Kelvin Group, a national provider of industrial and commercial mechanical refrigeration services backed by Southfield Capital, acquired PermaCold Engineering Inc. of Portland, Oregon — marking Kelvin's entry into the Pacific Northwest and its tenth-plus acquisition since partnering with Southfield Capital in 2017. PermaCold, founded more than 30 years ago by Steve Jackson and Randy Cieloha, is recognised for its expertise in ammonia and CO2 refrigeration systems serving clients across the western United States.

Kelvin Group CEO Harry Gray described the significance: 'Kelvin's acquisition of PermaCold represents an exciting milestone as the company continues its national expansion strategy by entering the Pacific Northwest. PermaCold's deep technical expertise, admired technician team, and customer service focus make them a natural partner for Kelvin. Together, we look forward to offering an enhanced set of capabilities to support our combined national customer base.'

Who Are Kelvin Group and PermaCold?

Kelvin Group is building a national industrial and commercial refrigeration services platform — a segment that is adjacent to but distinct from the residential and commercial HVAC market that dominates most industry M&A coverage. Industrial refrigeration serves food processing, cold storage, distribution, pharmaceutical, and industrial process cooling applications — environments where ammonia and CO2 refrigerants are standard, system scale is large, and technical failure has immediate operational consequences for the facilities served.

PermaCold's specialisation in ammonia (NH3) and CO2 refrigeration systems is particularly valuable in the industrial refrigeration market. These natural refrigerants — used in large-scale cold storage, food processing, and brewery applications — require specific engineering expertise, safety management systems, and regulatory compliance knowledge (particularly for ammonia, which is covered under EPA RMP and OSHA PSM regulations for facilities above threshold quantities).

For Kelvin Group, PermaCold adds:

• Pacific Northwest geographic coverage: Portland and the surrounding Pacific Northwest market includes significant food processing, cold storage, and brewery industries — ideal end markets for PermaCold's specialisation

• Ammonia and CO2 expertise: These natural refrigerant systems are growing in prevalence as industrial operators respond to HFC phasedown and sustainability mandates, making expertise in their design and service increasingly valuable

• 30 years of established customer relationships: PermaCold's three-decade track record in western US industrial refrigeration represents relationships with food processors, cold storage operators, and industrial facilities that took decades to build

Kelvin Group, backed by Southfield Capital, acquired PermaCold Engineering Inc. of Portland, Oregon — completing its 10th-plus acquisition and reaching the Pacific Northwest with ammonia and CO2 refrigeration expertise that complements Kelvin's existing national industrial refrigeration portfolio.

Industrial Refrigeration as a Distinct M&A Category

The Kelvin-PermaCold transaction highlights a roll-up category that receives less coverage than residential and commercial HVAC M&A but is equally active: industrial and commercial refrigeration services. The food cold chain, pharmaceutical storage, and industrial process cooling markets share the same characteristics that attract PE to HVAC: mission-critical demand, recurring service revenue, fragmented independent contractor market, and technical complexity that creates barriers to entry.

Kelvin Group's portfolio already includes ARC Mechanical, Refrigeration Design and Service, RC&E LLC, HCG Associates, and JS Compliance — a diverse set of refrigeration and mechanical services companies that together form a national platform with coverage from the Pacific Coast to the Midwest and East. PermaCold adds the Pacific Northwest geography and the specific natural refrigerant expertise to a platform that is clearly executing a systematic geographic build-out.

Frequently Asked Questions

What is Kelvin Group?

Kelvin Group is a national industrial and commercial mechanical refrigeration services platform backed by Southfield Capital. The company has completed more than 10 acquisitions since 2017, building a portfolio of brands including ARC Mechanical, Refrigeration Design and Service, RC&E LLC, HCG Associates, and JS Compliance across the US.

What does PermaCold Engineering do?

PermaCold Engineering, founded 30+ years ago in Portland, Oregon, provides industrial refrigeration design, installation, and service for ammonia and CO2 refrigeration systems serving food processing, cold storage, brewery, and industrial applications across the western United States.

What is the difference between industrial refrigeration and commercial HVAC?

Industrial refrigeration serves large-scale cold storage, food processing, and industrial process cooling applications using ammonia, CO2, and other refrigerants in systems that can range from hundreds to thousands of horsepower. Commercial HVAC serves building comfort applications with smaller systems using HFC and HFO refrigerants. Both require EPA Section 608 certification but industrial refrigeration has additional regulatory requirements under EPA RMP and OSHA PSM for ammonia systems.