Arcapita Group Holdings Restricted (“Arcapita”), the worldwide different funding agency, introduced at present that it has acquired a majority fairness stake in C&Ok Paving (“C&Ok” or the “Firm”), one of many main suppliers of parking zone upkeep companies in the US.
The Firm’s President, Founder, and CEO will retain a major minority fairness stake and can proceed to guide the enterprise.
Over the previous 12 months, Arcapita has accomplished three non-public fairness acquisitions within the enterprise companies vertical, with a mixed worth of $715 million, increasing its Important Enterprise Providers portfolio and reinforcing its give attention to resilient enterprise fashions with predictable, recurring revenues.
The US parking zone upkeep trade is a $14 billion market, underpinned by recurring demand, regulatory necessity and restricted financial cyclicality. The trade will not be solely experiencing excessive development but in addition stays extremely fragmented, creating a powerful alternative for consolidation as bigger gamers search to scale and standardize companies throughout geographies.
C&Ok supplies maintenance-focused paving options, together with asphalt and concrete upkeep, pavement markings, seal coating and different preventative companies required for the maintenance of parking heaps. The Firm is among the many main operators in a fragmented market, providing a scalable, vendor-managed platform with operations and long-standing vendor relationships throughout the nation. The Firm’s blue-chip shopper base consists of large field retail, property administration, grocery, and monetary companies, amongst many others, with a mean shopper tenure of eight years throughout its high 10 clients.
Hisham Al Raee, CEO of Arcapita, mentioned: “Companies like C&Ok signify the core of our Important Enterprise Providers method: resilient fashions with recurring demand, diversified clients, and the potential to scale in fragmented markets. With Arcapita’s assist, C&Ok is positioned to develop, and proceed delivering the reliable companies that clients have come to depend on.”
Neil Carter, Managing Director of US Non-public Fairness at Arcapita, added: “We’re thrilled to accomplice with Don and the crew at C&Ok. The Firm’s robust market place, asset-light mannequin, and monitor document of constant efficiency makes it an excellent match for our portfolio. The Firm has grown revenues organically yearly because it was based, which speaks to the repute Don and crew have constructed out there. We see compelling alternatives to speed up development whereas preserving the excessive service requirements for which C&Ok is thought.”
Don Koch, President, Founder, & CEO at C&Ok Paving mentioned: “Partnering with Arcapita marks an thrilling chapter for C&Ok. Over the previous twenty years, we have now constructed a platform outlined by high quality, reliability, and long-term shopper relationships. With Arcapita’s assist and experience, we’re well-positioned to proceed scaling nationally, pursue strategic acquisitions, and improve our choices to raised serve our clients. We sit up for the worth this partnership will carry to our enterprise and our purchasers.”
Raymond James acted because the unique monetary advisor for C&Ok Paving.
