CenterOak Partners (CenterOak), a Dallas-based private equity firm, and its affiliate CenterOak Equity Fund I, have sold Service Champions, a residential HVAC and plumbing services company in the Western US. Financial terms of the transaction have not been disclosed.
Based in Orange County, CA, Service Champions is a provider of essential home services specialising in heating, air conditioning and plumbing services. The Company employs over 850 technicians that perform over 275,000 service jobs annually across a growing branch network. As the largest residential service provider in the Western US, Service Champions goes to market via several iconic local trade names including Service Champions, Moore Home Services, Bell Brothers, ASI, Adeedo! and ProSkill Services.
With the sale of Service Champions, Fund I has now returned more capital to investors than the firm has called from its USD420 million Fund I, which is approximately 90 per cent drawn. Along with the previous sales of FullSpeed Automotive and TruRoad Holdings, the sale of Service Champions marks the third successful exit out of a portfolio of eight platform investments completed in Fund I, and the second in the last 60 days.
“We enjoyed working hand in hand with the Service Champions team to build a platform of significant scale that ultimately produced a great outcome for all involved,” says Randall Fojtasek, Chief Executive Officer and a Managing Partner of CenterOak. “We are pleased with the progress that we have made at CenterOak, especially in Fund I. Collectively, the sale of Service Champions, FullSpeed, and TruRoad represent nearly USD1.6 billion in enterprise value and are illustrative of our thesis driven approach in the lower middle market.”
“Beginning with our investment thesis in the highly fragmented residential services market, we successfully expanded Service Champion’s footprint into eight new markets while accelerating organic growth through the introduction of complementary service lines as well as expansion to over 60,000 club members,” says Lucas Cutler, a Managing Partner of CenterOak. “During our hold the Company grew by completing strategic acquisitions, consolidating supply chain and purchasing power, implementing a single IT system, and harmonising best operational practices, while maintaining a commitment to best-in-class customer service. We wish Service Champions CEO Leland Smith and his entire team continued success as they undertake the next chapter of the Service Champions story.”
“CenterOak has been a great strategic partner,” says Leland Smith, CEO of Service Champions. “Our executive team and CenterOak shared a vision to capitalise on the fragmented nature of the residential services market by consolidating a geography that was comprised primarily of individual owner operators. The team at CenterOak has been more than a capital partner, utilising their expertise with family-owned businesses which allowed us to solidify Service Champions’ position as the leading provider in the Western US.”
BlackArch Partners served as the exclusive financial advisor to Service Champions in connection with the transaction. Gibson, Dunn & Crutcher LLP served as legal counsel to CenterOak.
