Gryphon Investors, a leading middle-market private equity firm, has announced that it has agreed to acquire AirX Climate Solutions (ACS), a leading designer, manufacturer, distributor, and servicer of highly-engineered, functionally-critical products for the specialty heating, ventilation, and air conditioning (HVAC) markets.

Gryphon's investment will support ACS' exciting growth initiatives, including broadening its geographic footprint, expanding its aftermarket and service offerings, and executing strategic acquisitions. As part of the transaction, ACS' CEO Rick Aldridge and other members of management will reinvest alongside Gryphon and will continue to manage the Company. Gryphon is acquiring the Company from private equity firm L Catterton, and the transaction is expected to close in the fourth quarter of 2023. Financial terms were not disclosed.

Founded in 1997 and headquartered in Oklahoma City, Oklahoma, ACS is a full-service, specialty HVAC solutions provider. The company offers design, installation, maintenance, and repair of heating, ventilation, and air conditioning systems for specialized solutions across a diverse set of end markets, including telecommunications, data centers, energy storage, rental, educational, industrial, and commercial markets. With a workforce of over 600 people, ACS prides itself on delivering best-in-class service through its highly trained team and engineering capabilities.

"We are excited to invest in ACS and to partner with Rick and the Company's talented management team," said Scott Hearn and Leigh Abramson, co-heads of Gryphon's Industrial Growth Group. "We believe ACS, with its longstanding reputation for high-quality products and outstanding customer service, is an ideal platform upon which to further its leadership position in this large and highly fragmented market. We will leverage Gryphon's deep experience in the HVAC sector through our investments in Right Time and Southern Home Services, along with our successfully realized investment in Heritage Distribution Holdings, to help ACS continue to evolve."

Aldridge said, "We are delighted to partner with Gryphon as our next investor. Their depth of knowledge in HVAC and network of executive advisors will open several avenues for our next phase of growth. Our entire team remains fully committed to serving our customers with the highest levels of quality and service."

Mark Fuller, managing director in Gryphon's Industrial Growth Group, added, "ACS has a proven track record driven by its strong brands, including Custom Air Products & Services (CAPS) and Marvair, and its dedication to innovative customer solutions. We are thrilled to support Rick and ACS' experienced managers, with whom we will prioritize working closely to both accelerate organic growth and pursue add-on acquisitions."

As part of the transaction, Messrs. Hearn, Abramson, and Fuller will join the company's board of directors alongside Aldridge. The transaction marks Gryphon's fourth investment in the HVAC value chain and follows the firm's successful exit of Heritage Distribution Holdings earlier this year.

Jefferies and William Blair served as financial advisors to Gryphon. Baird and Nomura acted as financial advisors to ACS on the transaction. Kirkland & Ellis LLP acted as legal advisor to Gryphon.