Redwood Services Acquires SE Capital's Five-Brand Sierra Platform

What happened

Redwood Services, a Memphis-based platform of residential HVAC, plumbing, and electrical contractors, announced on May 4, 2026, that it had acquired the Sierra Platform from SE Capital. The Sierra Platform is headquartered in Las Vegas and provides residential HVAC, plumbing, and electrical services across Nevada, Arizona, Idaho, and Colorado. The acquisition brings five partner companies, approximately 400 full-time teammates, and a portfolio serving more than 40,000 customers a year into Redwood. Redwood's announcement did not include a purchase price.

The seller

The platform Redwood bought from SE Capital, a private investment firm, comprises five companies: Sierra Air Conditioning and Plumbing in Las Vegas, Brothers Plumbing, Heating & Electric in Denver, Russett Southwest and Pioneer Plumbing in Tucson, and Ultimate Heating & Air in the Boise area. The companies were founded between 1947 and the early 2000s. Russett Southwest, the oldest, has served Southern Arizona with heating and cooling since 1947. Brothers was founded in Denver in 1980 as a family-owned and -operated company and does plumbing, heating and air conditioning, and electrical work across the Denver metro. Ultimate, founded in 2000 and based in Meridian, Idaho, does residential HVAC repair and replacement as well as new-home work around Boise.

In 2025 the platform held more than 19,000 active membership agreements. RJ Magee, who leads the Sierra Platform, 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," he said.

The Sierra name has a second business behind it that was not part of this deal. Sierra Air Conditioning, Inc., a Las Vegas installer of HVAC systems in new homes for national and local homebuilders, founded in 1987, was acquired by Airtron Heating & Air Conditioning in March 2025. SE Capital lists that business among its realized investments.

The buyer

Redwood was founded in 2020. Altas Partners announced a significant equity investment in Redwood in May 2025. According to Redwood, the Sierra deal takes it into three new major markets, Las Vegas, Denver, and Boise, and deepens its presence in Tucson. "The brands of the Sierra Platform are exactly the kind of high-quality, high-integrity businesses that fit within Redwood nation," said Richard Lewis, Redwood's founder and chief executive.

What happened in Tucson

Tucson is where Redwood made its first platform investment: Rite Way Heating, Cooling & Plumbing, founded in 1959, in a deal announced in January 2021. Russett Southwest now tells its customers it has joined Rite Way: "Same team, same number, more services." In the three markets that are new to Redwood, the Sierra companies are its first partners. For more on who buys businesses like these, see our page on HVAC and plumbing M&A.

What this means for plumbing and HVAC owners

Sierra's five companies went to a buyer that already owned a company in one of their four markets, and that market is the one where a 1947-founded brand now presents itself as part of another brand. An owner selling to a regional platform is also choosing who might buy that platform later. The question worth asking early is what happens to your name and your team if the next owner already has a company down the street.

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.

Own a plumbing and 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