Firm to partner with MARS' current
shareholders and management team, which will continue
as equity partners
Transaction extends momentum of Platinum
Equity's Small Cap team
LOS
ANGELES, July 17, 2024 /PRNewswire/ -- Platinum
Equity announced today a significant investment in Motors &
Armatures, Inc. (MARS), a leading distributor of HVAC/R parts,
supplies and equipment in the United
States and Canada.
Financial terms were not disclosed.
Headquartered in Hauppauge, New
York, MARS has served as a key supplier to the HVAC/R
industry for more than 75 years. Founded in 1946 by Sol Chernoff as a motor repair company, MARS has
become a trusted partner to HVAC/R wholesalers across North America.
MARS distributes an extensive line of MARS
and JARD branded aftermarket replacement products, including motors
and other electrical components, as well as the original equipment
components of leading manufacturers. The company's equipment
division offers residential and commercial heating, cooling and
dehumidification equipment under the Comfort-Aire and Century brand
names.
"MARS has established itself as a leader in an evolving HVAC/R
market with several compelling characteristics," said Platinum
Equity Co-President Jacob Kotzubei.
"Growth in the US housing stock, population shifts, changing
weather patterns and energy efficiency mandates are driving demand
for new equipment as well as repair parts. Platinum has substantial
experience helping family-owned businesses leverage our operational
expertise and M&A capabilities to capitalize on market
opportunities and maximize their potential."
The Chernoff family and company management retained a
significant ownership stake in the company, and MARS CEO and President Eddie Chernoff will continue to lead the
business.
"We are proud of the business our family has built over the
years and are dedicated to providing our customers access to
high-quality products and excellent service," said Eddie Chernoff. "The partnership with Platinum
provides us the financial and operational tools to meet the future
demands of our customers and continue our legacy for generations to
come. Platinum understands the dynamic nature of our industry and
is committed to supporting our strategic growth initiatives and the
long-term success of MARS and our distribution partners."
The MARS investment was led by Platinum Equity's Small Cap
team.
"Our research shows MARS is one of the most trusted brands in
the HVAC/R market, known for its in-season availability, quick
delivery, best-in-class warranties, and comprehensive training and
support programs," said Platinum Equity Managing Director
Dan Krasner. "With its talented
employee base and extensive distribution capabilities, we believe
MARS is an excellent platform with significant growth potential. We
look forward to working with management, as well as the company's
customers and suppliers, to introduce new products to the market.
We will also look to expand through additional acquisitions in
adjacent categories where the company does not currently
compete."
R.W. Baird acted as financial advisor to Platinum Equity and
O'Melveny & Myers served as legal counsel on the
transaction.
Tucker, Midis & Associates acted as financial advisor and
Rivkin Radler served as legal counsel to MARS.
About Platinum Equity
Founded in 1995 by Tom Gores,
Platinum Equity is a global investment firm with more than
$48 billion of assets under
management and a portfolio of approximately 50 operating
companies that serve customers around the world. Platinum Equity
specializes in mergers, acquisitions and operations – a trademarked
strategy it calls M&A&O® – acquiring and
operating companies in a broad range of business markets, including
manufacturing, distribution, transportation and logistics,
equipment rental, metals services, media and entertainment,
technology, telecommunications and other industries. Over the past
28 years Platinum Equity has completed more than 450
acquisitions.
Contacts:
Dan Whelan
Platinum Equity
dwhelan@platinumequity.com
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content:https://www.prnewswire.com/news-releases/platinum-equity-invests-in-hvacr-distributor-motors--armatures-302199303.html
SOURCE Platinum Equity