Secondary Buyout • Construction

Main Street Capital Acquires Cody Pools

On March 11, 2020, private equity firm Main Street Capital acquired construction company Cody Pools from Prospect Partners and Stone Pointe

Acquisition Context
  • This is Main Street Capital’s 3rd transaction in the Construction sector.
  • This is Main Street Capital’s 109th transaction in the United States.
  • This is Main Street Capital’s 40th transaction in Texas.

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M&A Deal Summary

Date March 11, 2020
Target Cody Pools
Sector Construction
Buyer(s) Main Street Capital
Sellers(s) Prospect Partners
Stone Pointe
Deal Type Secondary Buyout

Target Company

Cody Pools

Georgetown, Texas, United States
Cody Pools is a custom swimming pool builder, serving the residential markets throughout Texas and commercial pool markets in the U.S. Cody Pools was founded in 1994 and is based in Georgetown, Texas.
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Buyer Overview 1

Buyer

Main Street Capital

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 8.7B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Main Street Capital is a public investment firm that invests in mid-market companies to support ownership transitions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. Main Street looks for businesses opearting in basic industries with positive cash-flow and and defensible competitive advantages. Main Street generally invests $5 to $125 million in companies with $10 to $150 million of revenue and EBITDA of $3 to $20 million. Investments are usually in the form of term debt and/or direct equity. Main Street Capital was formed in 1997 and is based in Houston, Texas.


Deal Context for Buyer #
Overall 109 of 146
Sector: Construction 3 of 3
Type: Secondary Buyout 10 of 13
State: Texas 40 of 44
Country: United States 109 of 146
Year: 2020 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-06 NinjaTrader Group

Chicago, Illinois, United States

NinjaTrader Group is a provider of trading software and brokerage services to active traders. NinjaTrader Group was founded in 2003 and is based in Chicago, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-03-16 MPI Custom Steel Doors & Frames

Corbin, Kentucky, United States

MPI Custom Steel Doors & Frames manufactures standard and custom steel doors and frames for commercial and institutional buildings, including specialized solutions such as windstorm, sound-rated (STC), thermal, lead-lined and bullet-resistant doors. The Company was founded in 1980 and is headquartered in Corbin, Kentucky.

Sell -

Seller Profiles 2

SELLER

Prospect Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 470M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Prospect Partners, LLC is a lower middle-market private equity firm that focuses on management buyouts and recapitalization of small companies. Prospect looks to invest $2 to $30 million of equity capital in companies with revenues of $15 to $100 million and EBITDA up to $10 million. The Firm targets opportunities in a variety of sectors spanning many sub-sectors of manufacturing, specialty distribution, and service. Transactions of interest include leverage recapitalizations, industry consolidations, corporate orphans, generational sales, under-managed companies, and backing independent equity sponsors. Prospect Partners was formed in 1998 and is based in Chicago, Illinois.


Deal Context for Seller #
Overall 34 of 39
Sector: Construction 1 of 2
Type: Secondary Buyout 13 of 15
State: Texas 4 of 5
Country: United States 34 of 39
Year: 2020 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-13 Waste Harmonics

Victor, New York, United States

Waste Harmonics is a technology-enabled facility services company that delivers a comprehensive suite of waste management solutions to blue-chip clients throughout North America. Waste Harmonics was founded in 2001 and is based in Victor, New York.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-17 ProClip USA

Madison, Wisconsin, United States

ProClip USA is a value-added designer and distributor of mounting solutions for commercial and consumer electronic devices. The Company uses a consultative approach to provide its customers with specific mounting solutions for mobile devices, including cell phones, tablets, smartphones, GPS systems, mobile printers, mobile scanning devices, two-way radios, and more. ProClip USA was founded in 2004 and is based in Madison, Wisconsin.

Buy -
DESCRIPTION

Stone Point is a private equity firm focused on control investments in small to mid-sized profitable companies. Stone Point will consider a variety of transaction situations including recapitalizations, family successions, management buyouts, shareholder liquidity needs, and corporate carve-outs. Sectors of interest include niche manufacturers of industrial or consumer products, service companies with unique offerings, and value-added distribution. Stone Point prefers situations where management remains in place, however this is not required. Stone Point is based in Naperville, Illinois.


Deal Context for Seller #
Overall 3 of 4
Sector: Construction 1 of 1
Type: Secondary Buyout 1 of 1
State: Texas 1 of 1
Country: United States 3 of 4
Year: 2020 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-19 American Mortgage Consultants

New York, New York, United States

American Mortgage Consultants, Inc. is a provider nationwide residential and consumer loan due diligence, quality control, securitization review, MSR review, advance assessment, servicing oversight, technology, and consulting services provider. AMC’s market-leading team of mortgage professionals provide customizable solutions to financial institutions nationwide.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-02 Vapor Power International

Franklin Park, Illinois, United States

Vapor Power International is a manufacturer of industrial and commercial steam generators. Vapor offers specialized industrial steam water-tube boilers, electric boilers, and thermal fluid heaters custom-made to order manufacturing processes requiring high-pressure heat/power. Vapor Power International was founded in 1903 and is based in Franklin Park, Illinois.

Sell -