Rogers Mechanical Adds-On Again

Rogers Mechanical Contractors, a portfolio company of Aterian Investment Partners and Craft Work Capital Partners, has acquired Coastal Mechanical Services.

Aterian partnered with Craft Work Capital (Aterian/Craft Work) in 2019 to make investments in the mechanical and electrical contracting industries. In September 2020, Aterian/Craft Work made its first acquisition with the buy of Rogers Mechanical, a Georgia-based provider of plumbing and HVAC services to distribution companies, manufacturers and industrial customers. In March 2021, the platform closed its first add-on acquisition with the buy of R&D Mechanical Services, a Georgia-based provider of commercial HVAC maintenance, repair, and retrofit/replacement services.

Coastal Mechanical, Rogers’ second add-on acquisition, is a provider of HVAC and plumbing contracting services including design, engineering, drafting, fabrication, and installation. Many of Coastal’s customers are active in the healthcare, education, aerospace and defense markets. Coastal, led by President Jeff Geiger, was founded in 1985 and is headquartered southeast of Orlando in Melbourne, Florida.

“We could not be more excited about partnering with Rogers management to build upon our collective growth plans,” said Mr. Geiger. “While we will continue to operate under the Coastal brand, we are excited about the opportunity to leverage best practices across our organizations to help better serve our customers. We are strong believers in the strategic growth plan that Craft Work and Aterian developed alongside Rogers, and we are thrilled to partner with such a high caliber team at Rogers and to execute on that vision.”

“We are excited to complement Rogers with a strong Florida presence, and the highly skilled and cohesive team with the addition of Coastal,” said Michael Fieldstone, a co-founder and a partner at Aterian. “Combined, the businesses are leaders servicing the high-growth end markets of distribution centers, healthcare, and education. We look forward to supporting management’s organic growth plan as well as executing on additional strategic acquisitions.”

Aterian invests up to $70 million in small-to-middle market businesses with $50 million to $500 million in revenues and up to $50 million in EBITDA. The firm’s sectors of interest include industrials, niche manufacturing, chemicals and material sciences, industrial and business services, value-added distribution, transportation and logistics, and consumer products and services. Aterian held a final closing of Aterian Investment Partners III LP with $350 million of committed capital in July 2018.

New Jersey-based Craft Work Capital was founded in November 2018 by Jeremy McGuire and Dave Orinski . The two founders previously worked together at Texas-based Talen Energy and Pennslyvania-based PPL (formerly Pennsylvania Power & Light).

“We are thrilled to have closed our second add-on to the Rogers platform since partnering with their team,” said Daniel Phan, a principal at Aterian. “We believe Jeff and his team will make a great addition to the Rogers platform as we continue to expand our footprint nationally.”

Fifth Third Securities, Plante Moran, and Foley & Lardner were the advisors to Coastal on this transaction. FMI Capital Advisors was the financial advisor to Aterian, Craft Work and Rogers.

© 2021 Private Equity Professional | June 8, 2021