Huron Capital Completes the Sale of Pueblo Mechanical & Controls
Sale marks Huron’s fourth exit in the last year and highlights the strength of its sector focus and repeatable M&A playbook
DETROIT, Mich. (August 24, 2022) — Leading middle-market private equity firm, Huron Capital (“Huron”), announced that it has sold a majority interest in Pueblo Mechanical & Controls (“Pueblo”), a premier commercial HVAC and plumbing services company, to OMERS Private Equity (“OMERS”).
Headquartered in Phoenix, Arizona, Pueblo is a provider of HVAC and plumbing installation, maintenance, retrofit and repair services to customers in multiple end markets, including education, municipal, industrial, commercial and healthcare.
Recognizing notable secular trends in the industry and leveraging its network and experience in other facility services investments, Huron partnered with seasoned industry veteran Dan Bueschel to pursue an ExecFactor buy-and-build strategy in commercial HVAC and plumbing in the Sun Belt and Rocky Mountain regions of the United States.
Scott Hauncher, Partner at Huron said, “We acquired Pueblo because we believed demand for HVAC repair and installation services would increase and the sector was ripe for consolidation. Since then, regional population growth, aging infrastructure, energy efficiency and sustainability have driven demand for Pueblo’s services.”
Since Huron’s initial investment in 2017, Pueblo has made significant investments in people, technology, and corporate infrastructure, including the development of a deliberate regionally focused M&A program. Over the past several years, Pueblo experienced strong organic growth and completed 16 acquisitions becoming a premier, scalable, enterprise-level platform across the Southwest and Rocky Mountain regions. These efforts resulted in a greater than four-fold increase in revenue and EBITDA transforming Pueblo from a single state HVAC operator to a leading super-regional provider of technical services in five states poised to continue its growth strategy under OMERS ownership.
Dan Bueschel, CEO of Pueblo said, “We have a clear focus to become one of the largest independent technical services operators in the US by leveraging a scalable platform with an experienced and aligned management team. Due in large part to the investments we made in the systems and team, in addition to leveraging Huron’s demonstrated M&A playbook, we executed and integrated numerous acquisitions including six in 2022 alone.”
Huron’s Hauncher said, “We have been extremely proud to support Dan and his team over the last five years. Under Dan’s leadership, Pueblo is poised for continued expansion through M&A, and we look forward to following their success under OMERS’ ownership.”
The sale of Pueblo is Huron Capital’s fourth platform exit in the last twelve months.
Moelis & Company served as financial advisor and Perkins Coie LLP served as legal advisor to Huron and Pueblo.
About Huron Capital
Huron Capital brings a people-first and thematic approach to private equity investing in secularly relevant and fragmented sectors of the North American services industry. We pride ourselves on an unwavering commitment to candor, trust, accountability and transparency in our relationships with management teams, investors, advisors and employees.
Founded in Detroit in 1999, we partner with entrepreneurs and management teams, empowering their companies to new levels of excellence. We provide resources to help companies grow by professionalizing operations, improving service offerings, executing M&A strategies and accessing new markets.
Huron Capital has managed over $1.8 billion on behalf of a global institutional investor base. We fulfill our commitment to all stakeholders by employing a repeatable playbook to drive thoughtful value creation, showcased in over 250 acquisitions since the firm’s inception.
About Pueblo Mechanical & Controls
Pueblo Mechanical & Controls performs a broad offering of HVAC and plumbing maintenance, replacement, retrofit, repair, and installation services for commercial facilities, school districts, governmental agencies, and other end markets throughout the Southwest and Rocky Mountain regions. The company was founded in 2001 with a focus on delivering the highest-quality execution and customer service. Pueblo has an over 20-year history of consistently performing work while demonstrating honesty, dedication, and integrity, resulting in strong, long-lasting customer relationships. For more information, please visit: www.pueblo-mechanical.com.
Certain information herein may contain forward-looking statements which are provided to assist the reader in understanding the beliefs and opinions with respect to future opportunities as perceived by Huron Capital and others quoted herein. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance in future periods to differ materially from any projections or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The issuer of these statements undertakes no obligation to update forward-looking statements if circumstances or estimates or opinions should change except as may be required by applicable securities laws.