senior team – including founders of acquired firms – constantly identify potential partners. Because we know the owners and their goals, we often are front of mind when they consider a sale.”
This means most of Aspen’s deals are off-market – including its largest acquisition, Malco Tools in the US, and the most recent two: Aurü in Germany and Veto Pro Pac in the US.
Strategic success
Key to Aspen’s successful strategy is the unique structure of the industry it operates in, with equipment, particularly within air conditioning, largely being manufactured to one standard. This creates an immense opportunity for specialist components makers to scale rapidly.
This repeatable model of acquiring category leaders with international potential allows Aspen to extend their global reach while respecting local expertise. Its careful mix of organic growth and M&A means the company now operates across Europe, the US and increasingly Asia Pacific, with regional teams and CEOs aligned under a global umbrella.
Another strategy Aspen is focused on is boosting agility through vertical integration, with recent acquisitions supporting this. “Only 20% of our products used to be made in-house,” notes Adrian Thompson, CEO of Aspen since Inflexion appointed him during their first investment in 2007. “Now, we’re aiming to increase this to 70%,” he explains, adding that they should reach 50% by year end.
An example is a small metalwork firm in Malaysia (LNE Network Systems) that Aspen has transformed into a state-of-the-art 50,000 sq ft facility with advanced PCB production making a range of Aspen’s pumps and isolators. This control over production not only de-risks the supply chain – particularly crucial amid global disruption – but also enables Aspen to maintain quality, manage costs, and improve time-to-market.
Purchasing with purpose
What makes Aspen’s approach different is not just the pace of acquisitions, but the purpose behind them, with Adrian stressing that it’s about quality, not quantity. He explains: “Each acquisition is about three things: expanding our product range by taking brands international, enhancing our distribution and warehouse infrastructure to bring Aspen products to new markets and gain proximity to customers, and integrating strong local sales teams with the wider Aspen Group.”
The firm is proud of the growth mindset culture embedded throughout its team, according to Andrew. “It means we get ideas and connections from mid-management and from the businesses we acquire.”
The 2024 acquisition of Malco was a pivotal moment in Aspen’s global growth. Aspen already had five strong brands in the US and were looking for the right platform to bring all these together. Adrian and Andrew only met the Malco team in January 2024, but realising the great potential, they accelerated the relationship building and closed by year-end in an off-market process.
“Malco gave us a strong platform, bringing the brand, the team, and the infrastructure. We reversed our other businesses into them – and now they lead the market,” Adrian explains.
Trusted relationships
“It’s not just about the money,” says Adrian, stressing the cruciality of trust when dealing with founder-led and family-owned businesses.
Every deal is different, situations can be complex, so we are very flexible. We understand what is important to the owners, be that their legacy, their people, their brand. And importantly, we always deliver on what we say.
Further to go
Inflexion has been instrumental in supporting Aspen’s rapid growth, offering not just capital but also operational and strategic expertise. “They’re a proper partner,” says Andrew. “They’ve rolled up their sleeves when needed – even embedding people here during key deals – but never imposed. It’s a shared mission.”
That support has included help from Inflexion’s international experts – particularly valuable during complex cross-border acquisitions – as well as backing for team expansion and regional leadership hires.
With Europe well established and the US platform consolidating and maturing, Aspen’s sights are set on Asia Pacific. “We’ve split the business into three global regions and are investing in a strong Asia Pacific team,” says Adrian. “It’s our next frontier.”
All Inflexion portfolio companies, regardless of size or ownership stake, have full access to our dedicated value acceleration resources covering M&A, digital enhancement (including data, AI, technology, cybersecurity and digital marketing), international expansion, sustainability, commercial strategy and talent management.
Over 60% of Inflexion’s portfolio have grown through M&A, with 560 acquisitions done since inception – over 140 of which have been international.
