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One Equity Partners’ Resolute Industrial acquires Tioga HVAC Rentals

Middle market private equity firm One Equity Partners’ (OEP) portfolio company Resolute Industrial, (Resolute), a Wheeling, Illinois-based provider of cooling, HVAC and compressor equipment rental and remanufacturing services, has completed the acquisition of Tioga HVAC Rentals (Tioga), a supplier of heating and small-tonnage cooling equipment.

Terms of the private transaction have not been disclosed.
 
Headquartered in Detroit, Tioga provides portable commercial heating, ventilation and small-tonnage cooling equipment, with offices across the Midwest. Established in 1977 as an air heater manufacturing business, the Company has grown its equipment rental capabilities over the last 40 years to become a super-regional provider of 14,500 independent temperature control rental products serving general contractors, mechanical contractors and other non-residential customers.
 
“The acquisition of Tioga doubles the size of Resolute’s business and helps broaden Resolute’s product offerings into a range of products that are widely used among a variety of HVAC customers,” says JB Cherry, Senior Managing Director of One Equity Partners.
 
“Tioga and Resolute are highly complementary businesses with similarly loyal customers, high-quality products and strong, shared cultural values,” says Robert Russell, Chief Executive Officer of Resolute. “This acquisition further builds our specialty temperature control rental business and creates strong cross selling opportunities to ensure that key equipment needed by our nationwide customers is always available.”
 
“Resolute is an excellent company with a leading position in a fast-growing segment of the temperature control market,” says Mark Henry, who will continue to serve as President of Tioga HVAC Rentals. “We are excited about the enhanced service offering we will be able to provide our clients and look forward to continuing our next chapter of growth under our new ownership.”
 
Tioga will triple Resolute’s sales force with the addition of 22 sales professionals and 16 Midwest branch offices, while doubling its annual revenue.
 
“This transaction is a classic example of the transformative combination One Equity Partners has executed consistently over our history to compound scale, accelerate growth and create market-leading businesses with improved operational efficiencies,” says Andrew Oliver, Managing Director of One Equity Partners.
 
One Equity Partners acquired a majority equity interest in Resolute on September 30, 2015, through its acquisition from Johnson Controls in a corporate carve out.
 
Oppenheimer & Co advised Mangrove Equity Partners and Hunter Equity Capital in the sale of Tioga to Resolute.   

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