CenterOak sells Service Champions

CenterOak Partners LLC has sold Orange County, California-based Service Champions, a residential HVAC and plumbing services company.

CenterOak Partners LLC has sold Orange County, California-based Service Champions, a residential HVAC and plumbing services company. No financial terms were disclosed. BlackArch Partners served as financial advisor to Service Champions on the deal.

PRESS RELEASE

DALLAS – January 4, 2021 – CenterOak Partners LLC (“CenterOak”), a Dallas-based private equity firm, and its affiliate CenterOak Equity Fund I (“Fund I”), today announced the sale of Service Champions (“Service Champions” or the “Company”), the largest residential HVAC and plumbing services company in the Western U.S. Financial terms of the transaction were not disclosed.

Based in Orange County, CA, Service Champions is a premier provider of essential home services specializing in heating, air conditioning and plumbing services. The Company employs over 850 technicians that perform over 275,000 service jobs annually across a growing branch network. As the largest residential service provider in the Western U.S., Service Champions goes to market via several iconic local trade names including Service Champions, Moore Home Services, Bell Brothers, ASI, Adeedo! and ProSkill Services.

With the sale of Service Champions, Fund I has now returned more capital to investors than the firm has called from its $420 million Fund I, which is approximately 90% drawn. Along with the previous sales of FullSpeed Automotive and TruRoad Holdings, the sale of Service Champions marks the third successful exit out of a portfolio of eight platform investments completed in Fund I, and the second in the last 60 days.

“We enjoyed working hand in hand with the Service Champions team to build a platform of significant scale that ultimately produced a great outcome for all involved,” said Randall Fojtasek, Chief Executive Officer and a Managing Partner of CenterOak. “We are pleased with the progress that we have made at CenterOak, especially in Fund I. Collectively, the sale of Service Champions, FullSpeed, and TruRoad represent nearly $1.6 billion in enterprise value and are illustrative of our thesis driven approach in the lower middle market.”

“Beginning with our investment thesis in the highly fragmented residential services market, we successfully expanded Service Champion’s footprint into eight new markets while accelerating organic growth through the introduction of complementary service lines as well as expansion to over 60,000 club members,” said Lucas Cutler, a Managing Partner of CenterOak. “During our hold the Company grew by completing strategic acquisitions, consolidating supply chain and purchasing power, implementing a single IT system, and harmonizing best operational practices, while maintaining a commitment to best-in-class customer service. We wish Service Champions CEO Leland Smith and his entire team continued success as they undertake the next chapter of the Service Champions story.”

“CenterOak has been a great strategic partner,” said Leland Smith, CEO of Service Champions. “Our executive team and CenterOak shared a vision to capitalize on the fragmented nature of the residential services market by consolidating a geography that was comprised primarily of individual owner operators. The team at CenterOak has been more than a capital partner, utilizing their expertise with family-owned businesses which allowed us to solidify Service Champions’ position as the leading provider in the Western U.S.”
BlackArch Partners served as the exclusive financial advisor to Service Champions in connection with the transaction. Gibson, Dunn & Crutcher LLP served as legal counsel to CenterOak.

About Service Champions
Based in Orange County, CA, Services Champions is a premier provider of essential home services specializing in heating, air conditioning and plumbing services. The Company employs over 850 technicians that perform over 275,000 service jobs annually across a growing branch network. As the largest residential service provider in the Western U.S., Service Champions goes to market via several iconic local trade names including Service Champions, Moore Home Services, Bell Brothers, ASI, Adeedo! and ProSkill Services.

About CenterOak Partners LLC
CenterOak Partners LLC is a private equity firm with a focus on making control-oriented investments in middle market companies organized or operating in the United States. The Firm specializes in three key industry sectors: Industrial Growth, Consumer, and Business Services. Based in Dallas, Texas, the investment and portfolio management team has a strong history of creating significant value through operational improvement. CenterOak and its Partners have managed over $2.2 billion of equity capital commitments and have completed over 100 transactions, representing over $5.8 billion in value. For additional information, please visit www.centeroakpartners.com.