Dallas HVAC Company Gets Majority Investment from New York-Based Firm

Investcorp, a global alternative investment firm, partners with growing founder-led businesses. The investor aims to join forces with Shearer Supply to capitalize on "strong secular tailwinds" in the HVAC industry and leverage the distributor's one-stop-shop value proposition for contractors and OEMs.

Dallas-based Shearer Supply has received a majority investment from Investcorp, a New York City-based global alternative investment firm.

Shearer Supply is an independent distributor of heating, ventilation and air- conditioning equipment for residential and commercial properties in the southern United States. Its management team, the Shearer family, and PNC Riverarch Capital will remain shareholders alongside Investcorp, the company said.

Financial terms of the deal were not released.

“Investcorp has an established history of working with companies like Shearer and have demonstrated a strong track record in HVAC and specialty distribution,” Michelle Shearer-Rodriguez, CEO at Shearer Supply, said in a statement. “We are looking forward to partnering with them on our next phase of growth and leveraging their strong industry insights.”

‘Partnering with growing founder-led businesses’

Shearer was founded in 1983 and is one of the nation’s largest independent distributors of HVAC equipment, parts and supplies serving over 5,500 customers from 22 branches across Texas, Oklahoma, Arkansas, Tennessee, and Louisiana.

Shearer’s core product lines include American Standard Residential and Commercial HVAC, Ameristar Heating and Air Conditioning, and Samsung HVAC.

“Shearer operates in a large, resilient and highly fragmented market driven by non-discretionary replacement demand and will continue to benefit from strong secular tailwinds including an aging housing stock, shortening replacement cycles and favorable regulation, in addition to its attractive Southern US geographic footprint. We are excited to partner with the Shearer family to drive organic growth and further expansion,” Dave Tayeh, head of private equity – North America at Investcorp, said in a statement. “We have experienced robust activity across our North American Private Equity platform this year, underscoring the strength of our strategy in partnering with growing, founder-led businesses as they look to scale their businesses.”

Steve Miller, managing director, private equity – North America at Investcorp, said that Shearer “provides a compelling value proposition for both contractors and original equipment manufacturers, acting as a one-stop-shop local partner with a breadth of products, expertise and value-added services.”

Miller added, “This is an impressive family-owned and run business that has differentiated itself in its ability to scale and grow in excess of the market throughout its history and we are thrilled to be partnering with the Company’s highly motivated management team.”

Focusing on control buyout investments

Investcorp has experience in the HVAC industry and specialty distribution, with investments including Arrowhead, ATD, Berlin Packaging, and The Wrench Group.

The acquisition of Shearer follows the final closing of Investcorp North American Private Equity Fund I, LP, which focuses on control buyout investments in middle market service businesses in North America.

Investcorp said that Fund I closed at more than $1.2 billion in capital commitments.

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