Gryphon Buyers Completes Majority Funding in Southern HVAC and Declares New Dwelling Providers Holding Firm
SAN FRANCISCO, October 4, 2021 / PRNewswire / – Gryphon Investors (“Gryphon”), a leading medium-sized private equity firm, today announced the acquisition of Southern HVAC (“Southern HVAC” or the “Company”) from MSouth Equity Partners (“MSouth”) . , a private equity firm based in Atlanta with an office in Nashville. Located in the Southeastern United States, the Midwestern United States, and Texas, the company is a leading provider of HVAC, plumbing and electrical services for residential buildings with 15 brands. Southern HVAC’s management team will remain with the company and retain a significant equity stake. Financial terms of the transaction were not disclosed.
Southern HVAC represents the acquisition of second home services by Gryphon in the past 10 months. In December 2020, Gryphon acquired Right Time Heating & Air Conditioning (“Right Time”), the largest independent HVAC service provider in Canada.
Southern HVAC and Right Time will be owned but operated independently by NAEHS (North American Essential Home Services), maintaining their existing brand names and current management teams, while leveraging the combined size and reach of the two businesses. As part of the transaction, Ian McKeen has become CEO of NAEHS. Mr. McKeen, a dual citizen of the United States and Canada, has spent more than 25 years in the home service industry and was previously President and COO of Service Experts, a leading provider of HVAC and plumbing services to residential buildings in The United States and Canada.
Mr. McKeen said, “The holding structure will allow each company to share best practices and benefit from economies of scale while maintaining the separate strategies and management teams that have made their success to date. I look forward to working with the CEO of Southern HVAC Bryan Benak and CEO of Right Time Craig Goettler to build two of the best home services companies in North America. “
Mr. Benak added, “Residential HVAC, plumbing and electrical services remain a highly fragmented industry, with demand growing as consumers spend more time in their homes. We aim to strengthen our position as the leading provider of residential services across Europe Texas, the US Southeast and the US Midwest with support from Gryphon, Ian, and Right Time. “
Mr. Goettler said, “We continue to enjoy our partnership with Gryphon and are excited about the opportunity to work with the Southern HVAC Management Team.”
Alex Earls, Gryphon Deal Partners, and Jeff Balagna, Gryphon Operating Partner, added: “The acquisition of Southern HVAC is an excellent strategic addition to Gryphon’s North American residential services strategy and is an excellent addition to Right Time, which has exceeded expectations since our investment last December. Joint ownership by Both NAEHS companies should create significant value for the stakeholders of both companies and we are excited to support Southern HVAC and Right Time’s organic and acquisition strategies as part of this investment. “
Charles Stubbs, an MSouth partner, said: “Bryan Benak and his team at Southern HVAC were instrumental in creating the value we saw during our investment and building one of the largest residential HVAC platforms in the South and Midwest through organic growth and a buy-and-build strategy. We have been fortunate to work with such an outstanding management team and we look forward to their continued success. “
DLA Piper served as legal advisor to Southern HVAC and MSouth. Stephens Inc. and Moelis & Company acted as financial advisor to Gryphon, while Kirkland & Ellis acted as legal advisor.
Via Southern HVAC
Southern HVAC is a leading provider of business critical HVAC, plumbing, and electrical replacement and repair services for residential buildings. Southern HVAC now operates 15 brands throughout Florida, Georgia, Missouri, North Carolina, South carolina, and Texas with over 650 employees. More information is available at www.southernhvac.com.
Southern HVAC is majority-owned by Gryphon Investors, a leading mid-sized private equity firm.
About the right time
Right Time is the leading Canadian supplier of independent heating, ventilation and air conditioning (“HVAC”) focused on the residential market. Right Time is now in 16 locations. employed Ontario, Manitoba, Alberta, and British Columbia with over 600 employees. Further information can be found at www.right-time.ca.
Right Time is majority-owned by Gryphon Investors, a leading mid-sized private equity firm.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm working in partnership with experienced management to focus on profitably growing and more competitive medium-sized companies. The company has over $ 5.0 billion of equity and capital since 1997. Gryphon intends to raise equity of $ 50 million to $ 300 million in portfolio companies with company values of approx. $ 100 million to $ 600 million. Gryphon prioritizes investment opportunities that can create strong partnerships with owners and executives to build leading businesses, leveraging Gryphon’s capital, specialist professional resources and operational expertise.
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SOURCE Gryphon Investors
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