M&A Deal Summary

Morgan Stanley Capital Partners Acquires Apex Companies

On February 1, 2023, private equity firm Morgan Stanley Capital Partners acquired environmental company Apex Companies from Sentinel Capital Partners and Yukon Partners

Acquisition Highlights
  • This is Morgan Stanley Capital Partners’ 1st transaction in the Environmental sector.
  • This is Morgan Stanley Capital Partners’ 41st transaction in the United States.
  • This is Morgan Stanley Capital Partners’ 1st transaction in Maryland.

M&A Deal Summary

Date 2023-02-01
Target Apex Companies
Sector Environmental
Buyer(s) Morgan Stanley Capital Partners
Sellers(s) Sentinel Capital Partners
Yukon Partners
Deal Type Secondary Buyout

Target

Apex Companies

Rockville, Maryland, United States
Apex is a multi-disciplinary environmental services firm with 28 branches located throughout the Eastern and Central United States. The company provides a broad platform of environmental services, including stormwater system design, engineering, and maintenance; ports, harbors, and water system design and engineering; environmental remediation; industrial hygiene services; and general site assessment, regulatory compliance, and environmental consulting work. Apex was formed in 1988 and is headquartered in Rockville, Maryland.

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Buyer(S) 1

DESCRIPTION

Morgan Stanley Capital Partners (MSCP) is the private investment arm of financial services firm and investment bank Morgan Stanley. MSCP looks to partner with founders looking to leverage Morgan Stanley's resources, as well as fund corporate carveouts, recapitalizations, buyouts, and industry consolidations. Areas of interest include business services, industrials, education, consumer products/services, food/beverage, retail, healthcare, and packaging. MSCP primarily targets businesses operating in North America valued between $75 and $750 million. Morgan Stanley Capital Partners is based in New York City.


DEAL STATS #
Overall 44 of 49
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 15 of 18
State (Maryland) 1 of 1
Country (United States) 41 of 46
Year (2023) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-10-17 Sterling Energy

Denver, Colorado, United States

Sterling Energy is a natural gas gathering, processing and marketing company serving oil and gas producers in the Denver-Julesburg Basin of northeast Colorado and the Williston Basin of northwest North Dakota. Sterling Energy was founded in 2000 and is based in Denver, Colorado.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-05-01 RowCal

Champlin, Minnesota, United States

RowCal is an HOA property management service provider, offering a comprehensive solution to better manage and maintain HOAs across the MN, CO, and TX markets. RowCal was founded in 2018 and is based in Champlin, Minnesota.

Buy -

Seller(S) 2

SELLER

Sentinel Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 11.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Sentinel Capital Partners is a private equity firm that targets investments in middle-market companies with strong management and 'attractive growth prospects'. Sentinel looks to invest up to $400 million of equity in companies generating EBITDA of up to $65 million. Sectors of interest include business services/outsourcing, consumer products and services, food and restaurants, franchising, and manufacturing. Prospective transaction situations include management buyouts, recapitalizations, corporate divestitures, take-privates, and growth capital financings. Sentinel Capital Partners was formed in 1995 and is based in New York, New York.


DEAL STATS #
Overall 68 of 69
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 30 of 30
State (Maryland) 2 of 2
Country (United States) 61 of 62
Year (2023) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-11-16 L2 Brands

Hanover, Pennsylvania, United States

L2 Brands is a manufacturer and supplier of branded collegiate-licensed apparel. L2 Brands provides a full apparel offering including high-quality t-shirts, fleece, and bottoms, as well as adjacent product categories such as spirit blankets and pillows. L2 Brands was founded in 1991 and is based in Hanover, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-04-03 ECM Industries

New Berlin, Wisconsin, United States

ECM Industries is a manufacturer and supplier of electrical products for construction, maintenance, lighting, irrigation, landscape supply, and gas utility markets. ECM Industries is based in New Berlin, Wisconsin.

Sell $1.1B
SELLER

Yukon Partners

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2008
PE ASSETS 640M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Yukon Partners is a mezzanine finance firm that works with private equity sponsors to fund a variety of investment situations. Yukon looks to invest $10 to $40 million to support buyouts, recapitalizations, take privates, and refinancings. Sectors of interest include automotive, building products, business services, consumer products, food/beverages, healthcare products/services, industrial manufacturing, niche manufacturing, and transportation/logistics. Prospective companies generally have revenues of $30 to $500 million and are profitable with EBITDA of $5 to $50 million. Yukon Partners was formed in 2008 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 28 of 28
Sector (Environmental) 1 of 1
Type (Secondary Buyout) 17 of 17
State (Maryland) 1 of 1
Country (United States) 27 of 27
Year (2023) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-10-28 Bradford Health Services

Birmingham, Alabama, United States

Bradford Health Services is a provider of substance abuse treatment and recovery services. Bradford offers early intervention services, crisis response, intensive outpatient care, partial hospitalization, and residential care, inpatient detox, and transitional living and life skills programming. Bradford Health Services was formed in 1977 and is based in Birmingham, Alabama.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-02-09 Worldwide Produce

Los Angeles, California, United States

Worldwide Produce is a distributor of fresh fruits, vegetables, dairy products, and specialty foods to independent and chain restaurants across the Western United States. Worldwide Produce operates two distribution facilities located in Los Angeles, CA, and Las Vegas, NV. Worldwide Produce was founded in 1989 and is based in Los Angeles, California.

Buy -