Monomoy Capital Partners Completes Strategic Sale of Friedrich Air Conditioning to Rheem

NEW YORK–Monomoy Capital Partners, a middle-market private investment firm focused on operational value creation, has 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 room air conditioning, dehumidification and air purification products for residential and commercial applications. Friedrich is among industry leaders in high-end air conditioning solutions for single room use in lodging, commercial and multi-family sectors. The company is based in San Antonio, Texas with manufacturing operations in Monterrey, Mexico and distribution centers in Texas and New Jersey.

Monomoy acquired Friedrich in February of 2017 with the goal of investing in new product development, upgrading and professionalizing the company’s systems and talent, and diversifying the business into the fast-growing commercial, lodging and multi-family sectors. Over the four and a half years of Monomoy ownership, Friedrich implemented a wide-ranging value creation program to improve cash flow, maximize profitability, execute a growth plan and position the business for sale to a strategic buyer.

Monomoy Managing Director Jaime Forsyth remarked, 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 that management accomplished to enhance the company’s core business systems while implementing strategic initiatives to grow into new, higher-margin end markets.

The sale of Friedrich is the latest in a string of successful exits for Monomoy, which sold its majority stake in West Marine, Inc. to consumer product sponsor L Catterton in June.

The world-class investing and operating talent at Monomoy provided strategic direction and operating resources to navigate the most challenging of times while positioning our business for future growth and success, explained Friedrich’s Chief Executive Officer Chuck Campbell. Because of this support, we have consistently grown our top and bottom lines while also reshaping our commercial outlook and plans to continue scaling our business.

Monomoy acquired Friedrich through its second private equity vehicle, Monomoy Capital Partners II, L.P., a $420 million fund raised in 2011.

Jim Reilly and Dave Hallett of Lazard Middle Market LLC served as financial advisor to Friedrich with respect to the transaction. TJ Monico of KeyBanc Capital Markets, Inc. advised the Board of Managers of Friedrich. Darcy Down and J. Brooke Mestre of Baker & McKenzie LLP served as legal counsel to the company. Christian Mangelsen of Alvarez & Marsal Transaction Advisory Group, LLC served as accounting advisor of the company.

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Monomoy Capital Partners is a private investment firm with $2.7 billion in committed capital across a family of five investment funds. We invest in the debt and equity of middle market businesses that can benefit from operational and financial improvement with a focus on manufacturing, distribution and consumer product businesses in North America and Europe.