Redwood Services Roll-Up Reaches $1.1 Billion Valuation

Redwood Services has built a $1.1 billion platform by buying into local HVAC, plumbing and electrical contractors without erasing their names. The Memphis-based investment firm keeps local leadership and branding intact while running recruiting, marketing, technology and acquisitions from behind the scenes. Franchise and multi-unit operators watching the space should take note of a very different consolidation model.

A quieter kind of roll-up

Founder Richard Lewis started Redwood in 2020 with backing from Union Main Group, adding Tucson-based Rite Way Heating, Cooling & Plumbing as the first partner. By May 2025 the network had grown to 19 companies, more than 2,500 employees and over $500 million in annual revenue, which drew a significant equity investment from Altas Partners.

Scale accelerated through 2026

This year Redwood acquired the five-brand Sierra Platform from SE Capital, adding roughly 400 employees, more than 40,000 customers and operations in Las Vegas, Denver, Boise and Tucson. In July the company entered Oklahoma through Hendrick Heat, Air & Plumbing, which brought over 90 employees and 25,000 customers into the network.

Why operators should watch this model

Redwood's bet is that density and shared infrastructure can scale a service business without forcing owners to give up their name or their team. For franchisors competing for the same acquisition targets, that pitch is a direct challenge: contractors weighing a sale now have an alternative to selling into a brand that erases their identity.