Basx

**BasX Solutions: A Strategic Acquisition by AAON** 1. **Acquisition Details**: - AAON, a leading HVAC specialist, announced the acquisition of BasX Solutions for up to $202 million. - The acquisition was completed on December 10, 2021. - As part of the deal, AAON signed a real estate purchase agreement with BasX Properties, LLC, to acquire the real property and improvements for an additional $22 million. 2. **Financial Implications**: - BasX Solutions, headquartered in Redmond, Oregon, is a manufacturer of high-efficiency HVAC systems and custom air handling units. - The company specializes in data center cooling solutions, clean room systems, and mission-critical HVAC applications. - BasX Solutions has 90 employees and has a strong presence in the high-growth data center and clean room markets. - The acquisition is expected to enhance AAON's exposure to attractive end-markets and provide immediate access to the rapidly growing hyperscale data center market. 3. **Strategic Rationale**: - AAON anticipates revenue and cost synergies from the acquisition, with BasX Solutions's robust backlog supporting future growth. - The acquisition aligns with AAON's historical focus on energy-efficient solutions, complementing its existing product portfolio with BasX's custom HVAC solutions. 4. **Market Positioning**: - BasX Solutions has a strong market position in the high-efficiency data center cooling sector, with a five-year sales CAGR of 45%. - The acquisition is expected to enhance AAON's market share in the data center and clean room markets, leveraging BasX's engineering expertise and manufacturing efficiency. 5. **Operational Integration**: - AAON plans to integrate BasX's operations with its own, aiming to leverage the combined manufacturing capacity and financial strength to drive accelerated market share gains. - The integration is expected to result in material cost synergies, improving the combined entity's profitability and operational efficiency. This acquisition is a strategic move by AAON to expand its portfolio and market reach, particularly in the high-growth data center and clean room markets. BasX Solutions's strong market position and experienced management team align with AAON's goals of diversification and growth in energy-efficient solutions.