Oct 11, 2023

Capstone Partners Advised National Grid on The Divestiture of Its Energy Management Business to Radius Mechanical

Capstone Partners advised National Grid on the divestiture of its Energy Management business—a division that services commercial energy plants—to Radius Mechanical. Terms of the deal were not disclosed.

Founded in 1996, National Grid Energy Management is a commercial energy service company that partners with businesses and municipalities to repair, maintain, and operate their energy plants. NGEM helps businesses in New York City and Long Island utilize renewable energy to grow more efficient and help protect the environment. In addition to renewable energy, NGEM successfully operates and maintains heating and power plant facilities within the NY Metropolitan area under long-term contracts and agreements, and its client list features a number of Fortune 500 companies. For more information, please visit here.

NGEM is primarily known for its important role in helping maintain the heat plant in multi-family residential buildings operated by NYCHA, the largest public housing authority in North America. We are pleased that Radius Mechanical, NGEM’s new owner, is an experienced operator with knowledge of NYCHA properties and we wish them well for future success.

Ted PolkManaging Director, Capstone Partners

Radius Mechanical, located in New Rochelle, New York, provides large scale commercial mechanical services throughout the New York Metropolitan area and the acquisition of NGEM is complementary with its current operations. Founded in 2018, it is a minority- and veteran-owned business with expertise in engineering and technical services. Radius primarily operates in the Mechanical Engineering space within the Engineering, Accounting, Research, and Management Services sectors.

The expert investment banking professionals on the Capstone Partners’ Industrials team work with leading middle-market companies operating in the HVACR market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Industrials Banking Team, contact us here.