PE-Driven HVAC Consolidation Wave Continues with Rising Platform Sales

The second wave of HVAC consolidation, fueled by private equity, is showing increasing success as measured by PE-to-PE platform sales. The number of these sales has risen sharply since 2019 in both commercial and residential markets, with an estimated $7.8B in HVAC revenue transacted in this wave.

“After the initial wave of HVAC consolidation came to an abrupt halt in the early 2000’s, the second wave began slowly with the first two PE platform sales to other PE firms occurring in 2006 (residential) and 2007 (commercial). Then there was a significant lull until the second PE to PE sale in 2012 (commercial) and 2014 (residential). Since then, these sales are on the rise with sharp recent increases in both the commercial and residential markets starting in 2019.”

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