As Omers Private Equity Inc. looks to build up its latest portfolio company, Pueblo Mechanical & Controls Inc., the firm may take a page or two out of the playbook it has enlisted at fellow HVAC and services portfolio company Turnpoint Services LLC, which has more than doubled Ebitda in less than two years, according to managing director Eric Haley.
Like Turnpoint — a residential HVAC and plumbing services provider that completed 21 add-on deals in 2021 alone — the newly acquired commercial HVAC company’s plans include deals to expand its geographic footprint as well as add new services among other investments to improve scale and efficiency.
“We are open to both larger, transformational acquisitions that would add new capabilities or customers, or provide a strong entry point to a new geography for Pueblo, as well as smaller tuck-ins to build regional density,” said Haley of the firm’s Aug. 5 investment (closed on Aug. 23), though he declined to give specific ranges for such deals.
The firm is looking for add-on businesses with a high proportion of retrofit and service work for commercial buildings in the K-12, higher education, healthcare and government markets, Haley said. Pueblo will focus its geographic expansion on contiguous southern states in the U.S., with plans for national scale. The company, with an existing presence in its home state of Arizona as well as Colorado, New Mexico, Texas and Utah, already has a “robust” M&A pipeline, Haley said.
The strategy rings true of one that is already unfolding at Louisville, Ky.-based Turnpoint, which Omers acquired in November 2020 from Trivest Partners LP with an eye on building on the company’s acquisition history that included 16 rollups.
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