Kelvin Group Expands Its Reach by Acquiring PermaCold Engineering
Kelvin Group, known for its outstanding services in industrial and commercial mechanical refrigeration, has recently completed the strategic acquisition of PermaCold Engineering, Inc. This acquisition marks a significant growth milestone for Kelvin, affirming its status as a key player in providing mission-critical services.
History and Reputation of PermaCold Engineering
PermaCold Engineering has earned a remarkable reputation in the industrial refrigeration sector, founded over three decades ago by innovators Steve Jackson and Randy Cieloha. They have become synonymous with excellence, reliability, and innovative solutions, particularly in ammonia and CO2 refrigeration systems. Their ability to deliver tailored, high-performance systems has made them a trusted partner for numerous clients in the western regions of the United States.
Integrating PermaCold into Kelvin's Operations
This acquisition not only enhances Kelvin's portfolio but also integrates PermaCold into a family of respected brands, including ARC Mechanical and RS&D. This integration highlights Kelvin's ongoing strategy to expand its footprint and capabilities in the mechanical services market.
CEO Harry Gray's Perspective
Harry Gray, the CEO of Kelvin Group, expressed enthusiasm about the acquisition, emphasizing the shared mission and values between Kelvin and PermaCold. He stated that this partnership allows for an augmented service offering that will benefit a broader customer base across the nation.
Commitment to Core Values
Steve Jackson reiterated the importance of shared values and culture during the transition. He mentioned that finding a partner like Kelvin was essential not just for business growth but also for maintaining the company's integrity and commitment to its clients and employees.
Enhancing Industry Position
The addition of PermaCold Engineering into Kelvin Group's operations significantly boosts its geographical reach, transitioning Kelvin into a coast-to-coast provider of mechanical services. Southfield Capital, which oversees the growth of Kelvin, views this transaction as a pivotal step toward realizing broader operational goals.
Financial Aspects of the Acquisition
In terms of financing, Deerpath Capital Management and Crescent Capital played pivotal roles by providing the necessary debt financing to facilitate the acquisition. Additionally, G2 Capital Advisors acted as buy-side advisors for Kelvin, while legal services were offered by Finn, Dixon & Herling.
About Kelvin Group
Kelvin Group stands out as a national frontrunner in delivering industrial and commercial mechanical services. Their expertise lies in providing comprehensive solutions that encompass design, installation, servicing, and compliance testing for mechanical systems in various sectors, including food and beverage, healthcare, and pharmaceuticals. Clients of Kelvin can count on their dedication to upholding health, safety, and regulatory compliance standards.
About Southfield Capital
Southfield Capital is a recognized name in private equity, focusing on high-growth lower middle market companies within the business services industry. By targeting firms with substantial EBITDA, Southfield collaborates closely with management to drive growth through both organic avenues and strategic acquisitions.
Frequently Asked Questions
What is the significance of Kelvin Group's acquisition of PermaCold?
The acquisition enhances Kelvin’s capabilities and geographical reach, allowing it to serve clients better across the United States.
Who are the founders of PermaCold Engineering?
PermaCold was founded by Steve Jackson and Randy Cieloha, who have established a strong reputation in the refrigeration industry.
What sectors does Kelvin Group serve?
Kelvin Group provides services to various sectors, including food and beverage, pharmaceuticals, healthcare, and education.
What role did Southfield Capital play in this acquisition?
Southfield Capital facilitated the acquisition by partnering with Kelvin Group and providing financial support for the transaction.
What can clients expect from the integration of PermaCold into Kelvin Group?
Clients can expect enhanced services and solutions, benefiting from the combined expertise and resources of both companies.
