The deal
Redwood Services, a Memphis-based platform of residential HVAC, plumbing and electrical contractors backed by Altas Partners, has acquired the Sierra platform from Chicago investment firm SE Capital. Redwood did not disclose the price.
The deal adds five companies: Sierra Air Conditioning and Plumbing in Las Vegas, Brothers Plumbing, Heating & Electric in Denver, Pioneer Plumbing and Russett Southwest in Tucson, and Ultimate Heating & Air in the Boise area. Together they have about 400 full-time employees and serve more than 40,000 customers a year. Sierra leader RJ Magee becomes Redwood's senior vice president of operations.
HomePros reported, citing unnamed sources, a price of about $220 million. Its sources disagreed on the multiple, with estimates of roughly 11 to 13 times EBITDA.
This is how private equity exits a home services investment: SE Capital built a group of companies and sold it to a bigger platform. If you sell to a platform, this is likely its future too. Owners who roll equity into a platform should know the investor's plan to exit, and the reported range on this deal shows how much a multiple can move depending on how earnings are counted.
What this means if you own a home service company
- Know the exit plan. Most platforms are built to be sold. Rollover equity rides on that sale.
- EBITDA definitions move price. Two sources, two multiples. How earnings are adjusted changes the math.
- Leaders get promoted. Sierra's leader got a senior role at the buyer. Strong managers carry value.
Source: Redwood Services announcement, May 4, 2026; HomePros News. Summary and analysis by V2 Strategy Advisors.