PALLADIN CONSUMER RETAIL PARTNERS AND SOUTHEAST MECHANICAL FORM OPERATOR-DRIVEN HVAC PLATFORM

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Palladin Consumer Retail Partners, LLC

Jul 13, 2022, 11:30 ET

Investment Provides Capital and Support for Growth and Acquisitions

BOSTON and WINSTON-SALEM, N.C., July 13, 2022 /PRNewswire/ -- Palladin Consumer Retail Partners, LLC ("Palladin" or "PCRP") (pcrp.com) announces a majority investment in SEM Holdings, LLC ("Southeast Mechanical" or the "Company") (www.southeast-mechanical.com). Existing shareholders, including Colmont Group and management, will retain an ownership position in the Company and continue to assist Palladin in growth and acquisitions.

Southeast Mechanical & PCRP Logo

Southeast Mechanical is a highly scalable and proven platform that currently consists of four primary HVAC operating companies in North Carolina: Triangle Contractors, Warren-Hay Mechanical Contractors (including Sheet Metal Duct Suppliers), Airmakers Heating & Cooling, and Logan Heating & Air Conditioning. The Company operates and is focused on expanding in the highly attractive southeast U.S. market through organic growth and acquisitions. Southeast Mechanical is led by an experienced senior management team, has over 300 professionals and currently serves over 11,000 residential and commercial customers.

Palladin partnered with Southeast Mechanical to provide the capital and support to accelerate its expansion strategy of acquiring strong HVAC companies in the region. Since its founding in 1998, Palladin has partnered with numerous founders and management teams to expand their businesses successfully. The portfolio team led by Anders Petersen, Managing Director, and Mark Schwartz, CEO, will work closely with the existing Southeast Mechanical team and Palladin operating partners providing marketing, financial, human resources, systems, and other expertise.

Hugh Elks, President of Southeast Mechanical, said "The Palladin team brings a wealth of experience growing service businesses. Their expertise and support will provide not only capital, but operational support that will be instrumental in helping Southeast Mechanical become a major regional and national HVAC platform. We look forward to working with Palladin during this next phase of growth."

Mark Schwartz, CEO of Palladin, added, "We are excited to partner with Hugh, Keith Bagby, CFO, the entire Southeast Mechanical team, as well as Colmont Group, in the growth of this platform. The companies within Southeast Mechanical are well respected in the industry and in their region. They have built a strong reputation for quality and service, and we are confident that, with additional capital and operating assistance, we can work together to significantly expand Southeast Mechanical's reach."

Anders Petersen, Managing Director of Palladin commented, "We have spent a long time researching the HVAC sector and identified Southeast Mechanical as the perfect anchor acquisition. The expertise of the Southeast Mechanical team, their commitment to employees and customer service, and the geographic area of the country in which the Company currently operates provide an excellent partnership and platform for expansion."

Goldman Sachs provided debt financing for the transaction, as well as an unfunded acquisition line and revolving credit facility to support future growth.

Advisors to Palladin included Morgan Lewis & Bockius, LLP and Everett, Gaskins Hancock LLP for legal services, Crowe, LLP for accounting, Krauter & Company for insurance and benefits, and Retail Technology Group for information systems. The company was represented by Johnston, Allison & Hord, PA for legal services, and Miller McNeish & Beedlove for accounting.

ABOUT PALLADIN CONSUMER RETAIL PARTNERS (PCRP)
Palladin Consumer Retail Partners is a private equity firm with extensive experience investing in and building leading consumer brands and service platforms. Founded in 1998, the firm prides itself on working closely with management teams to create value through strategic and operational initiatives. Its principals have previously held CEO and other senior executive roles at several wholesale, retail, customer services companies, and have invested in, financed, or managed over 100 public and private companies. Current and former investments include Splash Car Wash, Tailwind Hospitality, Leapfrog Brands, Decowraps, PB/Cycle Metro, KT Tape, Nic+Zoe, InMotion Entertainment, J. McLaughlin, Things Remembered, Restoration Hardware, Spencer Gifts, Jamba Juice, Worldlynx, Multi-Flow, and Kwik-Tek.

CONTACT:

PALLADIN CONSUMER RETAIL PARTNERS
Patricia Donnelly
1-617-585-3802
[email protected]

SOURCE Palladin Consumer Retail Partners, LLC