Charlesbank Capital Partners Acquires American Residential Services LLC
BOSTON, MA - Charlesbank Capital Partners announced today that it has acquired American Residential Services (ARS), a leading provider of heating and air conditioning (HVAC) and plumbing services nationwide. Headquartered in Memphis, Tennessee, ARS operates a network of more than 60 locally managed branches in 21 states. Charlesbank purchased the company from CI Capital Partners and its co-investor, Royal Palm Capital Partners, along with the existing management team, who made a significant co-investment in the transaction. Terms of the transaction were not disclosed.
With a team of 4,500 trained technicians, ARS primarily serves homeowners in need of emergency repair and replacement services for heating, air conditioning, energy efficiency, plumbing, drain cleaning and sewer lines. The company is dedicated to providing high-quality customer service, with an emphasis on highly skilled employees, state-of-the-art equipment, 24/7 service and a 100% money-back guarantee. It operates under two well-known national brands, ARS and Rescue Rooter, as well as through trusted local brands in select markets.
"We look forward to accelerating the growth of our business with new capital and are excited to be working with Charlesbank for the next stage of our development," said Don Karnes, Chief Executive Officer of ARS.
"CI Capital Partners has been an excellent partner since we acquired ARS together and, with their backing, we significantly improved the company's profitability and completed over 20 acquisitions. Today, we are well-positioned to invest in our branches, provide outstanding customer service, and continue our strategy of acquisitions in this highly fragmented industry, while benefiting from Charlesbank's support as we continue to build the business," added David Slott, President & Chief Operating Officer of ARS.
Mr. Karnes is a consumer services industry veteran who has been at the helm of ARS since 2006, serving alongside Mr. Slott. Both executives have 32 years of consumer service industry experience. "We are excited to invest in ARS with this very talented management team," said Sam Bartlett, Charlesbank Managing Director. "Don Karnes and Dave Slott have built a company with a strong business model and a reputation for excellent customer service, thanks to the high-caliber, dedicated employees throughout the organization, including its many branches. With this solid foundation we believe the business is well-developed to grow in new and existing markets, and we look forward to supporting the company's accelerated growth plans."
Tom Ritchie, Managing Director at CI Capital, added, "The ARS management team has done a terrific job developing the company internally and fortifying its strong industry position. This transaction marks the end of a rewarding investment for us, and we wish ARS every success as it begins its next chapter."
Berenson & Company and Paul, Weiss, Rifkind, Wharton & Garrison LLP advised ARS for this transaction. Memphis-based Metronome Partners, RBC Capital Markets and Goodwin Procter LLP advised Charlesbank.