A&M Capital Partners Acquires Majority Interest in The Arcticom Group
Walnut Creek, CA – The Arcticom Group (“Arcticom”), a leading provider of mission-critical mechanical services primarily focused on commercial refrigeration and HVAC systems, announced that it has sold a majority interest to A&M Capital Partners (“AMCP”), a middle-market private equity firm with a strategic association with Alvarez & Marsal and a strong track record in the facility services industry. As part of the transaction, the senior management team led by Chief Executive Officer Jim Pape will remain with the company.
Arcticom is a leading provider of mechanical services for mission-critical refrigeration and HVAC systems serving commercial clients in expanding markets throughout North America. The Company has 900 full-time employees, including over 600 trained/certified technicians experienced in all phases of mechanical services. Arcticom services a large installed base across the full lifecycle of equipment, offering maintenance and repair services, system upgrade / retrofit solutions, and new system installation services. Based in Walnut Creek, CA, Arcticom serves its clients from regional offices throughout California, Washington, Oregon, Idaho, Alaska, Arizona, Colorado, Texas, and Western Canada. The Company services a diversified customer base of grocery and other commercial clients across 17 states and provinces.
“We are excited to partner with the management team to acquire a majority interest in Arcticom, a market leader with a well-earned reputation for providing best-in-class services to the company’s long-tenured clients,” said Jack McCarthy Jr., Managing Partner and Co-Founder of Alvarez & Marsal Capital. “Arcticom has experienced strong growth since inception, and we look forward to working with the management team to continue that success.”
“Our team has methodically sought to find the right platform in the mechanical services sector for several years, and we are thrilled to have partnered with the Arcticom team to support their next phase of growth,” said David Perskie, a Partner at AMCP. “This transaction builds on A&M Capital’s deep history of investing in mission-critical, recession-resilient and market-leading businesses, particularly those that exist in highly-fragmented sectors which provide an opportunity to enhance geographic and end market presence as well as customer reach and service offerings through accretive acquisitions.”
“We are incredibly excited to partner with AMCP to continue to build on the strong results we have achieved to date,” said Arcticom CEO Jim Pape. “A&M Capital shares the same culture, values and strategic vision that we have at Arcticom, and brings significant operational and financial resources that help will us execute our strategic growth initiatives while continuing to deliver the same best-in-class services to our customers.”
William Blair and DLA Piper advised Arcticom on the transaction. Kirkland & Ellis provided legal counsel to AMCP.
- Focus: Commercial HVAC and refrigeration (“HVAC-R”) services
- Specific Interest In: Service-based companies working with both Applied and Unitary HVAC and Refrigeration systems focused on commercial and industrial end markets
- Add-On EBITDA: $1-20 million
- Geography: North America
Arcticom is actively seeking add-ons:
About A&M Capital Partners
A&M Capital Partners is Alvarez & Marsal Capital’s flagship investment strategy focused on middle-market control transactions in North America with total assets under management of $2.5 billion. A&M Capital Partners has a strong and referenceable track record of serving as a trusted partner to founders, corporates and management teams, providing the capital and strategic assistance required to take businesses to the next level of success. A&M Capital Partners invests in businesses across a wide range of sectors including Business Services, Industrials, Manufacturing, Food & Beverage, Healthcare, Consumer & Retail, Government Services, Financial Services and Energy Services.
About Alvarez & Marsal Capital
Alvarez & Marsal Capital is a multi-strategy private equity investment firm with over $3.8 billion in assets under management across six funds and four investment strategies. The firm is led by a highly experienced investment team, which is augmented by a strategic association with Alvarez & Marsal (“A&M”), one of the largest operationally-focused advisory firms in the world. Alvarez & Marsal Capital combines a focus on middle-market private equity investing, with deep operational expertise, industry knowledge and global corporate relationships, making Alvarez & Marsal Capital an attractive partner to management teams and business owners. Alvarez & Marsal Capital is headquartered in Greenwich, CT with offices in Los Angeles, CA and London, England. For more information, visit www.www.a-mcapital.com.