GI Partners is making a majority investment in American Residential Services, which provides residential heating, ventilation, air conditioning and plumbing services. Existing investor Charlesbank Capital Partners and management also are making new investments in the business.
American Residential Services (ARS), the nation’s largest provider of residential heating, ventilation, air conditioning (HVAC) and plumbing services, announced today that GI Partners, a leading private investment firm, is making a majority investment in the company. Existing investor Charlesbank Capital Partners (Charlesbank) and management are also making significant new investments in the business.
Based in Memphis, Tennessee, ARS operates a network of more than 70 locally managed service centers in 23 states, with approximately 6,500 highly talented employees and the largest team of HVAC technicians and plumbers in the U.S. The company is dedicated to providing exceptional customer service, with an emphasis on highly skilled employees, state-of-the-art technologies including smart home and remote diagnostics, 24/7 service and a 100% money-back guarantee. It operates under the well-known national brand ARS, as well as through trusted local brands in select markets, while capitalizing on differentiated relationships with leading national retailers.
“We welcome GI Partners, our new majority partner, and are excited to work with them to build upon the considerable momentum in the business and execute on our growth opportunities,” said Dave Slott, CEO of ARS. “The GI Partners team brings deep services investment experience and operational and technological expertise that will provide significant opportunities for ARS’s employees while enhancing the customer experience. As we enter this next chapter of our evolution, we are also thrilled to continue our successful partnership with Charlesbank and are confident that these investments will accelerate our pace of both organic growth and M&A.”
Hoon Cho, Managing Director at GI Partners said, “We have great appreciation for the business that the team has built and have been impressed by the growth and resiliency evidenced by the Company to date. We are very excited to partner with management and Charlesbank to accelerate positive change and execute on the significant opportunities ahead.”
Jeff Sheu, Managing Director at GI Partners, added, “We look forward to collaborating with ARS and Charlesbank to aggressively expand ARS’s national footprint both organically and by acquiring best-in-class operators to strengthen ARS’s leading market position. We will remain committed to accelerating growth by deepening our strong relationships with customers, partners, and employees.”
Andrew Janower, Managing Director at Charlesbank, commented, “We appreciate the dedication of the senior leadership team since our initial investment in 2014, and we look forward to continuing to partner with them for the next phase of ARS’s growth as a national leader in the residential HVAC industry. We are especially grateful for the continued commitment of ARS’s front-line employees and technicians, who have worked tirelessly to provide outstanding uninterrupted service to consumers across the country through the COVID pandemic.”
The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions and regulatory approvals.
About American Residential Services
As an Exceptional Service Provider, ARS serves both residential and light commercial customers by providing heating, cooling, indoor air quality, plumbing, drain cleaning, sewer line, radiant barrier, insulation, and ventilation services. The ARS Network features industry-leading brands including, A.J. Perri, Aksarben ARS, Allgood, Andy’s Statewide, ARS, Aspen Air Conditioning, Atlas Trillo, Beutler, Blue Dot, Brothers, Columbus Worthington Air, Comfort Heating & Air, Conway Services, Efficient Attic Systems (EAS), Florida Home Air Conditioning, Green Star Home Services, McCarthy Services, Proserv, Rescue Rooter, RighTime Home Services, RS Andrews, The Irish Plumber, Unique Services, “Will” Fix It, and Yes! Air Conditioning and Plumbing.
About GI Partners
Founded in 2001, GI Partners is a private investment firm based in San Francisco, California. The firm has raised over $23 billion in capital from leading institutional investors around the world to invest in private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the Healthcare, IT Infrastructure, Services, and Software sectors. The real estate team invests across a broad range of platforms and strategies. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit www.gipartners.com.
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm managing more than $7 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings and also engages in opportunistic credit and technology investments. The firm seeks to build companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.