Investment Firm Acquires Majority Stake in RSG
Orangewood Partners, a private investment firm focused on business services, franchises, and multi-unit businesses, has acquired a majority interest in Refrigerated Solutions Group (RSG), parent company of the Norlake and Master-Bilt brands. RSG will serve as the foundation of THRM, Orangewood’s newly established platform focused on acquiring, building, and improving technology in foodservice equipment and services businesses. Dave Brewer, former executive vice president and COO of Middleby, is partnering with Orangewood to establish the THRM platform.
Orangewood’s decision to invest in commercial refrigeration was led by Jake Brewer, managing director of portfolio company operations. The company sees several long-term trends driving demand for refrigeration equipment, including the growth of off-premises food preparation, labor shortages, higher operating costs, changing food safety requirements, and increased use of automation in commercial kitchens. Orangewood also drew on its experience owning and operating more than 400 quick-service restaurants. The company acquired RSG outside of a formal auction process, while existing shareholders retained a significant ownership stake as RSG moves into its next phase of growth.
In a news release, Orangewood said RSG provides the operational scale and industry experience it plans to use to build a broader commercial foodservice equipment and services platform. Through THRM, Orangewood plans to accelerate organic growth, pursue strategic acquisitions, and expand into adjacent products, services, and technology solutions.
“The commercial foodservice equipment industry is a market with a large number of independent operators, and we see a real opportunity to build a platform that brings together strong businesses with complementary products and customer relationships,” said Dave Brewer, founder and chairman of THRM. “RSG gives us an excellent starting point to build from, with outstanding brands, manufacturing expertise, and longstanding relationships across the foodservice industry. I’m excited to partner with Orangewood and the RSG team as we invest in the business and pursue opportunities to expand the platform.”
To support the THRM platform, Orangewood has assembled a dedicated leadership team. In addition to Brewer, Chris Duffy, former president of Middleby’s Coffee Solutions Group, will serve as CEO of THRM. Chuck Sonsteby, current member of the Darden Board of Directors and former CFO of Brinker International, has also joined the THRM Board of Directors.
“Our vision for THRM is to build a scaled platform of businesses serving the commercial foodservice equipment industry,” Duffy said. “RSG provides a strong foundation for that strategy with its respected brands and in-house manufacturing pipeline and service capabilities. We’re excited for RSG to expand its presence in this highly fragmented market and continue to scale the THRM platform.”
Aaron Brown will continue to serve as CEO of Refrigerated Solutions Group. “Over the past several years, our team has strengthened RSG’s operations and deepened relationships with customers across our end markets,” he said. “We are excited about this next chapter for the business and the opportunity to continue investing in our brands, our service capabilities, people, and new avenues for growth.”