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Heartwood-backed Norlee Group buys North Carolina electrical contractor

Heartwood-backed Norlee Group buys North Carolina electrical contractor

Money Moves

Eighth add-on since Heartwood's investment extends the Florida contractor into the Carolinas

October 7th, 2026: Madison Street Capital discloses advisory role on IEM sale

Overview

Updated Oct 23

Norlee Group finished buying IEM Electric, a Hickory, North Carolina industrial electrical contractor, on September 30, 2026. The deal was the eighth the Jacksonville, Florida company has completed since Heartwood Partners backed it.

Norlee has bought at a steady clip. It added Ireland Electric of Augusta, Georgia in May and Vintage Electric of Gainesville, Florida in August, then IEM at the end of September. IEM brings controls, automation and maintenance work and gives Norlee its first presence in North Carolina; the company says it has more than 800 employees across the Southeast.

Why it matters

Each acquisition takes another independent electrical contractor out of a fragmented regional market, concentrating Southeast industrial maintenance work under one owner.

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Key Indicators

8
Add-on acquisitions since Heartwood's investment
IEM Electric is the eighth bolt-on for Norlee Group under Heartwood ownership.
$1.4B
Heartwood assets under management
Heartwood's investments and commitments as of December 31, 2025.
800+
Norlee Group workforce
Professionals supporting projects across the Southeast, per the company's announcement.
1993
Year IEM Electric was founded
Paul Brooks Jr. started the business; Tony Mikeal joined as partner in 2012.

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People Involved

WB
Wally Budgell
Chief Executive Officer, Norlee Group
Leading the roll-up strategy
 Demetrios Dounis
Demetrios Dounis
Managing Partner, Heartwood Partners
Oversees the Norlee platform for the buyout firm
PJ
Paul Brooks Jr.
Founder, IEM Electric
Sold the business to Norlee Group in 2026
TM
Tony Mikeal
Partner, IEM Electric
Team remaining with the business after sale
BP
Barry Petersen
Senior Managing Director, Madison Street Capital
Led the IEM Electric advisory team
 Charles Botchway
Charles Botchway
Chief Executive Officer, Madison Street Capital
Announced the firm's advisory role

Organizations Involved

Norlee Group
Norlee Group
Commercial and industrial electrical contractor
Acquiring platform — eighth add-on completed

Florida-based electrical and technology contractor operating across the Southeast with more than 800 employees.
Heartwood Partners
Heartwood Partners
Private equity firm
Backing the Norlee roll-up from Heartwood Partners IV fund

Middle-market buyout firm managing over $1.4 billion in investments and commitments (as of December 31, 2025).
EI
IEM Electric, Inc.
Industrial electrical contractor
Acquired — to adopt the Norlee Group name after integration

North Carolina industrial electrical contractor serving food, chemical, automotive, steel, cable, material handling and pharmaceutical customers.
Madison Street Capital
Madison Street Capital
Investment bank
Advised IEM Electric on the sale to Norlee Group

International investment banking firm that served as exclusive financial advisor to IEM Electric on its sale to Norlee Group.

Timeline

1993 October 2026

7 events Latest: October 7th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. Madison Street Capital discloses advisory role on IEM sale

    Latest Advisory

    The Austin, Texas investment bank said it was exclusive financial advisor to IEM Electric on the sale to Norlee Group. Terms were not disclosed.

  2. Heartwood announces the deal

    Announcement

    Press release confirms the eighth add-on and extension into North Carolina.

  3. Norlee Group finalizes IEM Electric purchase

    M&A

    Norlee completes its eighth add-on acquisition, gaining a first foothold in North Carolina.

  4. Norlee Group acquires Vintage Electric of Gainesville, Florida

    M&A

    Norlee bought Vintage Electric, a Florida electrical contractor, expanding its North Central Florida presence ahead of the IEM Electric deal. Norlee announced the purchase in August 2026.

  5. Norlee Group acquires Ireland Electric Corporation

    M&A

    Norlee bought Ireland Electric, an Augusta, Georgia commercial and industrial electrical contractor founded in 1957 with about 125 employees, according to an industry M&A tracker. Terms were not disclosed. It was Norlee's sixth add-on.

  6. Tony Mikeal joins as partner

    Partnership

    Mikeal partners with Brooks; the company incorporates as IEM Electric, Inc.

  7. Paul Brooks Jr. founds the business

    Founding

    Brooks starts the industrial electrical contracting business in the Hickory, North Carolina area.

Scenarios

1

Norlee Group announces a ninth add-on acquisition

Likely Resolves by Oct 5, 2027

Discussed by: The company's own stated acquisition strategy and Heartwood's buy-and-build track record

Norlee has described its strategy as adding strong regional contractors while preserving their customer relationships. Heartwood's principals have done more than 100 platform and add-on deals. With each purchase the platform gains scale in electrical, automation and maintenance services, making the next bolt-on a natural step within roughly a year.

2

IEM Electric completes its rebrand as Norlee Group

Likely Resolves by Q2 2027

Discussed by: The companies' own announcement — Norlee said IEM will adopt the Norlee Group name when integration finishes

Norlee stated that IEM Electric will begin operating under the Norlee Group name and brand once the integration period is complete. The experienced IEM team remains in place. If integration runs to plan, the acquired contractor's identity fades into the larger platform, signaling the roll-up is absorbing the deal successfully.

3

Platform heads for a sale or merger

Uncertain Resolves by Q3 2028

Discussed by: PE Hub and industry observers tracking Heartwood's fund cycle

Private equity funds have limited lives, and Heartwood is investing from Heartwood Partners IV. Once a roll-up reaches critical mass — multiple states, 800-plus employees, a full services bundle — the owner's exit options widen: a sale to a larger contractor, a strategic buyer, or a recapitalization. The eighth add-on puts the platform in that territory.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1994 onward

EMCOR Group (1994)

Formed in 1994, EMCOR grew by buying dozens of independent electrical and mechanical contractors across the United States, consolidating a fragmented trades market into a single national services firm.

Then

Became one of the largest electrical and mechanical construction services companies in North America and a Fortune 500 firm with a public listing.

Now

Showed that regional contracting businesses could be stitched into a national platform with shared back office, national accounts and broader service lines.

Why this matters now

The same buy-and-build logic — consolidate independent contractors, then scale — drives Norlee Group's roll-up of Southeast electrical and technology firms today.

1997 onward

Comfort Systems USA (1997)

Launched in 1997, Comfort Systems USA used acquisitions to build a national heating, ventilation and air conditioning (HVAC) services company, folding regional contractors under one brand.

Then

Grew through dozens of bolt-on deals and listed on the New York Stock Exchange.

Now

Became a benchmark for services roll-ups that keep local teams in place while centralizing administration and sales.

Why this matters now

Norlee is following the same playbook in electrical and technology contracting — preserving local customer relationships while adding the scale of an 800-person platform.

Sources

(12)
+6
PR Newswire The Norlee Group PE Hub The Morganton News Herald Public LinkedIn (Norlee Group) Madison Street Capital The Daily Buyout Exitr PR Newswire The Norlee Group The Norlee Group