Gryphon Investors (“Gryphon”), a leading middle-market private equity firm, announced today that it has agreed to acquire AirX Climate Solutions (“ACS” or the “Company”), a leading designer, manufacturer, distributor, and servicer of highly engineered, functionally critical products for the specialty heating, ventilation, and air conditioning (“HVAC”) markets.

Gryphon’s investment will support ACS’ exciting growth initiatives, including broadening its geographic footprint, expanding its aftermarket and service offerings, and executing strategic acquisitions. As part of the transaction, ACS’ CEO Rick Aldridge and other members of management will reinvest alongside Gryphon and will continue to manage the Company. Gryphon is acquiring the Company from private equity firm L Catterton, and the transaction is expected to close in the fourth quarter of 2023. Financial terms were not disclosed.

Founded in 1997 and headquartered in Oklahoma City, OK, ACS is a full-service, specialty HVAC solutions provider. The Company offers design, installation, maintenance, and repair of heating, ventilation, and air conditioning systems for specialized solutions across a diverse set of end markets, including telecommunications, data centers, energy storage, rental, educational, industrial, and commercial markets. With a workforce of over 600 people, ACS prides itself on delivering best-in-class service through its highly trained team and engineering capabilities.

“We are excited to invest in ACS and to partner with Rick and the Company’s talented management team,” said Scott Hearn and Leigh Abramson, Co-Heads of Gryphon’s Industrial Growth Group. “We believe ACS, with its longstanding reputation for high-quality products and outstanding customer service, is an ideal platform upon which to further its leadership position in this large and highly fragmented market. We will leverage Gryphon’s deep experience in the HVAC sector through our investments in Right Time and Southern Home Services, along with our successfully realized investment in Heritage Distribution Holdings, to help ACS continue to evolve.”

Mr. Aldridge said, “We are delighted to partner with Gryphon as our next investor. Their depth of knowledge in HVAC and network of executive advisors will open several avenues for our next phase of growth. Our entire team remains fully committed to serving our customers with the highest levels of quality and service.”

Mark Fuller, Managing Director in Gryphon’s Industrial Growth Group, noted, “ACS has a proven track record driven by its strong brands, including Custom Air Products & Services (“CAPS”) and Marvair, and its dedication to innovative customer solutions. We are thrilled to support Rick and ACS’ experienced managers, with whom we will prioritize working closely to both accelerate organic growth and pursue add-on acquisitions.”

As part of the transaction, Messrs. Hearn, Abramson, and Fuller will join the Company’s Board of Directors alongside Mr. Aldridge. The transaction marks Gryphon’s fourth investment in the HVAC value chain and follows the firm’s successful exit of Heritage Distribution Holdings earlier this year.

Jefferies and William Blair served as financial advisors to Gryphon. Baird and Nomura acted as financial advisors to ACS on the transaction. Kirkland & Ellis LLP acted as legal advisor to Gryphon.

About AirX Climate Solutions
ACS provides highly engineered, cooling and ventilation specialized solutions serving mission-critical applications across a diverse set of end markets, including telecommunications, data centers, energy storage, rental, educational, and industrial, and commercial markets. For decades, the Company has been the preferred choice for organizations requiring high-quality and highly configurable HVAC systems operating in harsh environments. With over 600 employees, ACS operates its manufacturing footprint across Houston, TX, Cordele, GA, and Tulsa, OK with brands that include Custom Air Products & Services (“CAPS”), Marvair, Specific Systems, Eubank, Industrial Climate Engineering (“ICE”) and Dynaline. For more information about AirX Climate Solutions, please visit https://airxcs.com/about.

About Gryphon Investors
Gryphon Investors (www.gryphoninvestors.com) is a leading middle-market private equity firm focused on profitably growing and competitively advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, and Software sectors. With approximately $9 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and executives to accelerate the building of leading companies and generate enduring value through its integrated deal and operations business model. Gryphon’s highly differentiated model integrates its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, human capital acquisition and development, treasury, finance, and accounting expertises. Gryphon’s three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $350 million per portfolio company. The Junior Capital strategy targets investments in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon’s targeted investment sectors.

Techmer PM, LLC (“Techmer PM” or “the Company”) announced today that it has received a majority investment from Gryphon Investors (“Gryphon”), a leading middle-market private equity firm. Techmer PM’s founder John Manuck, the Company’s management team, and SK Capital, a private investment firm with a focus on the specialty materials, chemicals, and pharmaceuticals sectors, will remain investors in the company alongside Gryphon. The terms of the deal were not disclosed.

Founded in 1981, Techmer PM is known for its development of innovative materials which add functionality to materials, including fast-growing technologies, such as composites and additive manufacturing. The Company serves customers across a diverse set of global markets serving many leading consumer products and packaging, healthcare, and building product OEMs. Techmer PM CEO Mike McHenry will continue to lead the Company, supported by the existing management team.

“The Techmer team has significantly improved the overall business performance in a very challenging market environment. We are excited by the additional support, expertise, and resources that will come from Gryphon’s investment,” said Mr. McHenry. “We have a number of commercial strategies to expand our offering and deliver first-class service to a diverse customer base, and we believe that Gryphon, alongside SK Capital, gives us additional operational and capital resources to help Techmer maximize its potential in enabling brand success for our customers.”

Techmer PM represents Gryphon’s fourth investment in the materials and chemicals sector. The firm’s previous acquisitions include Pacur, a market-leading supplier of specialty plastic packaging materials for the medical device industry; Kano, a branded penetrating oils and lubricants producer; and Vivify Specialty Ingredients, a leading provider of specialty organic colorants, functional ingredients, and additives.

“With our investment in Techmer PM, we are excited to partner with another leader in the advanced materials space,” said Craig Nikrant, Gryphon Operating Partner. “Techmer PM is at the forefront of delivering functional performance in some of the most critical and active areas of today’s economy, including weather resistance, light-weighting, and sustainable materials.”

Deal Partner and Head of the Industrial Growth Group at Gryphon Leigh Abramson added, “We see great potential for the company to grow its global reach and continue investing in technologies and capabilities that enable its customers to deliver the most innovative and complex projects. We look forward to partnering with Mike, his management team, and SK Capital as we work together to identify and pursue organic growth opportunities and strategic acquisitions.”

Techmer PM operates six production sites strategically located throughout North America, serving customers globally. It focuses on high-performance applications where quality, technical support, and problem-solving are critical in the design and delivery of engineered materials.

Piper Sandler served as financial advisor to Techmer PM in this transaction. Guggenheim Securities served as financial advisor to Gryphon in this transaction.

About Techmer PM
Founded in 1981 and based in Clinton, TN,  Techmer PM is a materials design company specializing in modifying and fine-tuning the properties of technical polymers. The company thrives on collaborating with plastics processors, fabricators, designers, specifiers, and brand owners. Drawing on a broad portfolio of resins –– from polyolefins to PEEK –– Techmer PM helps manufacturers enhance product function and appearance in scores of end-use markets. The firm operates six North American plants and has extensive expertise in virtually every plastic- and fiber-related process, from additive manufacturing and blown film to nonwovens, injection molding, and sheet extrusion. Techmer PM has been recognized six times since 2014 by Plastics News on its list of “Best Places to Work” in North America’s plastics industry. Learn more at www.techmerpm.com.

About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. As of December 31, 2021, the firm has over $9 billion of assets under management. Gryphon targets making equity investments of $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.

About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, specialty chemicals, and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK Capital aims to utilize its industry, operating, and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth, and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $16 billion annually, employs more than 20,000 people globally, and operates 203 plants in 32 countries. The firm currently has approximately $6.6 billion of assets under management. For more information, please visit www.skcapitalpartners.com.

Potter Electric Signal Company, LLC (“Potter”) announced today that Valcom, Inc. (“Valcom”), an established leader in voice paging, intercom and mass notification communications systems, has become a new division within Potter. Potter’s strategic investment in Valcom will allow the business to expand its engineering, marketing, and sales initiatives to drive growth in new applications. With this acquisition, Potter now offers a portfolio that covers the broadest range of emergency communication systems used in commercial projects. Valcom’s range of mass notification systems complements Potter’s fire and life safety offering, including their voice evacuation and emergency responder communication systems.

For more than 40 years, Roanoke, VA-based Valcom has been a leader in the development of communications products that relay information rapidly, enabling individuals in various locations throughout an organization to receive relevant instructions in emergency situations. Valcom enterprise communication systems are especially well suited for educational, retail and government facilities. From simple voice paging and intercom to expansive mass notification for emergency situations, Valcom products and software technology are currently used in thousands of businesses, government agencies, school districts, college campuses and transportation hubs around the world.  Valcom’s management team will continue to lead the company.

Headquartered in St. Louis, MO, Potter is a world-renowned leader in the fire and life safety industry that has been designing and manufacturing fire and security products since 1898. Potter is a portfolio company of middle-market private equity firm Gryphon Investors, which invested in Potter in 2017.

Potter’s CEO, Gerry Connolly, commented, “We have had a longstanding respect for Valcom’s products and culture. With more building owners and facility managers looking to manufacturers to provide better platform and system integration across their mission-critical life safety and communication systems, we see the potential for additional strategic growth given our complementary products and channels. Both companies have invested in IP and cloud-connected platforms, while maintaining intense focus on quality and reliability in the digital era. We are excited to welcome Valcom to the Potter family.”

“Valcom’s long tradition of communication leadership, innovation, and customer care is what has driven us for over 40 years,” said Jack Mason, CEO of Valcom. “We are thrilled to join the Potter organization as our cultures and strategies closely align. Being part of a company with the longevity and reputation of Potter will allow us to drive our business even further.” 

Raymond James represented Valcom in the transaction, and Harris Williams advised Potter.

About Potter Electric Signal Company, LLC
Potter has been a major supplier of key fire and security products since 1898. Since then, Potter’s reputation for quality and service has been the catalyst towards its focus for the design, development, and manufacture of the highest quality and most reliable life safety products available today. Potter is an active participant in the advancement of life safety, fire protection and building codes, globally, in support of the IFC, NFPA, EN and other international agencies. Potter, headquartered in St. Louis, Missouri, is a world-renowned leader in various life safety industries including IP-Based Fire Alarm Systems, Voice Evacuation, Sprinkler Monitoring, Corrosion Solutions, and Emergency Responder Communication Enhancement Systems (ERCES). Potter is a portfolio company of middle-market private equity firm Gryphon Investors.

About Valcom 
Established in 1977, Valcom, Inc. is a leader in design and manufacture of loudspeaker paging, IP-centric mass notification systems and visual messaging. Valcom provides leading-edge technology, hardware and software solutions to meet the specific needs of various industries including K12, higher education, hospitals, and airports, commercial and industrial facilities. 

About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. The firm has managed over $7.50 billion of equity investments and capital since 1997. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.