Gemspring Capital Announces Sale of Therma Holdings

WESTPORT, Conn.–(BUSINESS WIRE)–Gemspring Capital, a middle-market private equity firm, announced today that private equity funds managed by Blackstone Energy Partners (collectively, “Blackstone”) have entered into a definitive agreement to acquire one of Gemspring’s portfolio companies, Therma Holdings, LLC (“Therma”).

Therma is a leading specialty mechanical, electrical and controls services company focused on designing, building, and servicing complex systems in mission-critical facilities. Therma’s services are core to improving and maintaining energy efficiency for leading companies across the technology, life sciences, healthcare and data center sectors. Founded in 1967, Therma employs over 2,200 professionals and engineers providing a full suite of innovative mechanical and electrical services for owners, general contractors and construction managers.

Gemspring acquired Therma in June 2017. During Gemspring’s ownership, Therma expanded its geographic footprint and service capabilities by completing four strategic acquisitions. In addition, Therma made significant investments in management, operational infrastructure, and service offerings to extend its market leadership and drive strong growth.

“Gemspring has been a tremendous partner to Therma and has been instrumental in helping us develop and execute our growth strategy,” said Therma CEO Jeff Sprau. “This is a very exciting new chapter for our company and Blackstone has provided a strong endorsement for Therma and our best-in-class service offering.”

“Therma is a fantastic company led by a great team. We are very grateful for the opportunity to be a steward of Therma over the course of our ownership and contribute to its growth,” said Bret Wiener, Managing Partner of Gemspring. “Therma has been an extremely successful investment for management and our investors. We look forward to the Company’s continued success under Blackstone’s ownership.”

“Therma management consistently executed the strategic and tactical goals we collectively developed, nearly tripling annual revenue during our ownership as a result,” said Thomas Zanios, Managing Director at Gemspring. “We are thrilled with the outcome of our investment and confident that Therma is well-positioned to continue on its strong growth trajectory.”

Completion of the transaction, which is expected to occur in the fourth quarter of 2020, is subject to regulatory approvals and customary closing conditions.

Jefferies Financial Group and Lincoln International are serving as financial advisors and McDermott Will & Emery LLP is serving as legal counsel to Therma.

About Therma Holdings LLC

Therma Holdings LLC is a leading mechanical, electrical and plumbing services company focused on designing, building, and servicing custom and complex mechanical systems. Therma provides engineering, estimation, design, building information modeling, energy modeling, design-build, specialty HVAC and pipe fabrication, modular skid and process controls, pre-fabrication and installation work for owners, general contractors, and construction managers in the technology, biopharmaceutical, data center, semiconductor and other industries with complex mechanical requirements. For more information, please visit www.thermaholdings.com.

About Gemspring Capital

Gemspring Capital, a Westport, Connecticut-based private equity firm with $1.1 billion of capital under management, provides flexible capital solutions to lower middle market companies headquartered in the United States and Canada. Gemspring partners with talented management teams and takes a partnership approach to helping drive revenue growth and value creation. Target companies have up to $500 million in revenue and are in the business services, distribution and logistics, financial and insurance services, healthcare services, industrial services, software and tech-enabled services or specialty manufacturing sectors. For more information, visit www.gemspring.com.

Contacts

Thomas Zanios

Managing Director

thomas@gemspring.com

Ravdeep Chanana

Principal

ravdeep@gemspring.com