The call to the local heating and air conditioning place is usually one made only under duress. The heat’s off. The air went out. It’s way too hot or way too cold — and you need help.
You might have a vendor you’ve used for years. Heard the jingles on the radio. Saw the trucks rolling around town.
But in the last few years, out-of-state private equity firms have quickly snapped up home service contractors – including many in the Treasure Valley.
Last year, the Wall Street Journal reported that private equity firms were scooping up small HVAC and plumbing firms across the country. The WSJ said the business roll-ups can improve margins and add efficiencies to businesses, and can mean higher prices and less competition.
A BoiseDev examination of merger and acquisition activity in the heating, ventilation, and air conditioning space shows several long-time locally-owned players are now in out-of-state hands.
Diamond Heating and Cooling
Founded in 1999 by Rick and Sue Ellen Montgomery, Garden City’s Diamond Heating and Cooling is now a unit of Salt Lake City, UT-based Intermountain Home Services.
Diamond was acquired in 2021 by Bestiage, a private equity firm based in Park City, UT, and folded into its Intermountain Home Services Unit.
Master Plumbing
Master Plumbing launched in 1948 in Meridian by Claude Rackham as Master Rooter, and was operated by CEO Lance Rackham as of 2022.
The company touts being “your local, family-owned plumbing company” on its website, and says it is locally owned. As of August 2022, Master Plumbing has been sold, according to the 2022 Idaho Deal Flow Report.
Like Diamond Heating and Cooling, Master Plumbing was purchased by Bestige of Park City, Utah, and rolled into its Intermountain Home Services division along with a dozen other companies in the region.
Western Heating and Air
If you’ve been around Idaho long, you’ve likely heard the Western Heating and Air jingle. The company started in 1967, founded by Bill R. Willhite, Bob R. Barnes, and MA Smith, according to Idaho Secretary of State records.
In 2021, after 54 years of local ownership, Western Heating & Air sold a majority stake to Washington-based private equity firm SEER Group. SEER lists more than 40 companies in the HVAC, mechanical, and plumbing service categories under its umbrella – including six others across Idaho.
Without members like you, this story wouldn’t exist.
Get our members-only private email & more.
Use code THANKS to save $30 on any annual plan.
“We chose to partner with The SEER Group because it gave us the opportunity to continue our operations as we have in the past and to keep changes to a minimum, Bob Barnes said in a news release in 2021. “As we celebrate this opportunity, we look forward to assisting in the growth of the group and to many more years of success.”
Last year, SEER announced it acquired Boise-based Veterans Plumbing and K-F Electric. Veterans was merged into Western in March of this year, according to Idaho Secretary of State records.
Owyhee Heating & Air Conditioning
Owyhee Heating & Air was founded in 1946 as Owyhee Sheet Metal by Lloyd McLaughlin in Homedale, later moving to Nampa.
Owyhee was acquired in 2022 by Apex Service Partners of Texas, joining Right Now Heating and Air Conditioning under the umbrella of the large private equity company.
Apex says it employs 7,800 people across 45 states.
Right Now Heating and Air Conditioning
Right Now was founded in 2006 by Jeff Cox, according to Secretary of State records.
In 2021, Apex Service Partners of Texas acquired Right Now, according to PitchBook, joining Owyhee Heating as units of Apex.
Secretary of State records indicate Apex folded Right Now into its Apex West Region Holdco, based in Tampa, Florida.
Perfect Plumbing & Air / Magic Electric
Perfect Plumbing & Air of Boise and its sister company, Magic Electric of Jerome, were acquired by Utah-based Any Hour Group in 2022. Any Hour owns 23 brands across the region.
Any Hour is backed by San Francisco private equity firm Knox Lane.
Ultimate Heating & Air
Ultimate Heating & Air was founded in 2000 in Kuna, and now operates from Meridian.
In 2022, SE Capital of Chicago first invested in Ultimate, taking an undisclosed stake in the company.
