Private equity firm CenterOak Partners LLC and its affiliate CenterOak Equity Fund I announced the sale of Service Champions, the largest residential HVAC and plumbing services company in the Western U.S. Financial terms of the transaction were not disclosed.
Based in Orange County, California, Service Champions provides essential home services specializing 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. Service Champions goes to market via several local trade names including Service Champions, Moore Home Services, Bell Brothers, ASI, Adeedo! and ProSkill Services.
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,” said 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 $1.6 billion in enterprise value and are illustrative of our thesis driven approach in the lower middle market.”
“Our executive team and CenterOak shared a vision to capitalize on the fragmented nature of the residential services market by consolidating a geography that was comprised primarily of individual owner operators,” said Leland Smith, CEO of Service Champions. “The team at CenterOak has been more than a capital partner, utilizing their expertise with family-owned businesses which allowed us to solidify Service Champions’ position as the leading provider in the Western U.S.”
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.