Paceline supports Kassel’s acquisition of Arrow Electric.

An affiliate of Paceline Equity Partners, LLC (“Paceline”), a Dallas-based private equity manager, announced that it has made a $40 million preferred equity investment in Kassel Mechanical Holdings, LLC (“Kassel”). 

Kassel is a privately held provider of facility services focused on the installation and maintenance of mechanical, electrical, plumbing, fire suppression systems (collectively, “MEPF”), and other critical mechanical building systems to a diverse set of end-markets. 

Paceline’s equity investment is being made in conjunction with a broader recapitalization to support Kassel’s add-on acquisition of Arrow Electric, Inc. (“Arrow”), a privately held electrical contractor providing construction, design and maintenance services.

Sam Loughlin, Chief Executive Officer of Paceline, said “We are thrilled to work collaboratively with Kassel founder, Tom Werner, and the rest of the experienced management team to support the growth of Kassel, a fast-growing MEPF company with an established track record and exciting growth opportunities. 

Paceline has significant experience investing in building products and construction sectors, and we look forward to bringing our financial and operational expertise to help Kassel scale and accelerate its growth.”

Leigh Sansone, Chief Investment Officer of Paceline, added “This transaction reflects Paceline’s ability to source differentiated opportunities and provide flexible capital solutions. We are pleased to deliver a unique capital solution for Kassel to execute management’s growth strategy, which includes exciting organic and inorganic initiatives.”