Redwood Services Buys Sierra Air Conditioning & Plumbing From SE Capital

What happened

Redwood Services, a Memphis-based residential HVAC, plumbing, and electrical platform, announced on May 4, 2026, that it had acquired the Sierra Platform from Chicago-based investment firm SE Capital. The group is anchored by Sierra Air Conditioning & Plumbing in Las Vegas and includes four other contractors: Brothers Plumbing, Heating & Electric in Denver, Pioneer Plumbing and Russett Southwest in Tucson, and Ultimate Heating & Air in Boise, Idaho. Together the five bring about 400 full-time employees and serve more than 40,000 customers a year, and the platform held more than 19,000 active membership agreements in 2025.

Redwood's announcement gave no price, and a Redwood representative declined to comment to Homepros. Homepros, citing people familiar with the matter, reported that the transaction values the group at about $220 million.

The seller

Sierra Air Conditioning & Plumbing serves homeowners across the Las Vegas Valley, from Summerlin and Henderson to North Las Vegas and Boulder City. Its work spans air conditioning and heating, plumbing and water heaters, drain and sewer lines, and indoor air quality, and its S.A.M. maintenance plan gives members four visits a year and a discount on repairs.

This was not a founder's sale. SE Capital bought Sierra in January 2020, when it ran both a residential new-construction division and a service-and-replacement division. In March 2025, SE sold the new-construction side, which installs HVAC systems in homes for national and local builders, to Airtron Heating & Air Conditioning, a Gamut Capital Management portfolio company. SE kept the service and replacement business, which anchors the group now sold to Redwood.

RJ Magee, who led the Sierra Platform, joins Redwood as senior vice president of operations and will oversee the integration of the five companies. "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," Magee said.

The buyer

Redwood was founded in 2020 and is led by founder and CEO Richard Lewis. Toronto-based Altas Partners made a significant equity investment in the company in May 2025, joining founding backer Union Main Group; Homepros reported that investment as a majority stake. Redwood describes its model as pairing national resources with preserving the local identity of each business it partners with.

The Sierra deal takes Redwood into three new markets, Las Vegas, Denver, and Boise, and adds to Tucson, where it already operated. Homepros reported that it lifts Redwood from 19 to 24 contractor partners, excluding tuck-in acquisitions. "These are five exceptional brands with experienced teams, strong customer relationships, and a track record of performance," Lewis said.

When platforms buy platforms

Homepros counts this as only the second deal in which one of today's residential HVAC, plumbing, and electrical platforms has bought another, after Apex Service Partners acquired Frontier Service Partners in January 2024. Redwood took a sponsor-owned regional group in one transaction rather than adding its five contractors one at a time. Owners weighing who is buying in the trade can see how we approach home and facility services businesses.

What this means for plumbing and HVAC owners

Sierra's two halves went to two different private equity-backed buyers 14 months apart: the new-construction arm to a builder-focused installer, and the service and replacement business, with its maintenance-plan members, to a residential service platform. The two kinds of work drew different buyers, so an owner running both should decide whether to sell them together or apart before a process starts. The sale also shows what selling to private equity can set up: SE Capital held Sierra for more than six years, then sold it with four sister companies to a larger platform in a single transaction, so an owner joining a regional group should ask its sponsor how it has exited past investments.

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

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