Introduction
In a significant step for its regional growth strategy, Norlee Group has acquired Beaumont Electric Company (BEC), a long-standing electrical services contractor based in Naples, Florida. The deal, backed by lower-middle-market private equity firm Heartwood Partners, bolsters Norlee’s position in Southwest Florida and reinforces its broader ambition to build a full-service electrical and mechanical platform throughout the Southeast.
Deal Summary
Buyer: Norlee Group, a Jacksonville, Florida-headquartered platform offering integrated electrical, mechanical, low-voltage, design/build, and underground infrastructure services.
Seller / Target: Beaumont Electric Company, founded in 1979 and one of the more established electrical contractors in Southwest Florida.
Date Closed: September 30, 2025.
Geographic Scope: Naples and broader Southwest Florida.
Business Activities: BEC provides electrical construction services for residential and commercial projects, including new builds, renovations, and ongoing maintenance.
Deal Rationale: According to Norlee CEO Wally Budgell, the acquisition is not just a geographic expansion - it aligns values, expands capacity, and positions Norlee to capitalize on growth in a dynamic, rapidly developing region.
Heartwood’s managing partner, Demetrios Dounis, credits the deal with advancing Norlee’s goal of becoming a leading provider of integrated electrical and mechanical solutions in the Southeast.
Industry Context
The acquisition of BEC by Norlee reflects a broader trend in the contracting services space: the consolidation of regional electrical and mechanical service providers into platform companies. Electrical contractors remain fragmented with many small, local businesses operating independently. But private equity firms have increasingly recognized that consolidating these firms brings scale, cross-selling opportunities, and operational synergies, especially in fast-growing geographies such as the Sun Belt.
According to market-intelligence sources, M&A activity in electrical contracting continues to be robust, with buyers focusing on recurring service, maintenance work, and design/build capabilities. Norlee’s acquisition strategy bolting on local players like BEC mirrors the playbook of other PE-backed consolidators in the sector.
Lower-Middle-Market Roll-Up Perspective
From a lower-middle-market private equity vantage point, Norlee’s strategy provides a textbook example of a platform roll-up. Heartwood Partners first made a growth investment in Norlee in late 2024, giving the company resources to pursue add-ons. Since then, Norlee has acquired several regional electrical firms (e.g., AEC Electrical, Regency Electric, Allstate Electric), and now Beaumont Electric.
This is not just about scale. By integrating highly regarded local contractors with deep client relationships, Norlee is building a differentiated capability: a full-service electrical and mechanical platform that can serve a wide variety of end markets—commercial, healthcare, multi-family, education, hospitality, and more. The strategy aligns with Heartwood’s lower-leverage, cash-yield-oriented model, which supports disciplined growth without overextending on debt.
Why This Sector Is Attractive for Roll-Ups
Several factors make the electrical contractor space ripe for consolidation:
- Predictable Recurring Revenue: Maintenance, service, and infrastructure contracts provide stable cash flow.
- Fragmentation: Many small players are owner-operated, making them ideal bolt-on targets.
- Geographic Tailwinds: Regions like Florida are seeing population growth, construction activity, and infrastructure demand.
- Cross-Sell Potential: Merged platforms can leverage combined capabilities (mechanical, low-voltage, design/build) to offer integrated solutions.
- Operational Efficiency: Consolidation allows for shared back-office functions, procurement benefits, and more efficient capital deployment.
Conclusion
The Beaumont Electric acquisition marks another important step for Norlee Group in building a comprehensive, Southeast-focused technical services platform. For investors, it demonstrates how a PE sponsor like Heartwood can execute a disciplined roll-up strategy by backing a strong management team, using conservative leverage, and targeting high-quality, regionally anchored service businesses. For operators and founders in the electrical contracting world, it’s further proof that consolidation remains a compelling exit and growth path but only if aligned with a strategic vision and a capital partner that understands the sector’s dynamics.
Published On
December 4, 2025
Category
HVAC/Plumbing/Electrical
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