Gryphon Investors Selling Heritage Distributors for Nearly $1.3B - Modern Distribution Management

Log In

Gryphon Investors Selling Heritage Distributors for Nearly $1.3B

Atlanta-based Heritage Distribution Holdings is a group of HVACR distributors serving the U.S. southeast and midwest via 64 branches across 10 states.
Heritage
Author
Date

Gryphon Investors, a middle-market private equity firm, announced Dec. 15 that it has reached a deal on the sale of its portfolio company Heritage Distribution Holdings — a global distributor of commercial and industrial refrigeration and air conditioning products.

Want to be a master of M&A? MDM’s 2023 M&A Virtual Summit, held Feb. 21-22, will deliver everything you need. Get details and register here.

In a news release, San Francisco-based Gryphon shared that the buyer is Sweden-based Beijer Ref AB, a global wholesaler of refrigeration and cooling products with some 70 subsidiaries. The deal is expected to close in early 1Q 2023, subject to closing conditions.

Trade publication Cooling Post reported that the deal is worth $1.275 billion.

Gryphon first invested in Atlanta-based Heritage in July of 2021 and has since completed five add-on acquisitions for the company under its ownership. The most recent was this past October with the addition of Knoxville, Tennessee-based Coastal Supply Company.

Heritage Distribution Holdings is a multi-regional HVACR parts and equipment distributor serving the U.S. southeast and midwest. It was formed from the merger of Wittichen Supply (founded 1914), Benoist Brothers Supply (founded 1928), Ed’s Supply (founded 1957) and Coastal Supply Company (founded 1978). Today, the company’s footprint includes 64 branches across 10 states.

“Heritage Distribution Holdings has a bright future ahead and we are confident that Beijer Ref is the ideal home for the Company,” Grphyon Managing Director Tim Bradley said in a news release. “It was important to Gryphon to steward the legacy behind each of HDH’s underlying brands, which we are confident will continue given Beijer Ref’s emphasis on entrepreneurial culture and local decision-making.”

Baird acted as lead financial advisor to Gryphon, and Kirkland & Ellis LLP served as Gryphon’s legal counsel. 

For Beijer Ref, the deal marks the distributor’s first entry into the North American market. Cooling Post quoted company CEO Christopher Norbye describing the market’s shift toward electrification and energy efficiency, accelerated by regulatory changes and the growing recognition of indoor air quality and environmental impacts.

“The North American market is highly-fragmented and Heritage Distribution offers an excellent platform from which we can continue to drive consolidation,” Norbye said. “With our collective industry awareness and proficiency, there are many significant and valuable synergies to be unlocked.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.