PE sees fragmented $20B HVAC contractor segment as ripe for consolidation

Private equity professionals view the HVAC contracting industry as a large, fragmented, recession-resistant segment ripe for consolidation, fueling several PE-backed acquirers rolling up independent firms.

“When private equity (PE) professionals look at HVAC contractors, they see a field ripe for consolidation. There are thousands of independent firms operating across the nation — strong companies that PE professionals believe would benefit from the resources of a regional or even national presence. They also see a business segment valued at around $20 billion that is fairly recession resistant. As a result, there are several HVAC firms growing today by acquiring established HVAC contractors using money from private equity firms.”

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