CPE News (12/30/2020) – Gryphon Investors has acquired Right Time Heating and Air Conditioning Canada Inc. (Right Time HVAC) from Clairvest Group Inc. and management shareholders. Financial terms of the transaction were not disclosed.
Founded in 2014, St. Catharines, Ontario based Right Time HVAC is the largest independently owned residential HVAC services provider in Canada with a focus on preventative maintenance programs and repairs and replacements of HVAC units. The company is comprised of 10 brands and operating out of 11 locations in Ontario, Manitoba, and British Columbia with 400 employees.
Right Time’s management led by Jeremy Hetherington and Lauren Goettler will remain with the company and retain a significant equity stake.
In November 2018, Clairvest Group and Clairvest Equity Partners V funds invested $21.3 million in Right Time Heating and Air Conditioning for 49.3% ownership, valuing the company then at $42.5 million.
San Francisco, California based Gryphon Investors is a middle-market private equity firm targeting equity investments of US $50 million to US $300 million in portfolio companies with enterprise values ranging from US $100 million to US $600 million.
photo credit: Right Time Heating and Air Conditioning
Gryphon Investors Completes Majority Investment in Right Time Heating and Air Conditioning
Identifies Strong Growth Path & Large Market Opportunity for Canada’s Leading Residential HVAC Installer
SAN FRANCISCO, Dec. 30, 2020 /PRNewswire/ — Gryphon Investors (“Gryphon”), a leading middle-market private equity firm, today announced that it has acquired Right Time Heating and Air Conditioning (“Right Time” or the “Company”) from Clairvest Group Inc., a Canadian private equity firm. Right Time’s management will remain with the Company and retain a significant equity stake. Financial terms of the transaction were not disclosed.
Founded in 2014 and headquartered in St. Catharines, Ontario, Right Time is the largest independently owned residential HVAC services provider in Canada with a focus on preventative maintenance programs and repairs and replacements of HVAC units. The Company comprises 10 brands and operates out of 11 locations in Ontario, Manitoba, and British Columbia with 400 employees.
Alex Earls, a Deal Partner at Gryphon and Head of its Business Services Group, said, “We are excited to partner with Right Time and to support its management team as they continue executing their growth strategy both organically and through add-on acquisitions. Right Time’s management team has built the Company into the largest independent provider of HVAC services and an acquiror of choice in Canada, making it a strong fit for Gryphon’s investment strategy which focuses on partnering with market leaders with sustainable differentiation.”
Jeff Balagna, Exclusive Executive Advisor to Gryphon Investors and former CEO of Sears Home Services, will become Chairman of the Company. Right Time co-founder and CEO Vaughn Goettler will become Vice Chairman, while co-founder and President Jeremy Hetherington has been named CEO of the Company. Mr. Earls will join the Board of Directors along with Mr. Balagna and Ian McKeen, the former President & COO of Service Experts, a leading provider of HVAC and plumbing services in Canada and the United States.
Mr. Balagna commented, “Right Time has quickly made a name for itself in this industry with solid organic growth and a clear acquisition strategy that is achieving scale and propelling its expansion in a highly fragmented market. We are pleased to support Vaughn, Jeremy, and the team as the Company continues to expand throughout Canada.”
Mr. Hetherington stated, “Our business has been built on providing premium service and customer experience to homeowners with non-deferrable needs, and we expect that demand to continue. We are excited to partner with Gryphon as we continue to expand geographically and through acquisitions as well as provide additional services to our existing customers.”
Mr. Goettler added, “We are grateful for the strong partnership we enjoyed with Clairvest, and we look forward to continued success working with Gryphon.”
BMO acted as financial advisor to Gryphon and Moelis acted as the financial advisor to Right Time. Blake, Cassells & Graydon and Kirkland & Ellis acted as legal advisors to Gryphon, and Torkin Manes acted as legal advisor to Right Time.
About Right Time
Right Time is the leading Canadian independent heating, ventilation and air-conditioning (“HVAC”) contractor focused strictly on the residential replacement market. Right Time operates out of 11 locations in Ontario, Manitoba, and British Columbia with 400 employees and provides preventative maintenance programs, repairs and replacements of household HVAC units.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. The firm has managed over $5.0 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.
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SOURCE Gryphon Investors