Driving growth by refocusing strategy in changing markets

Christ & Wirth, headquartered in the greater Leipzig area, is active in the traditional planning, installation and maintenance of heating, ventilation and air conditioning systems (HVAC). The company was acquired by Storskogen in 2022 as part of the Services business area.

Between 2015 and 2021, Christ & Wirth benefitted from the strong German construction market. However, the situation changed in 2022 when rising interest rates and increasing bureaucracy within the German regulatory environment brought residential construction to a halt.

With Storskogen’s board involvement, the company reassessed its strategy and developed several initiatives, focusing on areas where Christ & Wirth had clear strengths.

Initiative 1: Refocusing strategically
Christ & Wirth decided to focus on general contractors and developers, securing repeat business by becoming their preferred HVAC partner for upcoming projects. In addition, the company shifted toward mid-sized, non-residential projects, where the company had clear USPs compared to its smaller competitors and the big players of the industry. Christ & Wirth also expanded its services across all construction trades, allowing for more efficient project delivery. This was facilitated by Storskogen’s financial stability and reputation, which reassured clients, enabling them to entrust Christ & Wirth with full responsibility.

Initiative 2: Realising synergies through add-on acquisition
The second major initiative centred on the strategic add-on acquisition of Möller klima-kälte, a specialist in servicing HVAC systems. Storskogen acquired Möller and restructured and integrated it into Christ & Wirth. At the time, Christ & Wirth’s own service arm was under-resourced and short-staffed. By aligning their strengths – Christ & Wirth’s team driving projects and Möller’s team dedicated exclusively to service – both businesses were able to support one another and focus on what they did best.

Initiative 3: Focusing on geographical hubs
Christ & Wirth also made changes to its geographical operations. Instead of having projects in various locations, the company focused on a few main hubs where multiple construction sites run in the same area. This setup allows teams to share resources, and if one project is delayed, staff can be assigned to another site, helping to keep everyone working efficiently.

Initiative 4: Building flexibility through variable workforce structure
Another cornerstone of the repositioning was the increased emphasis on a variable workforce by using subcontractor partners. This structure enables Christ & Wirth to scale up or down with market cycles while maintaining cost discipline. It also supports growth without the need for large long-term staffing commitments.

Growth and enhanced performance
Since the acquisition, Christ & Wirth’s sales have grown at an approximate 25 percent CAGR with an attractive profitability. These results reflect the impact of a clear strategic focus and the company’s ability to adapt to changing market needs with Storskogen’s support. With ongoing operational improvements, the company stands on a stable footing and has good conditions for continued progress, while remaining prepared to navigate industry developments.

Sandro Wiesendanger
Head of Business Area Services DACH
Head of M&A DACH
 

More about Christ & Wirth

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