Redwood Services acquires the Sierra Platform from SE Capital.

Memphis-based Redwood Services — backed by Altas Partners — has acquired the Sierra Platform from SE Capital. The deal brings five regional residential HVAC, plumbing, and electrical brands under Redwood's umbrella: Sierra Air Conditioning & Plumbing (Las Vegas), Brothers Plumbing, Heating & Electric (Denver), Russett Southwest and Pioneer Plumbing (Tucson), and Ultimate Heating & Air (Boise).

The asset.

The Sierra Platform did over $100 million in residential revenue in 2025 and held more than 19,000 active membership agreements. Five Partner Companies, roughly 400 full-time teammates, more than 40,000 customers served annually — concentrated in some of the fastest-growing metros in the Southwest and Rocky Mountain regions. SE Capital had been building the platform since 2018.

What the multiple tells us.

Redwood itself traded at roughly 17x in 2025 when Altas Partners took its position. Now Redwood is buying the Sierra Platform at 14x+ on $15M+ of EBITDA. That's a classic multiple-arbitrage trade — paying a sub-platform multiple for assets that fold into and trade at the higher platform multiple over the next exit cycle.

This is the math that fuels the entire residential service roll-up cycle. If Redwood's blended trading multiple stays in the 17x range, paying 14x+ for sub-scale assets is genuinely accretive. The arithmetic works whether you ultimately exit to another sponsor, to a strategic, or to the public markets.

The broader pattern.

PE-backed HVAC platforms acquiring other PE-backed HVAC platforms is the defining M&A pattern of this cycle in residential service. SE Capital built Sierra. Altas-backed Redwood is now consolidating Sierra into its own platform. The Sierra brand becomes a regional vertical inside a larger national platform that itself will exit upward — either to another sponsor or to the public markets — at a multiple of what Redwood paid today.

Sponsor-to-sponsor trades like this one are what's driving the headline transaction volume in residential service right now. The end buyer in many cases isn't a strategic at all — it's the next platform up the chain.