Fidelity's Florida Push Signals Broader Industry Consolidation

HUNT VALLEY, MD – December 11, 2025 – In a move that underscores a powerful consolidation trend sweeping through the building services sector, Fidelity Building Services Group announced its acquisition of St. Johns Air, a prominent HVAC and refrigeration provider in Northeast Florida and South Georgia. The deal marks another deliberate step in Fidelity's aggressive national expansion, bringing a well-regarded regional player into its rapidly growing portfolio and signaling significant shifts for commercial and industrial clients, including those in mission-critical sectors like healthcare.

The Anatomy of a Strategic Partnership

The acquisition, effective today, integrates St. Johns Air into Fidelity's national platform, which spans over 75 locations. For Fidelity, a national leader in HVAC, building automation, and emergency power solutions, the move provides a crucial entry point into the high-growth markets of Florida and Georgia. For St. Johns Air, it offers the backing of a national powerhouse.

Fidelity’s leadership framed the acquisition not as a simple buyout, but as a strategic partnership rooted in shared values. "Our high-level acquisition approach is rooted in collaboration and designed to support long-term growth," said Dave Lanphar, CEO and Partner of Fidelity. "St. Johns Air demonstrates the integrity, customer-first mentality, and operational excellence we look for in our partners. Their strong reputation and technical capabilities in HVAC and refrigeration services make them an ideal addition to our national platform."

This sentiment was echoed by St. Johns Air President, Derek Krzywonski, who views the move as an engine for future development. "This partnership allows us to continue building on our legacy of providing outstanding service, while gaining the resources and support of a nationally recognized organization," he stated. "Together, we'll be able to expand opportunities for our Team Members and deliver even greater value to the clients and communities we serve."

The synergy appears clear: St. Johns Air brings a loyal client base across diverse industries—from industrial manufacturing and data centers to schools and financial institutions—and deep regional expertise. Fidelity provides the capital, expanded service lines, and economies of scale necessary to compete for larger, more complex projects.

A Pattern of Aggressive, Calculated Growth

This acquisition is not an isolated event but the latest chapter in a carefully orchestrated growth story. Fidelity Building Services Group, with roots stretching back to 1945, has accelerated its expansion dramatically in recent years, fueled by a partnership with private equity firm Onex Partners, which acquired Fidelity in late 2021. The mandate from Onex was clear: support Fidelity’s organic growth and fast-track its successful acquisition strategy.

A look at Fidelity’s recent activities reveals a clear pattern. In just the past two years, the company has brought several key regional players into its fold. These include the June 2025 acquisition of Cyrco, Inc., a cooling tower specialist in North Carolina, and the July 2025 purchase of H.E. Neumann Company, a mechanical contractor serving West Virginia, Ohio, and Pennsylvania. Prior to that, Fidelity absorbed Nason Mechanical Systems, merged building automation firms Smart Building Technologies and HVAC Concepts, and expanded into the Southeast with South Florida Controls and AIR Technologies.

This strategy targets established companies, often with revenues between $20 million and $100 million, that have strong service departments and proven management teams. By preserving the local operational autonomy and culture of the companies it acquires, Fidelity aims to integrate their regional strengths into a cohesive national network without alienating the employees and customers who built the business. The acquisition of St. Johns Air fits this mold perfectly, adding a key geographic piece to Fidelity’s expanding puzzle.

Reshaping the Regional Market Landscape

Fidelity’s entry into the Northeast Florida and South Georgia markets through a respected local name like St. Johns Air is set to intensify competition. The regional market, served by a mix of independent contractors and branches of larger firms, will now contend with a competitor that combines local presence with the vast resources and comprehensive service offerings of a national leader. Fidelity’s platform extends beyond core HVAC to include building automation, energy solutions, and emergency power systems—a suite of services that can be bundled to attract large institutional and industrial clients.

This move is emblematic of a wider trend in the HVAC and building services industry. The sector, long considered fragmented, is undergoing significant consolidation. Private equity firms have shown a voracious appetite for these businesses, attracted by their recurring revenue streams from service and maintenance contracts and their essential role in the modern economy. With valuations for strong service-oriented companies reportedly reaching multiples of 8x EBITDA or more, the incentive for regional owners to sell to larger platforms is high.

For customers, this consolidation presents a dual-edged sword. On one hand, larger integrated providers like the newly expanded Fidelity can offer a single point of contact for a wide array of building needs, potentially leading to greater efficiency, standardized service quality, and access to cutting-edge technology. On the other hand, it can reduce local competition, potentially leading to less pricing flexibility and a one-size-fits-all approach that may not suit all clients. The challenge for Fidelity will be to deliver the benefits of scale while retaining the customer-centric focus that made St. Johns Air a trusted local partner.

Critical Systems for Critical Infrastructure

The implications of this consolidation extend deeply into sectors where building systems are not just about comfort, but about safety and operational continuity. Fidelity’s explicit focus on the healthcare, mission-critical, and government markets highlights the strategic importance of these services. In a hospital, for example, HVAC systems are not merely for temperature control; they are vital for maintaining sterile environments in operating rooms, managing infection control through air filtration and pressure differentials, and ensuring patient well-being.

Likewise, the emergency power systems that Fidelity provides are non-negotiable for healthcare facilities that must maintain life-support equipment and critical data systems during a power outage. The acquisition of a company like St. Johns Air, which serves data centers and other sensitive facilities, strengthens Fidelity’s expertise in managing environments where downtime is not an option.

By integrating St. Johns Air’s regional HVAC and refrigeration expertise with its own national capabilities in building automation and emergency power, Fidelity can now offer healthcare systems in the Florida and Georgia markets a more holistic solution for managing their physical plant. This integrated approach can be compelling for hospital administrators and facilities managers who are increasingly looking to streamline vendor relationships and ensure their infrastructure is resilient, efficient, and compliant with stringent regulatory standards. As healthcare systems themselves continue to consolidate and expand, they often seek partners who can scale with them, providing consistent service across a broad geographic footprint. The newly combined entity is now better positioned to be that partner, transforming a regional business transaction into a significant development for the region's critical infrastructure.