Caymus Equity Partners has sold TriplePoint MEP to Stellex Capital Management.
Houston-headquartered TriplePoint MEP (mechanical, electrical, and plumbing) is a non-union provider of HVACR installations, maintenance, repair, design, and consulting services to commercial clients across a ten-state footprint in the Midwest and Southeast regions.
Caymus’ first investment through TriplePoint was the buy of Temp-Con in March 2018 in partnership with Centerfield Capital. At the time of this initial investment, Temp-Con had $25 million in revenue, 75 employees, and operated from a single location near Kansas City in Olathe, Kansas.
Under Caymus’ ownership, Temp-Con closed six add-on acquisitions between 2019 and 2023 and evolved from a single-state operation into one of the ten largest mechanical contractors in the United States with over $500 million in revenue and a ten-state geographic footprint.
“TriplePoint was another fantastic investment for Caymus Equity, having acquired a single-location business and transforming it into a ten-state, multi-regional operation in about five years,” said Geoff Faux, a partner at Caymus. “We recognized early on the significant opportunity to create value in the HVACR sector and identified Temp-Con as the right platform to execute our investment thesis. In close collaboration with an outstanding management team, we not only achieved our strategic initiatives, but also constructed one of the country’s largest and most recognized mechanical contractors in TriplePoint. The significant return we generated for our limited partners adds to the growing list of excellent investment outcomes for Caymus Equity.”
Today, TriplePoint’s operating subsidiaries include Kansas-based Temp-Con (acquired in March 2018), Kansas-based Cobb Refrigeration (December 2019), North Carolina-based Commercial Air Systems (September 2023), North Carolina-based Professional Air Systems (September 2023), Texas-based Polk Mechanical (September 2023), and Indiana and Ohio-based TP Mechanical (February 2022).
During the ownership term, revenue and EBITDA increased significantly through both organic and inorganic growth. According to Caymus, EBITDA increased organically by nearly 50% across the add-on acquisitions.
“We’ve had a lot of help from Caymus since our partnership began back in 2018,” said Gordie Beittenmiller, the CEO of TriplePoint. “We started at Temp-Con with approximately $25 million in annual revenue, and today we’re one of the largest MEPs in the United States. Whether it was developing a strategic roadmap to value creation, creating advanced key performance indicator (KPI) tools to monitor ongoing operations across the organization, assisting with executing our M&A strategy, or making key personnel hires, Caymus was there every step of the way and provided us with the resources and support needed to get to where we are today.”
“We saw a lot of opportunity in 2018 at the time of our first acquisition,” said Blake Cummings, a partner at Caymus, “and we’re excited to see the value we created be realized in a highly successful outcome for all stakeholders involved. We look forward to leveraging this success in continuing to create value across our portfolio and with future investment opportunities.”
Caymus invests North American-based companies that are valued from $10 million to $100 million and have EBITDA of $2 million to $12 million. Sectors of interest include business services, healthcare services, consumer, and industrials. The firm prefers to have a majority ownership position and be the first institutional capital in a business. Caymus was founded in 2001 and is based in Atlanta with an additional office in New York City.
“We are very excited to partner with the TriplePoint team and embark on this next chapter of scale,” said Irina Krasik, a managing director at Stellex. “Our team was highly impressed with the TriplePoint family of companies, who we believe have consistently demonstrated their adherence to core values around safety, employees, execution, and customer service. The company has a strong reputation, and we are excited to leverage our sector expertise and transformational capital in an effort to increase TriplePoint’s capabilities and geographic reach to better service its customers and provide a broader set of opportunities for its employees.”
New York City-headquartered Stellex invests from $50 million to $150 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include specialty manufacturing, industrial and business services, aerospace and defense, automotive, government services, transportation, logistics, and food. Stellex has additional offices in Detroit, Pittsburgh, and London.
© 2024 Private Equity Professional | June 14, 2024
