Banking & Finance, Construction, and Manufacturing

Private equity firm sells manufacturer

October 8, 2018
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Specified Air Solutions web screenshot

An out-of-state private equity firm has sold a company that makes some of its commercial HVAC equipment in the area.

The Sterling Group, based in Houston, said last week it has sold Buffalo, New York-based Specified Air Solutions — which has two HVAC manufacturing subsidiaries at a location in Comstock Park: Rapid Engineering and Bananza — to Madison Industries, a Chicago-based holding company.

Through its subsidiaries, Madison offers medical, energy, industrial, filtration, flow, safety and HVAC solutions and services.

Terms of the deal were not disclosed.

“Our goal was to help a formerly family-operated company quickly grow into a leading commercial HVAC solutions provider,” said John Hawkins, partner, The Sterling Group. “In partnership with an exceptional and deep management team, Sterling transformed Specified Air Solutions into a winning business for employees, customers and investors alike.”

“Sterling was the right strategic, operational and financial partner for Specified Air Solutions’ recent period of strong growth,” said Charley Brown, CEO, Specified Air Solutions. “We look forward to capitalizing on the business’s momentum in partnership with Madison.”

Sterling was advised on the transaction by Charlotte, North Carolina-based BlackArch Advisors and Houston-based Bracewell.

Specified Air Solutions

The Sterling Group Sterling launched Specified Air Solutions in 2014 with the acquisition of Roberts-Gordon. It acquired and added to its platform other companies over the years, including Rapid Engineering and Bananza; Orlando, Florida-based Addison; and Minneapolis-based Weather-Rite.

Specified Air Solutions is a commercial HVAC equipment manufacturer focused on providing end users with “semi-custom energy-efficient solutions for indoor air quality, cooling, heating and de-humidification needs.”

The company’s products are used in several markets: education, hospitality, distribution warehouses, retail, community centers, vehicle service shops, offices and manufacturing facilities.

The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies.

Typical enterprise values of these companies range from $100 million to $750 million.

Sterling has sponsored the buyout of 52 platform companies and numerous add-on acquisitions for a total transaction value of more than $10 billion.

Currently, Sterling has more than $1.9 billion of assets under management.

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