Citation Capital Strengthens Its Portfolio with Acquisition of Gallo Mechanical

Private equity firm Citation Capital recently took a significant step in its growth strategy by acquiring a majority stake in Gallo Mechanical, a well-established specialty mechanical contractor known for its expertise in HVAC and plumbing services. This acquisition marks a new chapter for both companies and is anticipated to enhance Gallo's operational capabilities and expand its market reach.

A Legacy of Excellence

Founded in 1945 in New Orleans, Gallo Mechanical has built a reputation for providing top-tier installation and service in the HVAC and plumbing sectors. The company has evolved over the years, transitioning into its fourth generation of family ownership while maintaining a strong commitment to customer satisfaction. Operating primarily in the southern United States, from Houston to the Carolinas, Gallo has a diverse clientele across several sectors, including healthcare, hospitality, education, industrial, and high-tech.

JP Hymel, CEO and President of Gallo Mechanical, emphasized the importance of Gallo's employees in the company's continued success. "Our growth has always been fueled by our commitment to our people and the culture of excellence we cultivate," he stated. With Citation Capital's backing, Gallo plans to leverage major market trends, such as data center expansions and the rising demand for energy-efficient solutions.

Aligning Values for Sustainable Growth

During the announcement of the acquisition, Tiffany K. Hagge, Founder and Managing Partner of Citation Capital, highlighted Gallo's status as a standout, founder-led company that perfectly aligns with Citation's investment philosophy. "Gallo represents the kind of resilient business that we are eager to invest in," Hagge noted. The acquisition aims to not only ensure Gallo's continued growth but also to enhance its commitment to providing exceptional service in the ever-changing mechanical construction landscape.

Citation Capital recognizes the potential for Gallo to capitalize on current market demands, including the reshoring of manufacturing and the increasing emphasis on energy efficiency. This strategic partnership aims to position Gallo as a leading provider in these burgeoning markets, ensuring it stays ahead of industry trends.

A Vision for the Future

David Gallo, Chairman of Gallo Mechanical, expressed pride in the company's legacy and the dedicated workforce that makes it all possible. “Our success over the decades is due to the incredible people who bring their best to work every day, and today, we are excited for what we can achieve together with Citation Capital," he said. The company aims to honor its foundational values of family, service, and performance, while pushing forward with innovative solutions and improvements.

The future appears bright for Gallo Mechanical as it looks to integrate Citation Capital's resources and expertise to further its commitments to its employees and customers. The partnership is designed not just to capitalize on financial opportunities, but also to enhance the company's contributions to the community and the mechanical services industry as a whole.

As Citation Capital continues to expand its portfolio with businesses like Gallo Mechanical, it reinforces its dedication to fostering the growth of founder- and family-led businesses while contributing to their legacies. This acquisition not only strengthens Citation's position in the mechanical and HVAC market but also sets Gallo on a path of sustainable growth and continued excellence in service delivery.

For further updates on this acquisition and its impact on the HVAC and plumbing industries, stay tuned to Citation Capital's announcements as they unfold.