LOS ANGELES - Source Refrigeration & HVAC Inc. announced that it has been acquired by Arsenal Capital Partners, a New York-based private equity firm that invests in middle-market manufacturing and services companies. Arsenal acquired Source from Valor Equity Management and Denargo Capital LLC. Source's management will continue to own a meaningful stake in the company.
Source is a leading independent provider of commercial refrigeration services in North America, serving customers in 12 contiguous Western states. According to the company, its expertise in complex commercial refrigeration systems has enabled it to develop substantial long-term relationships with top supermarket chains and many of the largest convenience and retail food companies.
"Source has all of the characteristics we look for in an investment, including being a market leader in its niche, having highly recurring revenues, complexity and technical expertise in their offering, and an excellent growth profile," commented Terrence Mullen, managing director of Arsenal Capital Partners. "We are excited to work with Brad Howard and his team to continue to build upon Source's impressive heritage of growth."
"We have been very pleased to work closely with the principals of Valor and Denargo who helped us achieve strong growth and expand our service offering and geographic footprint," said Brad Howard, president and CEO of Source. "We are excited to now become a member of the Arsenal Capital portfolio of companies. We believe Arsenal has the expertise and resources to enable us to continue our profitable growth across the U.S. As we grow, our customers will benefit from a broader regional and national footprint, an expanded variety of service offerings, and a greater technical capacity and support."
Jan. 31, 2007: Source Refrigeration & HVAC Acquired by Arsenal Capital Partners
January 31, 2007