Private equity firm Trinity Hunt Partners has acquired a majority stake in Alliance Group, a provider of commercial heating, ventilation and air conditioning (HVAC) systems and services. Steve Knowles will now lead the acquired business as CEO. Financial terms of the deal were not disclosed.
Looking ahead, Trinity Hunt will seek to acquire and tuck additional HVAC companies into Alliance Group, the firms said.
Among the wildcards to watch: Will Trinity Hunt pump sustainable energy strategies into the Alliance Group M&A strategy? We're betting that will be the case because of multiple converging trends involving legislation and emerging technologies that will drive the shift toward green buildings.
Indeed, the U.S. Department of Energy (DOE) Better Energy, Emissions, and Equity (E3 Initiative) is focused on deploying clean heating and cooling systems, including advanced water heaters, heat pumps, environmentally friendly refrigerants and smarter HVAC diagnostic tools for residential and commercial buildings, Grainger reports.
The overall HVAC system market is expected to reach $271.5 billion by 2026, up from $209.5 billion in 2022. That's a compound annual growth rate (CAGR) of 6.6%, according to MarketsAndMarkets.
Trinity Hunt Partners Acquires Alliance Group: About the Buyer and Seller
Alliance President Jason Patnaude
Together, Trinity Hunt Partners and Alliance Group are seeking to capitalize on those market growth trends.
Alliance Group, founded in 2010, is based in Essex Junction, Vermont. The company specializes in the maintenance, repair, and installation of commercial HVAC systems. Alliance Group also offers electrical, plumbing, construction, and building automation services, providing clients with a single-source solution for facility maintenance and repair needs. Alliance serves more than 500 clients across diverse end markets throughout the Northeast, the company said.
Trinity Hunt Partners based in Dallas, Texas, is a growth-oriented private equity firm with more than $1.7 billion in assets under management. Alliance Group is the private equity firm's first HVAC acquisition.
Garrett Greer, a partner at Trinity Hunt
In a prepared statement about the deal, Alliance President Jason Patnaude said: "With Trinity Hunt's support, we look forward to building upon the well-established market position and excellent service that Alliance is known for. We were very intentional in selecting a partner that not only has deep experience in growing commercial services businesses but also shares our core values and demonstrates the utmost respect for our team and customers.”
Added Steve Knowles, the newly appointed CEO of Alliance: “We are committed to building on Alliance’s strong foundation as we work collaboratively to establish a national commercial HVAC platform. With support from Trinity Hunt, we will remain focused on delivering exceptional client service while upholding a standard of operational excellence and outstanding workplace culture as we expand.”
Concluded Garrett Greer, a partner at Trinity Hunt: “Alliance’s impressive track record of growth, along with its commitment to quality service, made this partnership a perfect fit to launch our platform,. We look forward to scaling the business through strategic acquisitions across the U.S. and supporting management as they continue to execute on organic growth initiatives.”
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