Caltius Equity Partners Announces Majority Recapitalization of ACIS
December 22, 2021
Los Angeles, CA (December 22, 2021) – Caltius Equity Partners, a leading lower middle-market investment firm, has completed a recapitalization of its investment in Air Conditioning Innovative Solutions (“ACIS” or the “Company”) to Atlantic Street Capital (“Atlantic Street”). Caltius Equity Partners will continue to be an investor in ACIS and will remain on ACIS’ board of managers. The transaction closed on December 3, 2021; financial terms were not disclosed.
Founded in 2002, ACIS is a leading provider of commercial heating, ventilation, and air conditioning (“HVAC”) services throughout Texas. Caltius Equity Partners first partnered with ACIS in 2019, seeing an opportunity to invest in a regional leader and commercial HVAC innovator with significant recurring revenue. Michael Morgan, Caltius Equity Partners managing director, stated, “As ACIS’ first institutional investor, it has been exciting to see the Company’s rapid evolution and we look forward to continuing our investment alongside Atlantic Street’s majority position.”
Over the course of its investment period, Caltius Equity Partners partnered with ACIS in successfully delivering strong top-line growth, building a high-quality management team, and investing in technology and processes to improve efficiencies and scalability. Additionally, Caltius Equity Partners assisted the Company in completing two add-on acquisitions and developing a significant pipeline of additional acquisition opportunities.
“Caltius Equity Partners has been an excellent advisor and partner as the company has grown,” said Mike Nichols, CEO of ACIS. “Their long history as investors in facilities services companies helped us refine operating processes, go-to-market strategies, and build out the management team. We are grateful for Caltius Equity Partners’ partnership in growing the business, and look forward to executing on the next phase of our strategic plans alongside Atlantic Street.”
Morgan continued, “We believe our experience with ACIS is a great example of Caltius Equity Partners’ sourcing capabilities, investment strategy, and working closely with management create value for all stakeholders. Atlantic Street is a great partner for ACIS as they too, like Caltius Equity Partners, are focused on helping companies grow faster to reach their full potential. We wish Mike and the rest of the ACIS team continued success during the next phase with Atlantic Street.”
Citizens M&A Advisory acted as financial advisor and Faegre Drinker acted as legal advisor to Caltius Equity and ACIS. More information about ACIS can be found on its website.