North Branch Capital has acquired Randazzo Mechanical Heating & Cooling, a provider of heating, ventilation, and air conditioning services to the residential market in the state of Michigan.
Randazzo services and replaces furnaces, air conditioning units, humidifiers, thermostats, water heaters and other HVAC related equipment. The company was founded in 1988 and is headquartered north of Detroit in Macomb, MI (www.callrandazzo.com).
“We are thrilled to partner with North Branch as we embark on our next phase of growth,” said Mike Randazzo, President of Randazzo. “North Branch’s operating resources and strategic guidance will help take our company to the next level, both organically and through strategic acquisitions.”
North Branch Capital invests in companies with revenues from $10 million to $75 million and EBITDA of $2 million to $8 million. Sectors of interest include value-added distribution, industrial services, and niche manufacturing. The firm is led by partners Jon Leiman, Dan Bauman, and Bill Huber and is headquartered near Chicago in Elmhurst, IL (www.northbranchcap.com).
The acquisition of Randazzo is the fourth platform investment and eighth transaction completed by North Branch since its founding in 2014. “The Randazzo team has built an outstanding business, consistently delivering quality HVAC products and exceptional customer service to homeowners” said Mr. Huber. “Randazzo is well-positioned to continue its strong track record of growth in the Michigan market through its superior technical know-how and customer-centric approach.”
Co-investing on this transaction with North Branch were Aberdeen Standard Investments (www.aberdeenstandard.com), Schroder Adveq (www.schroderadveq.com) and members of the Randazzo senior management team.
Debt financing was provided by First Midwest Bank (working capital line of credit) alongside unitranche debt investments by Midwest Mezzanine Funds and Five Points Capital.
© 2017 Private Equity Professional | December 12, 2017
