Broadtree Partners Bets on Legacy Plumbing Business as Platform for MEP Services Rollup

The deal represents a classic private equity playbook: acquire a family-owned business with deep local roots, install an operator with industry connections, and use it as a foundation for aggressive consolidation in a fragmented sector. But the transaction announced today by Broadtree Partners also reflects broader trends reshaping the mechanical, electrical, and plumbing services industry—a market poised for explosive growth as infrastructure spending surges and aging buildings demand modernization.

Broadtree Partners, a Charlotte-based lower middle market private equity firm, has acquired ACME Plumbing Company, a fourth-generation family owned and operated commercial and residential plumbing services company based in Durham, NC. The transaction, which closed January 7, 2026, marks Broadtree's entry into the MEP services sector and establishes ACME as the platform investment for Broadtree's mechanical, electrical, and plumbing services strategy.

Financial terms were not disclosed, but the deal carries significant strategic weight for both parties. For the Tilley family, which has owned and operated ACME since its founding in 1947, the transaction represents a carefully orchestrated succession plan that preserves the company's reputation while providing capital for growth. For Broadtree, it's a calculated bet on industry consolidation in one of America's fastest-growing metropolitan areas.

ACME Plumbing's story is quintessentially American—a family enterprise passed down through four generations, built on craftsmanship and customer relationships. Larry Tilley, the previous Owner and CEO, inherited the business from his father, who inherited it from his father before him. Under Larry's leadership for the past 33 years, ACME established itself as a trusted name in the Raleigh-Durham-Chapel Hill market, serving both commercial construction projects and residential property owners.

"In 1947 my grandfather started what would become Acme Plumbing & Heating Co. My father grew the business and led it for 40 years. Thirty-three years ago, I took over the helm," Tilley said in a statement. "Today, Acme P&H is poised to benefit from the next level of management to continue its upward growth spiral. I feel strongly that we have found the right person and resources to guide the company through the next 30-40 years."

That "right person" is Tripp Andracchio, a Broadtree Partners Operating Partner who will assume the CEO role. Tilley will remain with the business in an advisory capacity, ensuring continuity during the transition—a structure that has become increasingly common in private equity transactions involving founder-led businesses.

Andracchio brings a different pedigree than the typical plumbing company executive. A North Carolina native, he previously led multi-billion-dollar real estate development projects with Kane Realty Group, one of the Triangle's most prominent developers. That experience gives him something invaluable in the construction services business: relationships.

"Tripp is a North Carolina native and brings with him extensive real estate project management experience and a vast network of major developers, general contractors, subcontractors, and property managers across the Triangle market," Broadtree noted in its announcement. His deep connections are expected to provide pipeline visibility from prior experience, positioning him to identify future acquisition opportunities, sustain a strong construction backlog, and drive multi-vertical expansion.

Geography matters in this deal. The Raleigh-Durham-Chapel Hill market, commonly known as the Triangle, has emerged as one of the nation's economic powerhouses. The region's combination of major research universities, a thriving technology sector, and business-friendly policies has fueled sustained population and economic growth.

For a construction services business, this translates directly to opportunity. New residential developments, commercial office buildings, data centers, and institutional facilities all require MEP services—both during construction and for ongoing maintenance. ACME's exceptional reputation built by decades of high-quality customer service and workmanship positions it to capture a growing share of this expanding market.

The broader MEP services sector is experiencing robust growth nationwide. According to market research, the United States MEP services market size stands at USD 32.55 billion in 2025 and is on track to hit USD 45.16 billion by 2030 at a 6.70% CAGR, driven by factors including Inflation Reduction Act (IRA) tax credits, record federal infrastructure spending, and rising capital deployment across mission-critical facilities.

The global MEP services market presents even more dramatic growth potential, with projections suggesting the sector could reach hundreds of billions in value over the next decade as building modernization and energy efficiency mandates accelerate worldwide.

Broadtree's strategy with ACME follows a well-established private equity pattern in fragmented service industries: acquire a respected local player with strong customer relationships, professionalize operations, add growth capital, and use it as a platform for acquiring smaller competitors.

The firm has demonstrated execution capability in this approach. Since its founding in 2016, Broadtree has completed 16 platform investments and 36 total acquisitions, focusing on business services, government services, healthcare services, and technology. The firm's strategy emphasizes identifying and partnering with talented executives to drive value while preserving legacy and core values through flexible acquisition arrangements.

This philosophy appears particularly well-suited to the MEP services sector, where many businesses remain family-owned and operators often prioritize reputation and employee relationships alongside financial returns. Broadtree's approach—which ranges from operational partnerships to coordinated leadership transitions—offers family business owners an alternative to traditional buyouts that might disrupt company culture.

Brad Batten, Managing Partner at Broadtree Partners, emphasized this continuity in his statement: "The Tilley family has built an exceptional business grounded in delivering the highest quality service for its customers. We will continue to focus on delighting our customers and continuing Larry's family legacy. The addition of Tripp's leadership and further growth resources will position ACME for strong growth into its next chapter."

Several structural factors make the MEP services sector attractive for private equity consolidation strategies. The industry remains highly fragmented, with thousands of small, regional operators. Many are owned by aging entrepreneurs facing succession challenges similar to the Tilley family's situation. These businesses often have strong local reputations and steady cash flows but lack the capital and management infrastructure to scale.

Private equity firms can provide both. By combining multiple regional players under common ownership, they can achieve operational efficiencies, purchasing power, and geographic diversification while maintaining the local brands and relationships that drive customer loyalty.

The sector also benefits from favorable demand dynamics. Unlike discretionary consumer services, plumbing and MEP work is largely non-discretionary—buildings require functioning mechanical, electrical, and plumbing systems regardless of economic conditions. This provides relative stability during downturns while allowing participation in construction booms during expansions.

Additionally, the shift toward energy efficiency and building automation is creating new revenue opportunities. Retrofitting older buildings with modern HVAC systems, smart controls, and water conservation technologies requires exactly the expertise that established MEP services companies possess.

For ACME, the immediate focus will be on maintaining service quality and customer relationships during the ownership transition. Andracchio's comments suggest he understands this priority: "For more than 75 years, ACME has built a reputation for quality, integrity, and partnership in the Triangle construction community and as a reputable service provider for residential and commercial property owners. It's an honor to be entrusted with a legacy this strong, and I'm committed to supporting the team, serving our customers, and building on what has made ACME so respected for so long."

Beyond operational continuity, the company will likely pursue several growth initiatives. Andracchio's network in the Triangle development community should help secure larger commercial projects and establish relationships with major property management firms. His experience with complex construction projects may also enable ACME to bid on more sophisticated MEP installations that smaller competitors cannot handle.

Acquisitions will almost certainly follow. The announcement explicitly identifies ACME as a "platform investment," private equity terminology for a foundational acquisition intended to anchor a buy-and-build strategy. Andracchio's mandate includes identifying "future acquisition opportunities," suggesting Broadtree plans to add complementary businesses—potentially electrical contractors, HVAC specialists, or plumbing companies in adjacent markets.

The firm may also pursue vertical expansion, adding capabilities like design-build services, preventive maintenance contracts, or emergency response services that increase customer lifetime value and create recurring revenue streams.

Holland & Knight served as legal counsel to Broadtree Partners for the transaction, according to the announcement. The involvement of a major national law firm suggests a sophisticated deal structure, likely including earnouts, rollover equity for the Tilley family, and performance-based compensation for Andracchio tied to growth milestones.

While Broadtree did not disclose its funding sources for the acquisition, the firm typically structures deals using a combination of equity from its funds and debt financing. As a lower middle market private equity firm, Broadtree focuses on smaller transactions that often receive less attention from larger buyout firms but can generate attractive returns through operational improvements and strategic growth.

The ACME transaction reflects broader trends in private equity's approach to service businesses. As valuations for technology companies and other high-growth sectors have climbed, many firms have turned to "boring" but profitable service businesses that generate steady cash flows and offer consolidation opportunities.

The MEP services sector has attracted increasing private equity interest in recent years, with numerous platform investments and rollup strategies launched across the country. This capital influx is professionalizing an industry that has historically operated on relatively informal management practices, introducing sophisticated financial controls, digital tools, and talent management systems.

For family-owned businesses in the sector, this creates both opportunities and pressures. Owners who partner with private equity can access growth capital and liquidity while potentially remaining involved in operations. But they also face increasing competition from well-capitalized consolidators that can outbid them for acquisitions and invest more heavily in technology and marketing.

The ultimate winners will likely be businesses that can maintain the customer relationships and service quality that built their reputations while adopting the operational sophistication and growth strategies that private equity backing enables. ACME's challenge—and opportunity—is to prove that this balance is achievable.

The Broadtree-ACME transaction may not generate headlines like billion-dollar technology deals, but it represents a significant bet on the future of essential infrastructure services. As America's buildings age and energy efficiency mandates tighten, the demand for skilled MEP services will only increase. The question is whether private equity-backed consolidators can deliver the quality and reliability that customers expect while achieving the growth and returns that investors demand.

For the Tilley family, the deal represents a carefully planned succession that honors 78 years of family stewardship while positioning the business for its next chapter. For Broadtree, it's the foundation of what could become a significant regional or national MEP services platform. And for the Triangle market, it signals that even traditional service businesses are attracting sophisticated capital as the region's growth story continues.

The coming years will reveal whether this combination of legacy craftsmanship and growth capital can create something greater than either could achieve alone. In an industry built on trust and relationships, that may be the most important test of all.