Zephyr, a new home services roll-up, raises $60 million

A new home services roll-up, Zephyr, yesterday announced it raised $60 million from energy-focused firm Elda River Capital to continue acquiring HVAC contractors nationwide. 

Zoom out: Launched quietly in 2022 with ~$40 million in the bank, Zephyr has acquired 12 businesses to date, including in D.C., Florida, Texas, and Colorado. 

What’s happening: The company expects to cross $100 million in revenue this year, with hopes to eclipse $500 million within five years, its CEO told Axios. 

• “Zephyr acquires local service providers in targeted markets, integrates them into a unified technology platform, and drives growth at those local brands with centralized support in recruiting, training, marketing… and more,” the press release said.

Of note: Zephyr didn’t respond to Homepros' request for comment about how it structures deals for owners.

The big picture: Capstone Partners estimates that, as of this June, over 900 HVAC acquisitions have been completed since 2018.

• The trend has garnered mainstream media attention, too, with the Wall Street Journal publishing five stories on the trades this year alone. 

What’s next: Zephyr plans to close two more acquisitions before January, and use the new capital to fund future acquisitions and invest in its technology platform.

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