Case Study: Andersen Plumbing
Partnering With a Top-Tier Provider
Andersen Commercial Plumbing (“ACP” or the “Company”) is a leading provider of plumbing and HVAC services in Southern California. The Company provides maintenance and repair, tenant improvement, and design build services to residential and commercial clients. ACP was founded in 1995 and headquartered in La Verne, California.
Transaction Dynamics
- Seaside partnered with the founder and management team in July of 2018 to invest in growing the business both organically and through acquisitions
- Seaside’s investment allowed the founder to diversify his holdings while maintaining a significant stake in the business
- Seaside worked closely with the founder and management team to maintain and elevate the team, culture, and strategy while accelerating growth
Executing the Strategy
With the support of Seaside, management executed a growth-oriented value creation playbook:
- Rapidly scaled Andersen through both organic and inorganic initiatives to be a leading regional provider of turnkey plumbing and HVAC services
- Expanded geographic coverage from one location to ten across Southern California
- Aggressively grew the Service and Maintenance, a more mission critical and re-occurring revenue stream, by expanding the team, investing in infrastructure, and acquiring add-on targets
- Improved company’s infrastructure to accelerate growth – developed organizational talent, upgraded ERP systems, enhanced financial reporting and KPIs, engaged national accounting firm for audit and tax
- Expanded service offerings within plumbing and added HVAC capabilities
- Organically grew top-line revenue and improved profitability by enhancing the pricing strategy, shifting mix towards repair and service, and scaling operations
- Pursued, executed, and integrated eight add-on acquisitions in order to grow geographically, expand service offerings, and increase scale
Delivering Results
- Expanded from one location to ten across Southern California
- Scaled repair and service division by over 6x
- Grew plumbing services offerings to capture more wallet share
- Expanded into HVAC services
- Materially grew revenue and EBITDA
Exit
Given the strong growth and level of value creation under Seaside’s ownership, the Company sold to Sun Capital Partners in July 2022.