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Investcorp buys majority stake in US HVAC firm

Office Building, Building, Architecture Bahrain News Agency
Investcorp’s North American private equity group has completed 70 transactions worth more than $22 billion

Bahrain’s alternative investment firm Investcorp has acquired a majority stake in Shearer Supply, a US-based heating, ventilation and air conditioning (HVAC) equipment distributor, to drive its organic growth and further expansion.

The total investment value was not disclosed.

However, the previous owners, including Shearer’s management team, Shearer family and PNC Riverarch Capital, will “meaningfully re-invest” alongside Investcorp, retaining ownership. 

“Shearer operates in a large, resilient and highly fragmented market driven by non-discretionary replacement demand, which we expect to continue to benefit from strong secular tailwinds,” said Dave Tayeh, head of private equity North America at Investcorp. 

He added the company has an “attractive” southern US geographic footprint, where higher average temperatures and a growing population are increasing the demand for HVAC products.

Investcorp has seen robust activity across its North American private equity platform this year as the firm partners with growing, founder-led businesses that look to scale their businesses.

Dallas-headquartered Shearer is one of the largest independent distributors of HVAC products in the US, serving over 5,500 clients from 22 branches across Texas, Oklahoma, Arkansas, Tennessee and Louisiana. 

Investcorp has financed in value-added specialty distributors across several end markets, including Arrowhead, American Tire Distributors, FleetPirde, Berlin Packaging and Fortune International. 

Investcorp’s North American private equity group has invested in mid-market businesses for over four decades and completed approximately 70 transactions worth more than $22 billion.   

Beyond its US launch, expansion plans also include growing its business in India fivefold in the next five years.