Transformational Combination Builds a Market Leader in Temperature Control Rental Services
NEW YORK – August 7, 2017 – One Equity Partners (“OEP”), a middle market private equity firm, today announced that its portfolio company Resolute Industrial, LLC (“Resolute”), a Wheeling, Ill.-based provider of cooling, HVAC and compressor equipment rental and remanufacturing services, has completed the acquisition of Tioga HVAC Rentals (“Tioga” or “the Company”), a leading supplier of heating and small-tonnage cooling equipment. Terms of the private transaction were not 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 superregional 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,” said 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,” said 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,” said 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,” said 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., Inc. advised Mangrove Equity Partners and Hunter Equity Capital in the sale of Tioga to Resolute.
About Resolute Industrial
Resolute Industrial is a leading independent provider of compressor remanufacturing, chiller rental and refrigerant storage solutions for large industrial HVAC systems. Through its strategically located national depot network, Resolute Industrial is a proven provider of HVAC cooling solutions across North America. After separating from Johnson Controls in October of 2015, Resolute Industrial stands as an independent company focused on providing leading quality service to a wide spectrum of customers in the HVAC industry. For more information, please visit www.resolute-industrial.com.
About One Equity Partners
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an extensive track record generating long-term value for its partners. Since 2001, the firm has completed more than 150 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
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