American Capital’s Special Situations Group has acquired Service Experts, a provider of sales, installation, maintenance and repair of HVAC systems for the residential and light commercial markets. American Capital’s investment took the form of preferred and common equity and a revolving credit facility.
In tandem with the acquisition, American Capital has appointed Scott Boxer as the President and CEO of Service Experts. Mr. Boxer is a recognized leader in the HVAC industry with a track record of leading businesses through transformations and growth initiatives. After 40 years in the industry, Mr. Boxer retired from Lennox International in 2010, where he had spent a decade-long tenure in various executive positions, including President and Chief Operating Officer of Service Experts from 2003 to 2010.
“American Capital’s complete financing package and operational support make them an ideal owner for Service Experts,” said Mr. Boxer. “We look forward to a strong relationship with American Capital as we look to continue to service and grow our large national customer base, expand our product offering, and grow revenue both organically and through add-on acquisitions.”
Service Experts owns and operates 108 branch locations in the United States and Canada with approximately $385 million in annual sales. The company offers complete HVAC services, including inspections, maintenance, sales and equipment installation of heating and air conditioning and cooling systems. In addition, the company offers a line of indoor air quality solutions and energy-saving green solutions. Service Experts is headquartered in Richardson, TX (www.serviceexperts.com).
“The American Capital Special Situations Group’s experience in identifying value-oriented investment opportunities and arranging appropriate one-stop financing enabled us to complete successfully the buyout of Service Experts, providing the company with new capital to solidify further its leading market position,” said Gordon O’Brien, President, Specialty Finance and Operations. “Our Operations Team will support our Special Situations Group in providing Service Experts with enhanced operational and marketing skills, lean management implementation and comprehensive business planning expertise.”
American Capital is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $117 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda, MD (www.AmericanCapital.com).
“The investment in Service Experts represents a solid opportunity to partner with an industry veteran to strengthen a company with a large installed infrastructure ready for growth,” said Myung Yi, American Capital Managing Director, Special Situations Group. “We have assembled a highly talented management team with tremendous industry expertise that will be focused on driving value creation.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-26-13
