Merger with Enercare Inc. subsidiary

Service Experts (an American Capital, Ltd. portfolio company)

Our attorneys represented Service Experts in its US$340 million merger with a subsidiary of Enercare Inc., one of Canada’s largest home and commercial services companies. Private equity firm and Service Expert’s parent, American Capital, Ltd., received US$244 million in proceeds, including fees and assuming full collection of escrow and other holdback amounts. As a result, American Capital says it realized 18 times its investment in Service Experts, a national HVAC sales and service firm, and generated a compounded annual rate of return of 184%, including interest, dividends, fees and realized gains.  American Capital acquired Service Experts in March 2013, and Arnold & Porter served as counsel to American Capital in that transaction.  The total cash consideration in the merger with Enercare is subject to customary working capital and other post-closing adjustments. The deal was named by Buyouts as “Turnaround Deal of the Year” for 2017.

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