Affiliate of Paceline Equity Partners Provides $40 Million Investment in Kassel Mechanical

DALLAS--(BUSINESS WIRE)--An affiliate of Paceline Equity Partners, LLC (“Paceline”), a Dallas-based private equity manager, today announced that it has made a $40 million preferred equity investment in Kassel Mechanical Holdings, LLC (“Kassel”, or the “Company”). Kassel is a privately held provider of facility services focused on the installation and maintenance of mechanical, electrical, plumbing, fire suppression systems (collectively, “MEPF”), and other critical mechanical building systems to a diverse set of end-markets. Paceline’s equity investment is being made in conjunction with a broader recapitalization to support Kassel’s add-on acquisition of Arrow Electric, Inc. (“Arrow”), a privately held electrical contractor providing construction, design and maintenance services.

Sam Loughlin, Chief Executive Officer of Paceline, said “We are thrilled to work collaboratively with Kassel founder, Tom Werner, and the rest of the experienced management team to support the growth of Kassel, a fast-growing MEPF company with an established track record and exciting growth opportunities. Paceline has significant experience investing in building products and construction sectors, and we look forward to bringing our financial and operational expertise to help Kassel scale and accelerate its growth.”

Leigh Sansone, Chief Investment Officer of Paceline, added “This transaction reflects Paceline’s ability to source differentiated opportunities and provide flexible capital solutions. We are pleased to deliver a unique capital solution for Kassel to execute management’s growth strategy, which includes exciting organic and inorganic initiatives.”

About Paceline Equity Partners

Paceline is a Dallas-based private equity manager focused on value-oriented, opportunistic, and special situations investments across corporate credit, private equity, and real assets. Paceline’s senior leadership team has worked together for nearly 20 years and manages over $1.5 billion in equity commitments on behalf of a global investor base. To learn more, please visit www.pacelineequity.com.

About Kassel Mechanical

Based in Columbus, Ohio, Kassel began operations in 2015 and is engaged in the design, installation and maintenance of mechanical systems in the commercial and industrial sector, primarily focused on mechanical, electrical, plumbing and fire suppression systems. The Company also offers millwright and rigging services to a diverse client base, including property developers, general contractors and facility managers. Since 2015, the Company has experienced significant growth and the expansion of its platform through several strategic acquisitions that enhanced its reach and capabilities. To learn more, please visit www.kasselmechanical.com.

About Arrow Electric

Founded by James K. Foltz in 2000 and based in Greenville, Pennsylvania, Arrow Electric is a privately held electrical contractor company specializing in electrical, home automation and life safety solutions. Arrow’s experienced technical staff provides customers with a variety of services, including value-engineering, design and build services, estimating and budgeting for commercial, industrial, institutional and residential projects. To learn more, please visit www.1aei.com.