Prospect Partners Sells Water Co. Holding
Prospect Partners has sold its interest in Water Co. Holding, LLC ("WaterCo"), of Lombard, Ill., in partnership with management and co-investor Stone Pointe, LLC, to Culligan International Company ("Culligan").
WaterCo, an independent water solutions platform in the Culligan dealer network, offers a comprehensive suite of water-related products and services — including water equipment, bottled water, water treatment, and equipment installation, maintenance and repair — to residential and commercial accounts nationwide.
WaterCo is led by Don Fuller, President and CEO, and John Capone, COO, veteran Culligan operating executives, who formed the company in 2011 with Prospect Partners and Stone Point through the acquisitions of 11 corporate franchises from Culligan with the goal of building the company into Culligan's leading U.S. dealer.
During Prospect Partners' investment period, WaterCo successfully bought and integrated more than 20 add-on acquisitions of other Culligan franchises, independent water service dealers, and providers of commercial or industrial water purification services, expanding the company's geographic footprint, market reach, and bottled water delivery capabilities. WaterCo now operates with territory exclusivity in 36 locations in 13 states.
"WaterCo has been a strong and exciting growth story for Prospect Partners," said Lou Kenter, a Founding Principal of Prospect Partners. "WaterCo today is one of the largest and fastest growing dealers in the Culligan network, producing consistent, recurring top-line growth for corporate."
Added Stone Pointe Principal Lee Vandermyde: "Don and John built a top-notch operating team and did an excellent job integrating, professionalizing, and improving the performance of WaterCo's 20-plus acquisitions to create a highly respected, team-oriented company that prided itself on growth, best-in-class practices, and customer service."
Said WaterCo's Fuller: "We have deeply valued the strategic guidance both Prospect Partners and Stone Pointe have provided to help steer the company to a successful outcome. We look forward to continuing our relationship and growth under the Culligan brand."
To discuss related opportunities, please reach out to Lou Kenter or Mike McInerney.
Prospect Partners Announces Recapitalization of Minuteman Security Technologies
Prospect Partners is pleased to announce the recapitalization, in partnership with management, of Minuteman Security Technologies, Inc. (Minuteman), of Andover, Mass.
Minuteman, founded in 1988, provides security technology solutions to enterprise organizations in a variety of markets, including transportation, higher education, healthcare, industrial/commercial, and municipal. As an industry-leading security systems integrator, Minuteman partners with best-of-class manufacturers to design, install, and maintain complex security solutions for its customers. Its offering includes access control systems, video surveillance, emergency communications, intrusion detection systems, and public safety security solutions.
Long a top security system solutions provider in the New England region, Minuteman recently announced its national expansion, and now operates five regional offices. Joseph Lynch, CEO, and George Yannokopolous, President and COO, lead the company.
"Minuteman is a dominant niche systems integrator with a great brand name, exceptional product lines, and an excellent reputation for service quality," said Brett Holcomb, a Principal of Prospect Partners. "Over the years, the company has consistently been recognized for its services, innovation, and growth."
In 2017, Minuteman finished 38th in SDM magazine's annual ranking of the Top 100 Systems Integrators, climbing 15 positions from 53rd in 2016.
Going forward, Minuteman seeks to invest in add-on acquisitions of other security integrators that specialize in enterprise systems.
To discuss related investment opportunities, please reach out to Brett Holcomb or Lou Kenter.
Prospect Partners Builds New Platform in Commercial Landscaping Management Services
Prospect Partners is excited to announce the recapitalization, in partnership with management, of Bland Landscaping Company, Inc. (Bland Landscaping), of Apex, North Carolina.
Bland Landscaping is one of North Carolina's leading full-service providers of landscape design, installation, enhancement, and maintenance services for commercial properties and high-end residential estates. The company, established in 1976, primarily serves offices, hospitals, universities, municipalities, and homeowner associations.
Over the years, Bland Landscaping — whose in-house team of nearly 300 landscape experts includes professional turfgrass and horticulture managers, landscape designers, chemical technicians, and floriculturists — has developed a strong reputation for sustainability and excellence, earning more than 100 state and national awards for environmental improvement and landscape excellence. Second generation owners Kurt Bland, President and CEO, and Matt Bland, CFO and COO, lead the company.
"Bland Landscaping is a rapidly growing niche market leader long known for its superb commercial landscape maintenance and management services, innovation, commitment to the environment, and great customer relationships," said Erik Maurer, a Principal of Prospect Partners. "We look forward to supporting management as they continue to scale the company and expand its regional presence."
Going forward, Bland Landscaping seeks to invest in add-on acquisitions of well-respected, local providers of commercial landscape management services based in the Southeast and Mid-Atlantic states.
Bland Landscaping becomes Prospect Partners' 50th portfolio company overall, and the 14th in the firm's current fund, Prospect Partners III, L.P.
To discuss related investment opportunities, please reach out to Erik Maurer or Brad O'Dell.
Prospect Partners Sells Codel Entry Systems
Prospect Partners and other shareholders have sold their interests in Codel Entry Systems, Inc. (Codel), of Tacoma, Wash., to Trimlite Mfg. Inc., a manufacturer and distributor of exterior and interior doors based in Renton, Wash.
Codel fabricates, markets, and distributes exterior door entry systems for the residential housing market principally in the Pacific Northwest and western Canada. Prospect Partners partnered with investment firm Montgomery, Shelton & Company and Codel founder and President Brett Moss to recapitalize the business in 2005. Since that time, Codel, which specializes in custom and pre-hung steel and fiberglass doors, has become a regional leader in residential entry door systems in the new construction and remodeling market segments. Codel's customers include door shops, home improvement retailers, and lumber yards, which in turn service builders, contractors, and developers.
"Codel has been a gratifying investment for Prospect Partners," said Maneesh Chawla, a Principal of Prospect Partners. "Through the leadership of founder Brent Moss, the company has built a tremendous reputation for its quality, short lead times, and superior customer service, and has achieved strong growth by entering major new geographic markets, expanding its product line, and developing new distribution channels and customers. We have enjoyed working with the entire Codel team, and believe the company is well-positioned for continued growth."
"It has truly been a pleasure to work with Prospect Partners and Montgomery Shelton through the years," Moss said. "They are true partners we could count on; a smart, ethical team we all very much respected."
To discuss related investment opportunities, please reach out to Brett Holcomb.
Prospect Partners Sells Summit Companies
Partners has sold its interest in Summit Companies ("Summit"), the upper Midwest's largest fire safety services provider, to private equity firm CI Capital Partners. Prospect Partners initially recapitalized the St. Paul, Minn.-based Summit in 2006 with management and outside executive Jeff Evrard, who became Summit's CEO.
Summit is a diversified provider of fire life safety services founded in 1999 by its president, Quint Rubald. Summit's end-to-end capabilities include inspection, testing and monitoring, service and repair, installation, and consulting services. During Prospect Partners' investment period, through a combination of new branch openings and more than 20 acquisitions, Summit successfully expanded into new geographic markets and lines of business. Summit now has 11 locations in five Midwestern states, and services more than 35,000 commercial, industrial, government, healthcare, and multi-family residential facilities annually.
"Summit has been a strong and exciting growth story for Prospect Partners," said Lou Kenter, a Founding Principal of Prospect Partners. "In 2006, the company was primarily focused on fire sprinkler design, installation, and servicing in Minnesota and Iowa. Jeff, Quint, and their talented team had a bigger vision — to become the regional leader, a one-stop shop capable of round-the-clock management of the entire fire life safety systems of nearly any building."
"Management did an excellent job executing and achieving its strategic plan," added Brad O'Dell, a Principal of Prospect Partners. "Summit's successful completion and integration of approximately two dozen acquisitions not only built a bigger company, but created a more recurring, value-added aftermarket services platform. Throughout, Summit maintained its high standard for client service and technical excellence."
Said Summit CEO Evrard: "Prospect Partners has been an excellent partner, personally and professionally, for the last 10 years. Their counsel, support, and steadfast commitment to our vision helped us achieve significant growth. We look forward to continuing our upward trajectory with CI Capital Partners."
To discuss related investment opportunities, please reach out to Lou Kenter or Brad O'Dell.
Prospect Partners Recapitalizes QMI Security Solutions
Prospect Partners is excited to announce its recapitalization, with management, of QMI Security Solutions, Inc. (QMI), of Itasca, Ill.
QMI is the leading manufacturer of physical security and protection products for commercial and residential applications, offering stylish, high-quality barriers that deter retail break-ins, prevent theft, and protect against storms. QMI provides security protection for both exterior and interior spaces in addition to repairs and replacements. The company's custom products include rolling shutters for storefronts, counters, and cases, as well as side folding shutters, hurricane rolling shutters, and screens. QMI reaches a diverse customer base of retail bank chains, mass merchandisers, pharmacies, wireless stores, and households in the U.S., Canada, Mexico, and the Caribbean. Jim Miller, who founded the business in 1986, will continue to lead QMI as President and CEO.
"QMI is an exceptional niche market leader, with top-rated products, a deep commitment to innovation, and a 'customer-first' operating strategy," said Brett Holcomb, a Principal of Prospect Partners. "QMI has consistently set the industry standard for product design and capabilities. We are excited to partner with Jim and his team to continue building upon the company's strong brand going forward."
QMI seeks add-on acquisitions of manufacturers of physical security products for a variety of end markets.
To discuss related investment opportunities, please contact Brett Holcomb or Rick Tuttle.