Sterling Investment Partners Acquires Service Logic

Sterling Investment Partners has closed the acquisition of Service Logic through the acquisition of MSHC. Service Logic is a US provider of preventive and predictive maintenance services and related energy sustainability services for heating, ventilation and air conditioning systems. Credit Suisse’s Customized Fund Investment Group co-invested with Sterling, GE Capital led the senior credit facility and Babson Capital and PNC Erieview Capital provided subordinated debt for the transaction.

PRESS RELEASE

Sterling Investment Partners (“Sterling”), a leading Westport, CT-based private equity firm, announced today the closing of the acquisition of Service Logic through the acquisition of MSHC, Inc. (“Service Logic” or the “Company”). Service Logic is the largest independent U.S. provider of preventive and predictive maintenance services and related energy sustainability services for heating, ventilation and air conditioning (“HVAC”) systems. Credit Suisse’s Customized Fund Investment Group (“CFIG”) co-invested with Sterling, GE Capital led the senior credit facility, and Babson Capital and PNC Erieview Capital provided subordinated debt for the transaction. These lenders, together with CFIG, co-invested alongside Sterling in the transaction.

Headquartered in Denver, Colorado, Service Logic is a trusted provider of mission-critical services to over 6,000 commercial, industrial and institutional clients for HVAC systems, chilled water systems and building automation and controls. Through its certified energy managers, the Company provides a comprehensive suite of solutions to improve the energy efficiency and sustainability of its clients’ facilities. Operating through its co-branded business units Engineered Cooling Systems, FacilitTech, Midwest Mechanical, Piedmont Service Group, PSR Mechanical and Tolin Mechanical, the Company provides services in Arizona, Colorado, Illinois, North Carolina, South Carolina, Florida, Alabama, Virginia and Washington, and employs approximately 600 highly trained field technicians, engineers and project managers.

Stephen O’Donnell, Chief Executive Officer of Service Logic, noted, “We are very impressed with Sterling’s history of building businesses and philosophy of working as partners with management. Our team is excited to be working with Sterling and our business units will continue to provide the same high level of service our customers. Sterling intends to support the growth of both the services we provide to our customers and the geographies we cover.”

William Macey, a Managing Partner of Sterling, commented, “Service Logic is a leader in its industry. We believe that in an environment of rising energy costs, Service Logic’s strong capabilities to improve clients’ energy efficiency through increasingly sophisticated solutions, such as remote monitoring technology, positions the Company for future growth.”

Mr. Macey continued: “We believe that Service Logic has an outstanding management team, who we greatly look forward to working with. Sterling is committed to providing the necessary resources to grow Service Logic through internal initiatives as well as add-on acquisitions.”

Service Logic

Headquartered in Denver, Colorado, Service Logic is the leading independent provider of heating, ventilation and air conditioning (“HVAC”) maintenance services in the United States. The Company delivers its solutions to a diverse customer base of over 6,300 commercial, industrial and institutional clients on a self-perform basis through 24 offices across 16 states. www.servicelogic.com

Sterling Investment Partners, L.P.

Founded in 1991, Sterling Investment Partners (“Sterling”) has been investing in and building middle market companies for over 21 years with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Sterling has a long history of working in partnership with management teams. Sterling has approximately $1.0 billion of equity capital under management, which includes significant investment from Sterling’s professionals. Over its history, Sterling has completed platform investments, strategic or add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value in excess of $8.8 billion, representing more than 100 transactions. Key industries Sterling focuses on are business services, industrial and consumer value-added distribution, niche manufacturing, and transportation and logistics.

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