Huron Capital has sold Pueblo Mechanical & Controls, a commercial HVAC and plumbing services company, to OMERS Private Equity.
Huron launched Pueblo Mechanical in December 2017 in partnership with industry veteran Dan Bueschel. The Tucson-based company is a provider, across five states in the Southwest and Rocky Mountain regions, of HVAC and plumbing installation, maintenance, retrofit and repair services to facilities in multiple end markets, including education, municipal, industrial, commercial and healthcare.
Since Huron’s initial investment in 2017, Pueblo saw strong organic growth and it also completed 16 add-on acquisitions which resulted in a four-fold increase in revenue and EBITDA. Two recent add-ons by Pueblo include the buys of Denver-based ProCraftMechanical in July and the buy of Albuquerque-based Travers Mechanical Services in June.
“We acquired Pueblo because we believed demand for HVAC repair and installation services would increase and the sector was ripe for consolidation. Since then, regional population growth, aging infrastructure, energy efficiency and sustainability have driven demand for Pueblo’s services,” said Scott Hauncher, a partner at Huron.
“We have a clear focus to become one of the largest independent technical services operators in the US by leveraging a scalable platform with an experienced and aligned management team,” said Mr. Bueschel. “Due in large part to the investments we made in the systems and team, in addition to leveraging Huron’s demonstrated M&A playbook, we executed and integrated numerous acquisitions including six in 2022 alone.”
“We have been extremely proud to support Dan and his team over the last five years,” added Mr. Hauncher. “Under Dan’s leadership, Pueblo is poised for continued expansion through M&A, and we look forward to following their success under OMERS’ ownership.”
“Pueblo is a world-class platform focused on delivering the highest-quality execution and customer service in a market poised for further growth,” said Eric Haley, a senior managing director and head of North America at OMERS Private Equity. “As long-term investors, we are excited to partner with CEO Dan Bueschel and the talented Pueblo team to accelerate growth through strategic M&A and by pulling all levers to increase organic growth.”
“Dan and the team have built Pueblo into an industry leader, and we look forward to partnering with them. It is an exciting moment in the commercial services industry, and Pueblo is well-positioned to capitalize on the secular trends towards energy efficiency, sustainability, decarbonization, and digitization that are driving demand,” said Jeff Kahn, a director at OMERS Private Equity.
Toronto-headquartered OMERS Private Equity manages the private equity activities of OMERS, one of Canada’s largest pension funds with C$121 billion in assets. The group’s investment size ranges from $200 million to $700 million in North American and European-based companies that are active in manufacturing, financial and business services, industrial and consumer products, transportation, and technology. OMERS manages approximately C$19.6 billion in private equity investments.
Huron Capital makes control and non-control investments in companies with revenues of $20 million to $200 million and EBITDAs of $5 million or more. Sectors of interest include business services, consumer goods and services, and specialty industrials. Founded in 1999, Detroit-based Huron Capital has raised $1.8 billion in capital through six private equity funds and invested in over 250 companies.
The sale of Pueblo is Huron Capital’s fourth platform exit in the last twelve months.
Moelis & Company was the financial advisor to Huron and Pueblo on this transaction.
© 2022 Private Equity Professional | August 30, 2022