Paceline Equity Partners has made a $40 million preferred equity investment in Kassel Mechanical Holdings as part of a broader recapitalization of the company and to fund the company’s acquisition of Arrow Electric.
Kassel Mechanical is a provider of mechanical, electrical, plumbing, and fire suppression (MEPF) services to commercial and industrial facilities.
Kassel, led by CEO and founder Tom Werner, is headquartered in Columbus, Ohio. The company was formed in 2016 and has acquired four business: Columbus, Ohio-based Haslett Mechanical in June 2016; Newark, Ohio-based Gutridge Plumbing in July 2017; Statesboro, Georgia-based The Sack Company in June 2022; and Phoenix, Arizona-based Midstate Mechanical in January 2022.
Additional capabilities of Kassel include millwright and rigging services used by general contractors, property developers, and facility managers during heavy equipment installations or retrofits.
Arrow Electric provides new construction and retrofit electrical contracting, home automation, and life safety systems to commercial, institutional, industrial, and residential customers. Specific Arrow capabilities include structured wiring, lighting installations, fire alarms, and energy-efficient automation systems. The company was founded in 2000 and is headquartered 80 miles north of Pittsburgh in Greenville, Pennsylvania, and services projects across the Mid-Atlantic.
“We are thrilled to work collaboratively with Kassel founder, Tom Werner, and the rest of the experienced management team to support the growth of Kassel, a fast-growing MEPF company with an established track record and exciting growth opportunities,” said Sam Loughlin, the chief executive officer of Paceline. “Paceline has significant experience investing in building products and construction sectors, and we look forward to bringing our financial and operational expertise to help Kassel scale and accelerate its growth.”
Paceline Equity Partners invests in value-oriented and special situations investments across real assets, corporate debt, and private equity. The firm invests in companies with a minimum of $25 million in revenue and $5 million in EBITDA, particularly in sectors such as building products, construction, real estate, and industrials.
“This transaction reflects Paceline’s ability to source differentiated opportunities and provide flexible capital solutions,” said Leigh Sansone, the chief investment officer of Paceline. “We are pleased to deliver a unique capital solution for Kassel to execute management’s growth strategy, which includes exciting organic and inorganic initiatives.”
Dallas-headquartered Paceline was formed in September 2018 by former members of the senior leadership team of Lone Star Funds.
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