#United States #HVAC Services #Bloomington #Harrell-Fish Inc. #New State Capital Partners

New State Capital Partners Completes Majority Investment in Harrell-Fish Inc.

New State Capital Partners, a leading investment firm based in New Rochelle, New York, has officially announced the completion of its majority investment in Harrell-Fish Inc. (HFI), a top-tier provider of mechanical contracting services in Bloomington, Indiana. This strategic investment represents an exciting step forward for both companies, as it brings together New State's entrepreneurial vision with HFI's established reputation in the mechanical services industry.

Background on Harrell-Fish Inc.

Founded in 1985, Harrell-Fish Inc. has for decades specialized in mechanical installation and maintenance services tailored to a variety of essential markets, including healthcare, education, and government facilities. With a strong emphasis on delivering innovative solutions for heating, ventilation, and air conditioning (HVAC) systems, as well as plumbing services, HFI has garnered a solid reputation among its commercial and institutional clients. Most of the company's revenue is generated from retrofit, renovation, and maintenance projects, demonstrating its pivotal role in ensuring operational efficiency and sustainability in matters related to building infrastructure.

Strategic Partnership

The announcement of the investment indicates that while New State Capital Partners has acquired a majority stake, the existing owners of HFI retain significant ownership and will continue being an integral part of the management team. This partnership is expected to harness the strengths of both entities, fostering a collaborative culture that prioritizes enhancing service delivery and pursuing new growth opportunities.

Shaun Vasavada, Senior Principal at New State Capital Partners, spoke about the firm’s strategy, stating, "HFI is an established regional leader serving critical end markets, with a strong foundation for growth. We have executed a similar playbook in prior facility services investments and look forward to collaborating with the management team to drive continued success."

Market Opportunities and Future Prospects

HFI is poised for significant growth, particularly as the mechanical contracting sector is witnessing increasing demand for modernized systems and services. With its established relationships and in-house labor capabilities, the company is strategically positioned to explore geographic expansion, particularly throughout the Midwest. The partnership with New State is set to enhance HFI's operational capabilities by integrating more advanced systems and technologies, while also keeping their commitment to the quality that clients have come to expect.

Steve Dawson, the CEO of HFI, expressed his optimism regarding the collaboration, emphasizing that it will allow the company to accelerate its growth while maintaining its cherished culture. He noted that, "The firm's collaborative approach and deep operating resources will help us enhance our systems, expand our service capabilities, and pursue new avenues for expansion."

Industry Insights

The investment in Harrell-Fish Inc. is seen as part of a larger trend in the mechanical contracting industry, where firms are increasingly seeking to enhance their market position through strategic mergers and acquisitions. New State Capital Partners, with this investment, also intends to pursue additional acquisition opportunities within the sector to facilitate accelerated growth and development.

This transaction marks the first platform investment in New State’s Fund IV, accompanied by the partnership with Amethyst Capital Group, an independent investment firm with a strong performance history in business and infrastructure services. Together, they aim to capitalize on the robust tailwinds present in the mechanical contracting space, reinforcing their collective commitment to operational excellence and sustainability in service delivery.

As New State continues to expand its portfolio, the company remains dedicated to fostering meaningful relationships with both management teams and customers alike, ensuring that growth does not come at the expense of service quality. The future looks promising for Harrell-Fish Inc. and its stakeholders as they embark on this new journey with New State Capital Partners.

Conclusion

The completion of this strategic investment is not just a pivotal moment for New State Capital Partners and Harrell-Fish Inc., but it also signifies an important shift in the mechanical services landscape, where strategic partnerships are crucial for driving innovation and growth. With a focus on service excellence and sustainability, both firms are set to redefine standards in the industry, promising exciting times ahead.