HFW Achieves Milestone with 10th Acquisition of Partner Firm

Deal News | May 08, 2025 | Veronis Suhler Stevenson LLC

VSS Capital Partners, a seasoned lower middle market-focused private investment firm, recently celebrated a milestone with their portfolio company, The HFW Companies. HFW successfully completed its acquisition of Southwest Engineers, a Texas-based civil engineering firm, marking its tenth strategic partner firm acquisition. This acquisition will extend HFW's outreach within the architecture and engineering industry, allowing further expansion into high-growth, resilient specialty services. HFW maintains its distinctive 'house of brands' model, which enables acquired companies to sustain individual branding, while benefiting from collective resources such as HR management and cross-selling provided by HFW's comprehensive platform. Since VSS partnered with HFW in 2021, the company has scaled notably with 500+ employees and substantial revenue growth through organic and M&A activities. As beneficiaries of VSS’s flexible capital solutions, HFW aims to fortify its foothold in high-growth U.S. regions while maintaining a customer base across various sectors, solidifying its status as a preferred acquirer in a fragmented market.

Sectors

  • Architecture and Engineering (AE)
  • Private Equity

Geography

  • United States – HFW and Southwest Engineers operate within the U.S., and HFW aims to expand within high-growth regions of the country.
  • Texas – Southwest Engineers, the newly acquired partner firm by HFW, is based in Texas which highlights the regional expansion within the state.

Industry

  • Architecture and Engineering (AE) – The article discusses the acquisition by HFW, a company operating in the Architecture and Engineering sector, aiming to expand its platform within this industry.
  • Private Equity – VSS Capital Partners is highlighted as a private equity firm sponsoring the growth of HFW through strategic investments and acquisitions.

Financials

  • Not disclosed – The financial terms of HFW's acquisition of Southwest Engineers were not disclosed.

Participants

NameRoleTypeDescription
VSS Capital PartnersPrivate Equity Firm and InvestorCompanyA private investment firm based in New York, providing flexible capital solutions for growth, recapitalizations, and acquisitions.
The HFW CompaniesAcquirer and Target CompanyCompanyAn AE professional services company focused on acquiring and supporting growth in architecture and engineering firms.
Southwest EngineersAcquired CompanyCompanyA Texas-based civil engineering firm specializing in wastewater treatment and water storage.
UB GreensfelderLegal AdvisorCompanyProvided legal advisory services to HFW for the acquisition.