Acquirers ‘feel the heat’ over HVAC acquisitions

As well as plenty of sunshine, the recent heatwave again highlighted the essential work of Britain’s HVAC companies. From hospitals to large corporate offices, manufacturing plants and engineering workshops, the demand for HVAC services remains strong.

It is not only the sector’s diverse and sizeable client base that is placing significant demands on HVAC and other associated ‘Hard FM’ focused companies, there are also a range of strategic and financial buyers, including Private Equity firms, that are very keen on acquiring in the sector.

The deal team at EvolutionCBS can point to its own experience of strong demand in the HVAC Sector, when it led the sale of Synecore Limited to H.I.G. Capital (“H.I.G.”), a leading global alternative asset investment firm with £44 billion of equity capital under management, (the terms of the deal were not released).

With a strong pedigree in their sector, Synecore Limited is a leading provider of specialist Mechanical and Electrical servicing and maintenance in the South-East of England, with expertise in HVAC, Refrigeration, Electrical Design and Installation, Air Conditioning, Air purifiers, Refrigeration and Cold Rooms, combined with a full suite of services and maintenance works.

Steve Barry, Senior Client Director at EvolutionCBS, who led the sale, comments on the demand for ‘Hard FM’ and HVAC companies:

“There is strong market demand for acquisitions in the ‘Hard FM’ and HVAC sectors, driven by various factors, including the need to optimise energy efficiency and the increasing integration of the Internet of Things (IoT) technology. Our team focused on managing the entire sale process, facilitating negotiations and latterly due diligence in a competitive process where there was notably strong interest in the opportunity right from the start.”

EvolutionCBS is engaging regularly with international acquirers actively seeking acquisitions in the UK, including those seeking companies offering HVAC, ‘Hard’ and ‘Soft’ Facilities Management and related technical services.

In one example, our Deal Team engaged with a multinational organisation, headquartered in Western Europe, with revenues in excess of £10bn. This acquirer is actively seeking UK acquisition targets, has significant cash on their Balance Sheet in excess of £2bn and is in close contact with the EvolutionCBS team. Crucially, this organisation is very interested in HVAC and Facilities Management companies in the UK, to support their strategic objectives in the UK and Europe.

An analysis of 29 company sale transactions from the start of the decade involving HVAC and facilities management companies, has revealed a diverse range of acquirers. Both Private Equity firms and very large Property Services and Facilities Management organisations are clearly shown to be active in the sector.

North American acquirers also feature in British deals, with both USA and Canada-based organisations having completed transactions, purchasing companies active in critical building services, such as plumbing, heating, air-conditioning, refrigeration, mechanical and electrical maintenance, and energy systems services.

One headline-grabbing deal, the 2021 acquisition of Pimlico Plumbers, Central London’s leading independent maintenance company, by USA-based Neighborly, Inc. the world’s largest franchisor of home service brands, highlights both the demand in the space and the attractiveness of Britain for overseas investors.

Mike Bidwell, President and CEO of Neighborly, commented on the transaction:

“We are thrilled to be growing our global footprint with the addition of Pimlico as the next subsidiary brand to join our global family of home service professionals. We are excited for the growth to come for both Pimlico and Neighborly as a result of this acquisition.”

It’s worth noting that the UK market remains attractive to multinationals and financial buyers alike, despite economic headwinds in the form of higher inflation and the impact of the Russia-Ukraine war. This strong demand for acquisitions from diverse types of acquirers, could mean the time could be right for HVAC and FM company owners, who want to explore a sale to test the market.



As a long-established premium provider of business sale advisory services to UK businesses, EvolutionCBS offers business owners a complimentary and confidential discussion on how their specific objectives could be met and provides pragmatic, practical advice on how to begin preparing both themselves and their businesses for future sale or investment. 

EvolutionCBS works with owners of UK businesses in any sector, finding buyers from around the world through highly targeted research and supporting clients with dedicated Director-led teams, at every stage of their journey to a successful sale or investment. 

If you are an owner or shareholder of a business and would like a no-obligation consultation on the sale of all or part of your business, please email: or contact us on Tel: 0118 959 8224.

Comments are closed.

© 2024 Evolution Complete Business Sales Ltd.

  Keep me updated

Dear visitor. Please subscribe if you'd like to receive updates and events on selling or buying a business

* we hate spam and never share your details.