Buckeye Ventures Inc. (BEYV) has acquired Barnett Heating and Air Conditioning Services Inc., based in Modesto, Calif.
Founded in 1961, Barnett said it specializes in “complete energy savings solutions for homeowners in the residential market.” The new acquisition is expected to increase Buckeye’s revenue stream, contributing an expected $3.5 million boost to annual revenue. It is also expected to increase Buckeye’s scope of operations regionally, designed to augment Buckeye’s existing Energy King operation based in Sacramento, Calif.
Management said the Modesto area is an ideal location for Buckeye, allowing it to take advantage of synergies with Buckeye’s other locations. The proximity of the Energy King and Barnett operations will allow the enterprise to consolidate overhead in accounting, operations, and administration.
According to BEYV, the senior management team at its Energy King location in Sacramento - Varin Larson and Alan Hardwick - “has a national reputation in assisting many air conditioning, heating, and plumbing companies to make major improvements in their business operations, increasing revenues and profits.” According to Buckeye, this team has more than tripled Energy King’s customer base and revenue stream over the past four years and is to oversee the Barnett integration, working to streamline Barnett’s operating system, as well as expanding Barnett’s footprint in the central California region.
The Barnett acquisition is the latest step in Buckeye’s national acquisition strategy, and BEYV plans to implement the same business practices in Modesto that it has used in its Boston and Sacramento operations.
“This acquisition was particularly attractive for several reasons,” explained Alan Mintz, president and CEO of Buckeye. “First, it takes advantage of our great management team in the area, providing significant insight into the industry and performance enhancing capabilities. Second, its location represents an attractive opportunity for significant regional growth as BEYV continues its progress in building its national group.”
BEYV said it was formed for the purpose of acquiring and operating businesses in the retail home services industry, with the objective of creating a national brand “for the consumer in a space where there is no established recognizable national name.” Buckeye said it has committed to an acquisition schedule. In a statement, it said it plans “to become a nationwide leader in the HVAC and plumbing sectors by providing many small- and mid-sized local and regional operators with the opportunity to become part of a growing national conglomerate as a publicly held company.”
Buckeye Ventures Acquires Barnett Heating and Air
January 29, 2007