Trinity Hunt Partners LP’s commercial HVAC investment NexCore, armed with a new debt facility, is targeting U.S. add-ons with at least $1 million of Ebitda and a focus on maintenance, repair and replacement services amid better deal flow in 2024, partner Garrett Greer told The Deal.

NexCore, which started with Trinity Hunt’s investment in Essex Junction, Vt.-based Alliance Group Inc. in April 2023, acquired Winston-Salem, N.C.-based Sylvester & Cockrum on May 14.

The platform hit the pedal on its growth plans toward the end of last year with a smaller acquisition of Milton, Vt.-based electrical contracting company Pratt & Smith Electric Inc. and closed a debt facility from Golub Capital earlier this month to capture more opportunities as more family- and founder-owned sellers test the waters.

“We generally target businesses with $1 million in Ebitda on the lowest end but with NexCore recently, we’ve had some good dialogue with businesses generating as much as $5 million to $7 million in Ebitda,” Greer said. “When lending markets start to open up as they have recently, acquisition activity follows pretty quickly.”

Add-On Criteria:

• Family- and founder-owned commercial HVAC companies
• Targeting companies with at least $1 million in Ebitda in eastern U.S.
• Majority of revenue from recurring repair, maintenance and replacement services
• Annual growth rate at or above industry average of 3% to 7%
• Also targeting plumbing, electrical and building automation

NexCore’s latest acquisition, Sylvester & Cockrum, boosts the platform’s presence in the southeastern states of North Carolina, South Carolina, Virginia, Georgia and Tennessee.

Editor’s note: The original, full version of this article was published June 3, 2024, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.