What We’re Reading

Highview-Backed National Fire & Safety Acquires RCI


National Fire & Safety, a leading end-to-end fire protection and life safety solutions platform and a portfolio company of Highview Capital (“Highview”), acquired of RCI Systems, Inc. (“RCI”), a leading contractor of fire-sprinkler services headquartered in the greater Phoenix area. The acquisition further demonstrates National Fire & Safety’s commitment to expanding its geographical footprint through acquisitions. Greg Londo, CEO of National Fire & Safety commented “…RCI’s leading reputation in a geographic region that is growing by leaps and bounds – the greater Phoenix area – makes RCI a fantastic addition to the National Fire & Safety family.”

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First Point Mechanical Acquired by Reedy Industries (Audax)


Reedy Industries, a Glenview, Illinois-based provider of HVAC and other mechanical services backed by Audax Private Equity, has acquired the assets of First Point Mechanical Services, a Illinois-based company that maintains, installs, repairs and replaces HVAC and mechanical equipment. The First Point acquisition marks the fifth of its kind for Reedy Industries so far in 2019. The acquisition adds density, services, accounts, and scale to the Reedy Industries platform.

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CoolSys (Ares Management) Acquires Building Air Services


CoolSys, a parent of market-leading refrigeration and HVAC services companies nationwide, has announced the acquisition of Building Air Services, a provider of service and preventive maintenance programs for commercial air conditioning, heating, refrigeration and automated building controls. Adam Coffey, CEO of CoolSys, stated “As a leading HVAC-R provider in the Southeast Region, Building Air Services shares our commitment to putting customers’ needs first and delivering the highest quality services possible. We look forward to serving new customers throughout the Southeast region and expanding our light-commercial division as a result of this strategic acquisition.”

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What We’re Hearing

Excerpts From Recent Earnings Calls


“From an M&A perspective, there's not really any business that's off limits, per se. I mean we'll look at targets broadly, and we look for things like strategic opportunity, strategic fit, cultural fit. And then of course, economics, and so you go through valuations, they're higher, they're lower, it depends by the industry. But we are consistently good users of share owner capital. And so that's how we think about M&A. And we do a lot of $30 million and $50 million deals that add up to $300 million to $500 million of roll-ups each year. And then probably most attractive [industries] are food and health care and water. Those are big bases, those are big growth engines for us, and there are attractive M&A candidates out there that we're always evaluating.”

– Jill S. Wyant, Executive VP and President of Global Regions & Global Healthcare (9/25/2019)



“So from an M&A perspective, we love M&A in the businesses that we're currently in. Anything from a tuck-in in our fire, first-aid and uniform rental businesses to something larger. If there were any M&A opportunities in our space, we certainly want to be involved and would have a great interest in pursuing that at the right value. From a geographic standpoint, [we like] acquisitions in the U.S. and Canada because we have a presence here and it allows us to get density in markets to combine capacity if opportunities present themselves. So would prefer acquisitions where we can capture better synergies.”

– J. Michael Hansen, CFO & Executive VP (9/24/2019)

Public Comparables - Market Performance

Public Comparables 5-Year Price Index (‘14-’19)*


Public Comparables TEV/LTM EBITDA (‘14-’19)*


As of October 11, 2019

Source: S&P Capital IQ

Public Comparables

Facility & Field Services


Environmental Services


Property Management


Safety & Security


Waste Management


Testing, Inspection & Certification


Information included in this industry update was sourced from S&P Capital IQ.


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