Private equity backs plumbing
RLJ Equity Partners partnered with LP First Capital, a private investment firm based in Austin, Texas, to recapitalize three companies to create Flow Service Partners, a provider of essential services including heating, ventilation, air conditioning, and refrigeration and plumbing services in Florida and Indiana.
Headquartered in Nashville, Tenn., Flow focuses on maintenance, repair, replacement/retrofit, and installation services to commercial customers primarily. Flow has three locations across two states and employs approximately 230 people.
"Flow provides critical services to its customers and has differentiated leadership positions in its markets," said Nigel Howard, managing director at RLJ, who will become chairman of the board of directors. "We look forward to supporting the Flow team in its long-term strategy of executing add-on acquisitions, adding scale, and building a leading commercial HVACR and plumbing platform in the U.S."
"We are extremely excited to pursue a roll-up in the commercial HVACR and plumbing industries," said Thomas Ince, Managing Director at LPFC, who will also join the Board of Directors. "We have a well-developed thesis focused primarily on Southeast markets and believe we have partnered with three great businesses to create a differentiated leader in our served markets."
"We are very pleased to partner with the three companies making up our initial platform," said Michael Epperson, president & CEO, who will also join the board of directors. "With the support of RLJ and LPFC, we will continue to invest in the growth of the team and platform, and positively impact our customers, partners and communities."
RLJ provided the controlling equity for the transaction. Brookside Capital Partners provided the transaction debt and equity co-investment to help facilitate the transaction. DLA Piper LLP and McGuireWoods LLP served as legal advisors, and CohnReznick LLP served as financial advisor to RLJ and LPFC. Priority Business Brokers served as an advisor to the selling shareholders of the three acquired companies.