Chattanooga-based Alderman firm buys Combustion & Control Solutions boiler servicer, supplier

In its fifth acquisition in as many years, a Chattanooga-based equity investment firm has acquired one of the region's top boiler services and parts suppliers.

Alderman

announced Tuesday it has purchased Combustion & Control Solutions (CCS), a 17-year-old boiler services company that has grown to more than $6 million in annual sales and more than 30 employees in Chattanooga and its Nashville sales office. David Allen Tripp, who jointly owned the company along with Scott Overturf, sold the business this month and is retiring from the company. Overturf will stay with the company as operations manager.

David Flowers, who previously led the sales and engineering groups at CCS, has been elevated to CEO as part of the ownership change. Despite the ongoing challenges of the pandemic, Flowers and Alderman principals said they expect to grow the business and staff over time with additional investments and marketing through the larger Alderman business.

Alderman specializes in buying mature, profitable businesses in traditional manufacturing or distribution sectors in and around Chattanooga, including Southeastern Tool & Design acquired in 2016, Dal Industries bought in 2018, and Edwin Bohr Electronics acquired last year. Alderman also bought Majestic Stone in 2016 but sold that business last year.

CCS both installs and repairs boiler equipment for a variety of manufacturing, distillery, hospital and chemical businesses and is the primary supplier in the Chattanooga area of the top-selling boiler made by Miura, a Japanese-based boiler brand that is manufactured at a plant in Rockmart, Georgia.

"We're planning on offering more products and more services," Flowers said. "We quickly discovered that the founding principles of CCS were well aligned with those of Alderman. With the expertise and support that Alderman brings to this partnership, CCS is well poised to continue our best-in-class service and produce meaningful growth. The future looks very exciting."

Flowers said he expects a better year in 2021 after having to restrict some business last spring when many manufacturers either shut down or didn't allow outside vendors into their shops due to the coronavirus.

"It was tough for everyone," Flowers said. "We lived through a period where we were not allowed on customer sites, but we've emerged from that in a very strong position and will have the resources we need with this acquisition to grow even more."

Ben Brown, a principal and one of the founders of Alderman Enterprises, said CCS is a market leader in the service, repair, sales and installation of boilers and boiler systems and fits with Alderman's strategy to acquire mature businesses with potential for growth.

"We still see a lot of opportunity in traditional American manufacturing," Brown said.

The owners of CCS had been seeking a transition for several years and Brown said a deal was struck for the sale of the company in March just ahead of when the shutdowns provoked by the COVID-19 pandemic forced a redirection in the business in 2020 and a delay in the sale until this month.

CCS is located in a leased 14,550-square-foot factory and warehouse built in 1975 at 4016 Industry Drive. Terms of the sale were not disclosed, but Dun & Bradstreet estimates CCS had annual sales of $6.49 million.

Contact Dave Flessner at dflessner@timesfreepress.com or 423-757-6340.