Investcorp, a leading global alternative investment firm, announced a majority investment in Shearer Supply, a leading independent specialty distributor of essential Heating, Ventilation and Air Conditioning (HVAC) equipment for residential and commercial properties in the United States. The previous owners of the company, including Shearer’s management team, the Shearer family and PNC Riverarch Capital will re-invest meaningfully alongside Investcorp and remain shareholders in the Company.
Founded in 1983, and headquartered in Dallas, Texas, Shearer is one of the largest independent distributors of HVAC products in the United States, serving over 5,500 clients from 22 branches across Texas, Oklahoma, Arkansas, Tennessee and Louisiana. Shearer distributes a comprehensive set of products including residential and commercial HVAC equipment and parts from over 120 suppliers including American Standard, Ameristar and Samsung.
“Shearer operates in a large, resilient and highly fragmented market driven by non-discretionary replacement demand, which we expect to continue to benefit from strong secular tailwinds including an aging housing stock, shortening replacement cycles and favorable regulation, in addition to its attractive Southern US geographic footprint where higher average temperatures and a growing population is increasing the demand for HVAC products. We are excited to partner with the Shearer family to drive organic growth and further expansion," said Dave Tayeh, Head of Private Equity North America at Investcorp. “We have experienced robust activity across our North American Private Equity platform this year, underscoring the strength of our strategy in partnering with growing, founder-led businesses as they look to scale their businesses.”
“Today’s announcement marks an important continuation of our strategy to identify and collaborate with high-potential businesses across a diverse range of sectors and markets globally”, said Yusef Al Yusef, Head of Investcorp Private Wealth. “In a fragmented industry with huge growth potential, Shearer combines robust and resilient fundamentals with strong cash flow, and together we are well placed to take advantage of the opportunities for expansion in the fast-growing HVAC market.”
“Investcorp has an established history of working with companies like Shearer and have demonstrated a strong track record in HVAC and specialty distribution,” said Michelle Shearer-Rodriguez, CEO at Shearer Supply. “We are looking forward to partnering with them on our next phase of growth and leveraging their strong industry insights.”
“Shearer provides a compelling value proposition for both contractors and original equipment manufacturers, acting as a one-stop-shop local partner with a breadth of products, expertise and value-added services,” said Steve Miller, Managing Director, Private Equity North America at Investcorp.
“This is an impressive family-owned and run business that has differentiated itself in its ability to scale and grow in excess of the market throughout its history and we are thrilled to be partnering with the Company’s highly motivated management team.”
Investcorp has an established history of investing and realizing value from leading value-added specialty distributors across several end markets, with investments including Arrowhead, American Tire Distributors, FleetPirde, Berlin Packaging and Fortune International, with a unique investment experience in the HVAC industry through its recent investment in and realization from the Wrench Group, a leading specialty provider of HVAC maintenance and repair services.
Investcorp’s North America Private Equity group has been investing in North American mid-market businesses for over 40 years and has completed approximately 70 transactions, deploying more than $22 billion in transaction value since inception.