HCI’s Tech24 Reaches Double Digits on Consolidation Effort
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HCI’s Tech24 Reaches Double Digits on Consolidation Effort

The buys of Arrowhead and AmeriCold are Tech24’s tenth and eleventh add-ons since being acquired by HCI in June 2020

Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment in 50 metro markets across 25 states

SOURCE: Tech24

Tech24, a platform of HCI Equity Partners, has closed two add-on acquisitions with the buys of AmeriCold and Arrowhead Commercial Equipment.

Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment in 50 metro markets across 25 states. Customers of the company include convenience stores, restaurants, coffee shops, concession operations, and other foodservice companies. Tech24, led by CEO Dan Rodstrom, is headquartered in Greenville, South Carolina.

AmeriCold is a provider of cold-side repair and installation services to restaurants, hotels, grocery stores, hospitals and universities in the New York metro area, Washington DC, and Southeast Florida.

Phoenix-headquartered Arrowhead is a hot and cold-side provider of repair services, preventative maintenance, and installation services for foodservice and refrigeration equipment. Arrowhead’s customers include restaurants, grocery stores, country clubs and senior care facilities.

The buys of Arrowhead and AmeriCold are Tech24’s tenth and eleventh add-ons since being acquired by HCI in June 2020. Prior acquisitions include Mississippi-based Temco (2022), Indiana-based Facilities Management (2022), Illinois-based Yukon Refrigeration (2021), Pennsylvania-based RMS Mechanical Services (2021), Connecticut-based Commercial Kitchens (2021), California-based United Service Technologies (2021), Illinois-based Alliance Mechanical Services (2021), Illinois-based Eichenauer Services (2021), Pennsylvania-based AIS Commercial Parts & Service (2021).

“We are excited to welcome both Americold and Arrowhead to the Tech24 organization,” said Mr. Rodstrom. “AmeriCold brings valuable scale and cold-side service exposure to the large New York market. Arrowhead helps us improve density and diversification in the fast-growing Phoenix market. Both companies come with a long history of strong performance, with accomplished leaders who are excited to develop future growth opportunities for their respective businesses.”

HCI invests in companies that have from $20 million to $200 million in annual revenue and $3 million to $25 million in EBITDA. Sectors of interest include value-added distribution, outsourced manufacturing, business-to-business services, and niche manufacturing. The Washington DC-headquartered firm was co-founded in 2003 by its managing partners Dan Dickinson and Doug McCormick.

“We are proud of Tech24’s continued ability to partner with great companies that expand the broader organization’s service areas and customer base,” said Mr. McCormick. “The pace of acquisitions completed is a testament to the team we have built at Tech24, and we look forward to continue supporting them in their M&A strategy.”

HCI continues to seek additional add-on acquisitions for Tech24 with a specific interest in North America-based food and beverage equipment service companies with adjusted EBITDA of at least $1 million.

© 2022 Private Equity Professional | September 1, 2022

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