United States. Monomoy Capital Partners, a mid-market private investment firm focused on creating operating value, sold Friedrich Air Conditioning to Rheem, a global manufacturer of HVAC equipment, water heaters, boilers and commercial refrigeration solutions. Terms of the transaction were not disclosed.
Founded in 1883, Friedrich manufactures air conditioning, dehumidification and air purification products for residential and commercial applications. The company is headquartered in San Antonio, Texas, with manufacturing operations in Monterrey, Mexico and distribution centers in Texas and New Jersey.
Monomoy acquired Friedrich in February 2017 with the aim of investing in new product development, updating and professionalizing the company's systems and talent, and diversifying the business into the fast-growing commercial, hosting and multifamily sectors. During the four and a half years of ownership of Monomoy, Friedrich implemented an extensive value creation program to improve cash flow, maximize profitability, execute a growth plan, and position the business for sale to a strategic buyer.
Monomoy CEO Jaime Forsyth commented: "Friedrich's stellar brand reputation, comprehensive product offering and innovative product developments resulted in tremendous growth under our ownership. We are proud of the work management has done to improve the company's core business systems while implementing strategic initiatives to grow in new, higher-margin end markets."
Friedrich's sale is the latest in a series of successful departures from Monomoy, which sold its majority stake in West Marine, Inc. to consumer products sponsor L Catterton in June.
"The world-class operational and investment talent at Monomoy provided strategic direction and operational resources to navigate the most challenging times while positioning our business for future growth and success," said Friedrich CEO Chuck Campbell. "Thanks to this support, we have steadily increased our revenue and results while reshaping our business outlook and plans to further expand our business."
Monomoy acquired Friedrich through its second private equity vehicle, Monomoy Capital Partners II, L.P., a $420 million fund raised in 2011.
