AE Industrial Expands HVAC Platform With DFW Mechanical Acquisition

United Building Solutions, the commercial HVAC services platform backed by AE Industrial Partners, has acquired DFW Mechanical Group, a Texas-based mechanical contractor serving clients across four Southern states. The transaction, announced January 20, marks the platform's second add-on acquisition in less than a year and signals accelerating consolidation in the fragmented commercial building services sector.

Financial terms were not disclosed. The deal extends United Building Solutions' geographic reach into Texas, Oklahoma, Georgia, and Florida, complementing its existing presence in the Northeast and adding critical density in high-growth Southern markets where commercial construction activity and building modernization spending continue to outpace national averages.

The acquisition follows a familiar private equity playbook: establish a well-capitalized platform, then rapidly bolt on regional operators to achieve national scale. What distinguishes this deal is the speed of execution and the strategic focus on markets where aging commercial infrastructure and heightened energy efficiency mandates are driving sustained demand for mechanical systems upgrades.

United Building Solutions acquired DFW Mechanical Group to expand its commercial HVAC services footprint across the South-Central United States. The Wylie, Texas-based contractor will operate as a division of UBS under the continued leadership of President Brett Thomas, who brings more than three decades of industry experience.

The transaction represents UBS's second add-on following AE Industrial Partners' platform investment in February 2025, when the firm simultaneously acquired Total Comfort Solutions, a North Florida HVAC provider, to establish the national platform. With DFW now integrated, UBS operates across the Northeast, Southeast, and South-Central regions, positioning the company as one of the few commercial HVAC providers with true coast-to-coast capabilities.

The acquisition advances AE Industrial's thesis that commercial building services represent critical infrastructure deserving institutional capital and professional management.

"We're pleased to welcome DFW Mechanical into our expanding network of premier HVAC service providers," said David Leathers, CEO of United Building Solutions. "This acquisition further diversifies our array of services and enables us to reach the key markets in the Southern U.S. that are experiencing heightened demand for specialized building management solutions."

The deal delivers several strategic advantages. First, it provides immediate access to DFW's established customer relationships across four states, reducing the time and capital required to build market presence organically. Second, it adds specialized capabilities in industrial HVAC systems, plumbing, heating, and piping—services that complement UBS's existing offerings in building analytics and controls. Third, it positions the platform to cross-sell higher-margin maintenance contracts and energy management solutions to DFW's commercial and industrial client base.

For DFW Mechanical, the transaction offers access to UBS's capital resources, procurement scale, and technology infrastructure. "By joining forces, we can expand our market reach and leverage our combined resources to serve a broader range of customers while upholding our commitment to delivering high-quality, professional services," said Brett Thomas, who will continue leading the business as president.

The retention of existing management is critical. HVAC services remain relationship-intensive businesses where customer loyalty often follows individual technicians and project managers rather than corporate brands. By maintaining operational continuity, UBS mitigates integration risk while preserving the local market knowledge that made DFW an attractive target.

Headquartered in Wylie, Texas—a suburb northeast of Dallas—DFW Mechanical Group has built a reputation as a full-service commercial and industrial mechanical contractor. The company delivers comprehensive HVAC solutions spanning installation, maintenance, retrofit, and emergency repair services.

DFW's service portfolio extends beyond traditional HVAC work to include plumbing, heating systems, and industrial piping—capabilities that position the company to serve complex facilities including manufacturing plants, distribution centers, healthcare facilities, and large commercial office buildings. The company emphasizes 24-hour emergency service and warranty-backed programs, differentiators that help retain customers in a competitive market.

While specific financial metrics were not disclosed, DFW's multi-state footprint and diversified service offerings suggest annual revenues likely in the range of $25 million to $75 million—a typical profile for regional mechanical contractors targeted in HVAC consolidation strategies.

The company's geographic footprint is particularly valuable. Texas represents one of the nation's fastest-growing commercial real estate markets, with the Dallas-Fort Worth metroplex adding millions of square feet of industrial and office space annually. Oklahoma, Georgia, and Florida similarly benefit from population migration, business relocations, and infrastructure investment—trends that drive sustained demand for building services.

The commercial HVAC services sector is experiencing a wave of private equity-driven consolidation as firms recognize the sector's attractive fundamentals: recurring revenue streams, fragmented market structure, and favorable regulatory tailwinds.

Private equity firms are tapping into the fragmented HVAC market with rollup strategies, consolidating smaller businesses into larger, more profitable entities, according to industry analysis. The sector remains highly fragmented, with thousands of independent operators serving local and regional markets. This fragmentation creates opportunities for well-capitalized platforms to achieve scale through strategic acquisitions.

Several factors are accelerating M&A activity. Building energy efficiency mandates, particularly in commercial real estate, are forcing property owners to upgrade aging HVAC systems. The transition to smart building technologies is creating demand for integrated solutions that combine mechanical systems with digital controls and analytics. Labor shortages in skilled trades are pressuring smaller operators who lack the resources to recruit and retain technicians, making acquisition an attractive exit strategy for aging owners.

Transaction multiples in the building services sector have remained resilient despite broader economic uncertainty. Quality HVAC businesses with recurring maintenance contracts and diversified customer bases typically trade at 6x to 10x EBITDA, with premium valuations for companies demonstrating organic growth and strong management teams.

Recent comparable transactions underscore the sector's appeal. While specific deal values are often undisclosed, the pace of platform formation and add-on activity has accelerated notably over the past 18 months, with multiple private equity firms establishing competing HVAC platforms through similar buy-and-build strategies.

AE Industrial Partners brings an unconventional lens to the commercial building services sector. The Boca Raton-based private equity firm manages $7.5 billion of assets under management as of September 30, 2025, with an investment mandate focused on technologies and services considered critical to national and economic security.

The firm's portfolio spans aerospace, defense, government services, and specialized industrial sectors. Since its founding in 2015, AE Industrial has completed more than 140 investments in market-leading companies across its focus areas. The firm invests across private equity, venture capital, and aerospace leasing strategies, bringing deep operational expertise and an extensive network of industry relationships.

The United Building Solutions investment represents AE Industrial's thesis that commercial building infrastructure—particularly HVAC and energy management systems—constitutes critical infrastructure deserving institutional investment. Modern commercial buildings increasingly function as complex systems where mechanical, electrical, and digital components must operate in concert to ensure occupant safety, operational continuity, and energy efficiency.

"Building owners and operators are increasingly recognizing the critical role HVAC systems play in preserving the integrity and performance of their facilities while improving efficiency," said Bryan McElwee, Partner at AE Industrial. "The acquisition of DFW positions UBS as a comprehensive, nationally scaled commercial platform that is poised to capitalize on these industry tailwinds."

AE Industrial's approach emphasizes building platforms with sustainable competitive advantages rather than pursuing financial engineering. The firm's operating partners work directly with portfolio company management teams to drive organic growth, operational improvements, and strategic acquisitions. This hands-on model aligns well with the HVAC services sector, where operational excellence and customer service quality directly impact financial performance.

The DFW Mechanical acquisition positions United Building Solutions for continued expansion through both organic growth and additional bolt-on transactions. With a national footprint now spanning the Northeast, Southeast, and South-Central United States, the platform has achieved the geographic scale necessary to serve multi-location commercial customers—a key competitive advantage when pursuing national accounts.

Several factors suggest UBS will remain acquisitive. The HVAC services market remains highly fragmented, providing a deep pipeline of potential targets. AE Industrial's $7.5 billion in assets under management ensures ample capital for additional transactions. And the strategic logic of consolidation—achieving procurement savings, sharing best practices, and cross-selling services—strengthens with each additional acquisition.

The platform's expansion into Texas and surrounding states is particularly well-timed. The region's population growth, business-friendly regulatory environment, and infrastructure investment are driving commercial construction activity that should sustain demand for HVAC services for years to come. Additionally, the region's extreme summer temperatures make HVAC systems genuinely mission-critical, supporting higher service intensity and customer retention rates.

Risks remain. Integration challenges could emerge as UBS absorbs multiple acquisitions in rapid succession. Labor shortages affecting the broader construction trades sector could constrain growth if the company cannot recruit and retain skilled technicians. And economic uncertainty could pressure commercial real estate fundamentals, potentially reducing customers' willingness to invest in building system upgrades.

Competition is also intensifying. Multiple private equity firms are pursuing similar HVAC consolidation strategies, potentially driving up acquisition multiples and making it more expensive to source attractive targets. The race to achieve national scale may accelerate, pressuring UBS to move quickly on additional transactions.

The acquisition of DFW Mechanical Group represents another step in AE Industrial Partners' methodical build-out of a national commercial HVAC services platform. By adding a multi-state contractor with diversified capabilities and experienced management, United Building Solutions strengthens its competitive position in high-growth Southern markets while advancing toward true coast-to-coast coverage.

The transaction underscores a broader trend: private equity's recognition that essential building services represent attractive investment opportunities characterized by recurring revenues, defensive demand characteristics, and significant consolidation potential. As building systems grow more complex and regulatory requirements more stringent, the competitive advantages of scale, capital, and professional management become increasingly difficult for independent operators to match.

For the commercial HVAC services sector, the implications are clear. Consolidation will continue, valuations will remain elevated for quality assets, and the industry structure will increasingly resemble other fragmented service sectors that have undergone private equity-driven transformation. The question is not whether consolidation will proceed, but rather which platforms will emerge as national leaders—and how quickly they can execute their growth strategies before the most attractive targets are acquired.