M&A Deal Summary

Capital Alignment Partners and The Sterling Group Acquire American Pavement Preservation

On December 15, 2020, private equity firms Capital Alignment Partners and The Sterling Group acquired construction company American Pavement Preservation from Gateway City Capital Investors

Acquisition Highlights
  • This is Capital Alignment Partners’ 1st and The Sterling Group’s 3rd transaction in the Construction sector.
  • This is Capital Alignment Partners’ 4th and The Sterling Group’s 37th transaction in the United States.
  • This is Capital Alignment Partners’ 1st and The Sterling Group’s 1st transaction in Nevada.

M&A Deal Summary

Date 2020-12-15
Target American Pavement Preservation
Sector Construction
Buyer(s) Capital Alignment Partners
The Sterling Group
Sellers(s) Gateway City Capital Investors
Deal Type Secondary Buyout
Advisor(s) SLATE Partners
Riveron Consulting (Financial)
Bryan Cave Leighton Paisner LLP (Legal)

Target

American Pavement Preservation

Las Vegas, Nevada, United States
American Pavement Preservation provides a full suite of services including slurry seal, seal coating, commercial paving, pavement patching, crack sealing and pavement marking to public and private sector customers in the Southwest United States. American Pavement Preservation was founded in 2009 and is based in Las Vegas, Nevada.

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Buyer(S) 2

Buyer
DESCRIPTION

Capital Alignment Partners is a private investment firm focused on providing equity and debt capital to lower middle-market healthcare and business services companies. The Firm looks to commit $5 to $40 million of flexible capital into companies with $10 to $100 million of revenue and $2 to $20 million of EBITDA. Prospective transaction situations include buyouts, consolidations, restructurings, recapitalizations, shareholder liquidity needs, and growth. Capital Alignment Partners was formed in 2009 and is headquartered in Nashville, Tennessee.


DEAL STATS #
Overall 4 of 5
Sector (Construction) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Nevada) 1 of 1
Country (United States) 4 of 5
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-10-01 Generations Behavioral Health

Youngstown, Ohio, United States

Generations Behavioral Health is dedicated to the improvement of the quality of life, by providing mental health and substance abuse services to adults. Generations Behavioral Health was founded in 2015 and is based in Youngstown, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-04-01 Aging with Comfort

Philadelphia, Pennsylvania, United States

Aging with Comfort is a provider of non-medical home care services to the elderly and disabled. Aging with Comfort was founded in 2014 and is based in Philadelphia, Pennsylvania.

Buy -
Buyer

The Sterling Group

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1982
PE ASSETS 9.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Sterling Group is a private equity firm focused on acquiring middle-market businesses within basic manufacturing, industrial services, and distribution. Sterling looks for companies valued from $100 to $1000 million with positive cash-flow, strong market positions, and potential to grow. Sterling avoids investments in financial services, real estate, healthcare, or information technology companies. The Sterling Group was formed in 1982 and is based in Houston, Texas.


DEAL STATS #
Overall 40 of 53
Sector (Construction) 3 of 4
Type (Secondary Buyout) 9 of 13
State (Nevada) 1 of 1
Country (United States) 37 of 50
Year (2020) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-10-08 Highline Warren

Memphis, Tennessee, United States

Highline Warren is a national distributor of automotive products, with 15 distribution centers and eight state-of-the-art manufacturing facilities serving multiple channels across the aftermarket industry. Highline Warren was founded in 2016 and is based in Memphis, Tennessee.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-03-01 Fencing Supply Group

Houston, Texas, United States

Fencing Supply Group is a platform focused on building a group of industry-leading, independent fencing distributors. FSG businesses serve professional fencing contractors who provide new, improvement, and repair fencing services across residential, industrial, commercial, and infrastructure end markets. Fencing Supply Group was founded in 2021 and is based in Houston, Texas.

Buy -

Seller(S) 1

SELLER

Gateway City Capital Investors

Carlyle, Illinois, United States

Category Private Equity Firm
Founded 2007
PE ASSETS 50M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Gateway City Capital Investors LLC is a private equity firm specializing in control and non-control investments in lower middle market Midwestern companies. Gateway targets growth businesses with positive cash-flows, attractive operating margins, defensible market positions, and diverse customers. The Firm looks to invest up to $10 million in transactions valued up to $50 million. Broad areas of interest include food/beverages, industrial and consumer products manufacturing, value-added distributions and business services. Prospective transaction types include LBOs, MBOs, recapitalizations, acquisition financings, growth capital financings, and corporate divestitures. Gateway City Capital Investors LLC was formed in 2007 and is based in Carlyle, Illinois.


DEAL STATS #
Overall 3 of 3
Sector (Construction) 1 of 1
Type (Secondary Buyout) 3 of 3
State (Nevada) 1 of 1
Country (United States) 2 of 2
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-04 Vantage Group

Vancouver, British Columbia, Canada

Vantage Group is a privately held airport developer, manager, and investor with a history at more than 30 airports around the world. The company’s current network comprises 10 airports, ranging from small destinations to large capital cities in Canada, the U.S., Jamaica, The Bahamas, and Cyprus. Vantage’s portfolio includes two major projects in New York: the redevelopment and management of Terminal B at LaGuardia Airport, and the company’s partnership with Jet Blue Airways in the planned redevelopment and management of Terminals 6 and 7 at JFK International Airport. Vantage Group was founded in 1994 and is based in Vancouver, British Columbia.

Sell -