Charlotte, NC (June 2, 2022) – Ridgemont Equity Partners, a middle market private equity investor, today announced a partnership with Crete Mechanical Group (“Crete” or “CMG”), a leading provider of HVAC, electrical, plumbing and building automation services to commercial, industrial, multi-family, government, healthcare, education and other end markets. CMG has been formed by the combination of local brands uniting under a national platform that offers shared administrative and business support, while also preserving the operational independence of the local leadership. Alongside the founders and management team of Crete, Ridgemont has provided significant growth capital to enable the continued build-out of a leading network of mechanical services providers across North America.
“HVAC and commercial services have been very dynamic industries over the last several years with substantial demand for skilled technicians, reliable providers and an increasing focus on energy efficient building services,” said Tim Dillon, Partner at Ridgemont Equity Partners. “We have recent, relevant experience in the sector and are excited to support the Crete leadership team and local operators to build the market-leading provider of essential HVAC, electrical, plumbing, building automation and other facility services across a range of end markets.” John Grenier, Principal at Ridgemont, added, “The founders, Jake Sloane and Frank Zhang, have established themselves as preferred partners to owners interested in unlocking both the growth potential and embedded value of their businesses through a significant recapitalization event, while still maintaining a degree of local autonomy that promotes cultural continuity and customer responsiveness. We found this to be a unique approach to building scale and efficiencies in a very fragmented industry, and we look forward to further accelerating this growth strategy.”
“This growth capital investment and strategic partnership with Ridgemont marks an important milestone for Crete,” said Jake Sloane and Frank Zhang, Co-Founders and Co-CEOs of Crete Mechanical Group, in a joint statement on behalf of CMG. “Ridgemont’s experience building HVAC and technician services platforms will be very valuable to our leadership team. The strength of our underlying platform will only be enhanced by working directly with the Ridgemont team to help our partner companies achieve outsized organic growth in the coming years. We are fully aligned with our partners at Ridgemont and excited to continue building a nationwide platform that serves as a one-stop-shop for both business owners looking to sell a majority stake in their businesses and local, regional and national customers looking for one company that can provide all of their mechanical, electrical, building automation and plumbing needs.”
Financing for the transaction was led by Ares Management Corporation and Churchill Asset Management. Solomon Partners and Kirkland & Ellis served as financial advisor and legal advisor, respectively, to Ridgemont. Harris Williams and Latham & Watkins served as financial advisor and legal advisor, respectively, to Crete. Terms of the transaction were not disclosed.