Gamut Capital Management, a private equity firm specializing in middle market investments, has reached a definitive agreement to purchase Airtron Heating & Air Conditioning from NRG Energy, Inc. (NYSE: NYSE:NRG).
Airtron is an HVAC system provider with operations across numerous metropolitan areas in the United States. It serves homebuilders and provides a broad product range and comprehensive service capabilities, including ongoing maintenance services. The company has a significant footprint in the residential new construction HVAC sector, serving 13 metropolitan statistical areas in Texas, the Midwest, and Mid-Atlantic regions.
Jeff Morrow, who has been with Airtron for over two decades, will lead the company as CEO. Morrow expressed gratitude to NRG for its support and conveyed enthusiasm about entering a new growth phase with Gamut.
He emphasized the team's commitment to enhancing customer and supplier relations and expanding service offerings through strategic investments and acquisitions.
Michael Hanigan, Partner at Gamut, highlighted the potential for growth and value creation in Airtron's future as a standalone entity. He noted the company's established market presence and the strategic initiatives aimed at solidifying its role as a full-service HVAC installation and maintenance provider.
While the financial details of the acquisition remain undisclosed, the transaction is subject to customary closing conditions.
Current Capital Partners LLC and Kirkland & Ellis LLP respectively served as financial advisor and legal counsel to Gamut in the deal.
Founded in 1972, Airtron has built a solid market position by providing professional installation services executed by certified technicians and offering comprehensive maintenance plans. Gamut Capital Management, with over $3.5 billion in managed assets, focuses on partnering with companies to drive strategic growth and value creation.
InvestingPro Insights
As NRG Energy, Inc. (NYSE: NRG) divests its Airtron Heating & Air Conditioning unit, it's worth noting the company's recent financial health and market performance. According to InvestingPro data, NRG boasts a robust market capitalization of $15.73 billion, underpinned by a forward-looking P/E ratio of 24.62. This indicates that investors have high expectations for the company's earnings potential in the near future. Additionally, the company's aggressive share buyback strategy, as highlighted in one of the InvestingPro Tips, demonstrates management's confidence in the company's value and its commitment to delivering high shareholder yield.
On the growth front, despite a revenue decline of 9.05% in the last twelve months as of Q1 2024, NRG has seen a substantial EBITDA growth of 363.2% during the same period, suggesting operational efficiency improvements. Moreover, the company has delivered an impressive one-year price total return of 101.41%, which may be of particular interest to investors looking for companies with strong historical performance. The company's profitability over the last twelve months and analysts' predictions of profitability for this year, as mentioned in the InvestingPro Tips, also provide reassurance about its financial stability.
For investors and analysts seeking more comprehensive insights, there are additional InvestingPro Tips available for NRG Energy, Inc. These tips delve deeper into various facets of the company's performance and outlook, offering a total of 10 tips on https://www.investing.com/pro/NRG that can help inform investment decisions. With NRG's next earnings date slated for August 8, 2024, stakeholders will be keen to see how the company's strategic moves, including the sale of Airtron, will influence its financial trajectory.
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