Air Control Concepts Announces Investment from Blackstone

Rhea-AI Summary

Air Control Concepts (AIR), formerly Hobbs & Associates, has announced a new equity investment partnership with Blackstone. This collaboration includes existing investors Madison Dearborn Partners (MDP) and AIR's management team. AIR, headquartered in Norfolk, Virginia, supports leading commercial HVAC OEMs across the United States, operating under various brands.

Brad Hobbs, Founder, President and CEO of AIR, expressed enthusiasm about the partnership, emphasizing the benefits for vendors, customers, and employees. Blackstone's representatives highlighted their sector experience and commitment to AIR's growth. MDP executives reaffirmed their support for AIR's expansion plans.

The existing management team will continue to lead AIR, with management and employees retaining significant ownership. The investment terms were not disclosed. This partnership aims to accelerate AIR's growth while maintaining its foundational values and operational excellence.

Positive

• New equity investment partnership with Blackstone, potentially providing additional resources for growth
• Existing investors (MDP and management team) remain involved, ensuring continuity
• AIR's management and employees retain meaningful ownership, aligning interests
• Expansion of AIR's network, reach, vendor and customer relationships

Negative

• None.

Insights

Financial Analyst

The investment by Blackstone into Air Control Concepts (AIR) introduces significant growth potential for the company. Blackstone's involvement typically signals confidence in the long-term viability and profitability of the investee. From a financial standpoint, this partnership can provide increased capital for expansion efforts, including acquisitions and scaling operations.

While terms of the investment remain undisclosed, the fact that Blackstone has joined existing investors like Madison Dearborn Partners (MDP) implies a strong endorsement of AIR's business model and future outlook. For investors, this translates to potentially enhanced shareholder value as the company leverages these relationships to execute on growth strategies.

Retail investors should watch for subsequent financial reports to gauge the initial impact of this investment. Metrics to monitor include revenue growth, profit margins and capital expenditures. An uptick in these areas could reinforce the positive implications of Blackstone's involvement.

Market Research Analyst

The HVAC industry is poised for significant growth due to increasing demand for energy-efficient solutions and smart technologies. AIR's partnership with Blackstone places it in an advantageous position to capitalize on these trends. Blackstone's expertise and resources in the private equity sector can help AIR not only expand its market reach but also innovate within its product offerings.

Moreover, the strategic alignment with industry leaders through its operating companies like Advanced Thermal Solutions and Airetech Corp further strengthens AIR's market position. The addition of Blackstone's backing is likely to foster enhanced R&D capabilities, potentially leading to cutting-edge HVAC solutions that meet evolving consumer needs.

Retail investors should consider the broader industry dynamics when evaluating AIR's growth potential. The company's ability to utilize this investment to tap into emerging market segments could yield long-term benefits, making it a compelling opportunity for those looking to invest in the HVAC sector.

Blackstone Joins Existing Investors Madison Dearborn Partners and the Company’s Management in Partnering to Support Growth of Air Control Concepts’ Leading Commercial HVAC Solutions Platform

NORFOLK, Va.--(BUSINESS WIRE)-- Air Control Concepts (“AIR”), previously known as Hobbs & Associates, a company that partners with and supports leading commercial HVAC equipment manufacturers, announced today that it will welcome funds managed by Blackstone’s private equity strategy for individual investors (“Blackstone”) as an equity investment partner alongside existing investors, funds affiliated with Madison Dearborn Partners (“MDP”) and AIR’s management team, to help support the continued growth of AIR’s business.

Headquartered in Norfolk, Virginia, AIR supports numerous leading commercial HVAC OEMs across the United States, operating under leading brands including: Advanced Thermal Solutions, Airetech Corp, Bay Associates Group, Inc., C.G. Wood Company, Engineered Building Systems (EBS), Energy Transfer Solutions (ETS), Etairos HVAC, Faulkner Haynes, Hobbs & Associates, Insight Partners, Jobe Industrial, Klima New Jersey, Klima New York, and The Kirkman Oliver Company (TKO).

Brad Hobbs, Founder, President and CEO of AIR, stated: "AIR’s mission is to partner with top commercial HVAC OEMs focused on excellence, innovation, and collaboration. While maintaining our commitment to preserving the cultures and values of each of our operating companies, we’ve successfully grown our network of brands and significantly expanded our reach, our vendor and customer relationships, and our employee base. We are thrilled to welcome Blackstone as an investment partner. We believe our vendors and customers will benefit from the resources and expertise of both MDP and Blackstone, as will the network of operating companies aligned under our corporate name.”

Seth Meisel, Senior Managing Director, and Karl Eber, Managing Director, at Blackstone, said: “We are thrilled to partner with AIR and MDP and help AIR expand even further in the years ahead. Blackstone has deep experience in this sector and we look forward to working closely with AIR’s leadership team to invest behind its further growth for the benefit of AIR’s partners and customers.”

Rich Copans, Managing Director and Head of MDP’s Basic Industries team, and Drew Macha, Managing Director at MDP, added: “We have enjoyed a very successful partnership with Brad and the AIR management team thus far, and we are excited to welcome Blackstone as an investment partner. We look forward to continuing to support the AIR team in accelerating their operating companies’ growth and ongoing success in partnership with Blackstone."

Hayden Bland, COO of AIR, added: “Today’s announcement underscores AIR’s committed support for its operating companies as they continue on their strong growth trajectories. I firmly believe AIR’s companies deliver leading service and differentiated solutions for their customers, and I look forward to working in close collaboration with our partners as we continue to evolve and scale.”

AIR will continue to operate under the leadership of the existing management team and AIR management and employees will retain a meaningful ownership position. Additionally, the leadership teams of AIR’s operating companies will remain the same and AIR’s customers will continue to receive the same high-quality products and service they have come to expect. This continuity helps ensure that the foundational values and operational excellence that define AIR will remain intact.

Terms of Blackstone’s investment were not disclosed. Centerview Partners is acting as the lead financial advisor to AIR and RBC Capital Markets, LLC is also acting as financial advisor to AIR. Kirkland & Ellis LLP is serving as legal counsel to AIR and MDP. Simpson, Thacher & Bartlett is serving as legal counsel to Blackstone.

About Air Control Concepts

Air Control Concepts (“AIR”) is a company that partners with and supports leading commercial HVAC solutions providers. Headquartered in Norfolk, Virginia, AIR maintains high innovation and service standards across its operating companies. Further information is available at www.aircontrolconcepts.com.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

About Madison Dearborn Partners

Madison Dearborn Partners, LLC (“MDP”) is a leading private equity investment firm based in Chicago. Since MDP’s formation in 1992, the firm has raised aggregate capital of more than $31 billion and has completed over 160 platform investments. MDP invests across four dedicated industry verticals, including basic industries, financial services, health care, and technology and government. For more information, please visit www.mdcp.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240715872821/en/

Media:

AIR

Tony Mormino

Phone: 828-712-4769

Email: tmormino@aircontrolconcepts.com

Blackstone

Matt Anderson

Phone: 518-248-7310

Email: matthew.anderson@blackstone.com

Madison Dearborn Partners

Deirdre Walsh / Deven Anand, H/Advisors Abernathy

Phone: 646-965-3079 / 347-585-3117

Email: abmacmdcp@h-advisors.global

Source: Air Control Concepts

FAQ

What is the significance of Blackstone's investment in Air Control Concepts (AIR)?

Blackstone's investment in AIR is significant as it brings additional resources and expertise to support AIR's growth. This partnership, alongside existing investors Madison Dearborn Partners and AIR's management, aims to expand AIR's commercial HVAC solutions platform further.

How will AIR's management structure change after Blackstone's investment?

AIR's management structure will remain largely unchanged. The existing management team will continue to lead the company, and AIR's management and employees will retain a meaningful ownership position. This ensures continuity in leadership and operational excellence.

What brands does Air Control Concepts (AIR) operate under?

AIR operates under several leading brands, including Advanced Thermal Solutions, Airetech Corp, Bay Associates Group, C.G. Wood Company, Engineered Building Systems, Energy Transfer Solutions, Etairos HVAC, Faulkner Haynes, Hobbs & Associates, Insight Partners, Jobe Industrial, Klima New Jersey, Klima New York, and The Kirkman Oliver Company.

How will Blackstone's investment affect AIR's customers and vendors?

According to AIR's CEO, customers and vendors are expected to benefit from the resources and expertise of both Blackstone and Madison Dearborn Partners. Customers will continue to receive the same high-quality products and service they have come to expect from AIR.