Redwood Services Buys Ultimate Heating & Air in Five-Company Sierra Deal

What happened

Redwood Services acquired Ultimate Heating & Air, a residential HVAC and plumbing company in Meridian, Idaho, as one of five companies in its purchase of the Sierra Platform from investment firm SE Capital, announced May 4, 2026. The other four are Sierra Air Conditioning and Plumbing in Las Vegas, Brothers Plumbing, Heating & Electric in Denver, and Pioneer Plumbing and Russett Southwest in Tucson, and together the five bring about 400 full-time teammates to Redwood. The companies did not disclose financial terms. Homepros, citing people familiar with the matter, reported that the deal valued the five-company group at about $220 million.

The seller

Dale and Lisa Whitney started Ultimate Heating & Air in a two-car garage in March 2000. The company serves Boise, Meridian, Nampa, Kuna, and the rest of the Treasure Valley with heating and cooling, plumbing, sewer and drain, and indoor air quality work, and it has also done HVAC for new home construction around Boise. It employs more than 40 full-time staff and trains technicians through an in-house apprenticeship program.

SE Capital, a Chicago-based investment firm, sold Ultimate as part of the Sierra Platform and now lists the company as a realized investment. At Redwood, RJ Magee is Ultimate's partner and Chris Day is its general manager. Magee led the Sierra Platform and joins Redwood as senior vice president of operations. "Joining Redwood creates an opportunity to build on that foundation with additional resources and support, while preserving the local leadership and culture that made these businesses successful," he said.

The buyer

Founded in 2020 and headquartered in Memphis, Redwood Services backs residential HVAC, plumbing, and electrical contractors around the country. In May 2025, Altas Partners, a North American investment firm, announced a significant equity investment in Redwood, joining founding backer Union Main Group.

The Sierra deal took Redwood from 19 partner companies to 24 and into three new markets: Las Vegas, Denver, and Boise. Ultimate is Redwood's only Idaho partner. "These are five exceptional brands with experienced teams, strong customer relationships, and a track record of performance," said Richard Lewis, Redwood's CEO and founder.

When one platform buys another

Homepros counts the Sierra deal as only the second time one of today's residential HVAC, plumbing, and electrical platforms has bought another, after Apex Service Partners acquired Frontier Service Partners in January 2024.

The platform Redwood bought was itself the product of an earlier split. SE Capital bought Sierra in January 2020, when it had both a residential new-construction division and a service and replacement division. In March 2025 it sold the new-construction side to Airtron and kept the service business that Redwood has now bought. Owners weighing that kind of path can read our guide on selling an HVAC business to private equity.

What this means for HVAC owners

The company the Whitneys started changed hands this time as one piece of a five-company, four-state package, sold by an investor that had already sold Sierra's new-construction division to a different buyer. The valuation Homepros reported covers the whole group rather than Ultimate on its own. For owners fielding an offer from an investor-backed group, Ultimate's record shows where joining a platform can lead: a later sale in which the business reaches its next owner bundled with companies in other states.

OffDeal is an advisory firm that helps lower-middle-market business owners sell with confidence. Reach out to learn more about our expertise with HVAC businesses in Idaho.

Own a HVAC business with $5M–$100M in revenue? We’re glad to give you an honest read on what it’s worth and who would buy it — no pitch, no pressure. Get a free valuation.

Source: Redwood Services - https://redwoodservices.com/news/redwood-services-expands-national-footprint-with-acquisition-of-sierra-platform-from-se-capital/