Buyout (LBO, MBO, MBI) • Business Services

Source Capital and Canopy Capital Partners Acquire Archway Service Group

On May 15, 2025, private equity firms Source Capital and Canopy Capital Partners acquired business services company Archway Service Group

Acquisition Context
  • This is Source Capital’s 5th and Canopy Capital Partners’ 2nd transaction in the Business Services sector.
  • This is Source Capital’s 44th and Canopy Capital Partners’ 10th transaction in the United States.
  • This is Source Capital’s 3rd and Canopy Capital Partners’ 2nd transaction in North Carolina.

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M&A Deal Summary

Date May 15, 2025
Target Archway Service Group
Sector Business Services
Buyer(s) Source Capital
Canopy Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Archway Service Group

Shelby, North Carolina, United States
Archway Service Group is a repair and maintenance services provider for commercial food service equipment. Archway Service Group was founded in 2008 and is based in Shelby, North Carolina.
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Buyers Overview 2

Buyer

Source Capital

Atlanta, Georgia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2002
Size Small
Type Sector Agnostic
DESCRIPTION

Source Capital is a private equity firm that invests in mature, smaller companies in a variety of sectors. The Firm generally looks to support management-backed leveraged acquisitions, recapitalizations, growth financings, and various turnaround situations. Source Capital's broad industry focus includes business services, consumer, distribution/supply, healthcare, and light manufacturing. The Firm prefers control investments, but will selectively review minority situations. Target companies are typically profitable with at least $2 million in EBITDA. Source Capital will not invest in venture deals, high tech, or real estate. Source Capital was formed in 2002 and is based in Atlanta, Georgia.


Deal Context for Buyer #
Overall 44 of 44
Sector: Business Services 5 of 5
Type: Buyout (LBO, MBO, MBI) 21 of 21
State: North Carolina 3 of 3
Country: United States 44 of 44
Year: 2025 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2025-03-13 Pilot Painting

Orange, California, United States

Pilot Painting offers painting, wood replacement, and other reconstruction projects to HOAs and multi-family communities. Pilot Painting was formed in 1974 and is based in Orange, California.

Buy -
DESCRIPTION

Canopy Capital Partners is a private equity firm focused on lower middle-market companies generating sales of $5 to $100 million and EBITDA between $1 and $10 million. Canopy Capital Partners will consider a variety of transaction situations, including management buyouts, growth financings, and recapitalizations. Sectors of interest include business services, construction, distribution, machinery, manufacturing, and transportation. Canopy Capital Partners was formed in 2015 and is based in Tampa, Florida.


Deal Context for Buyer #
Overall 10 of 10
Sector: Business Services 2 of 2
Type: Buyout (LBO, MBO, MBI) 3 of 3
State: North Carolina 2 of 2
Country: United States 10 of 10
Year: 2025 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-07-12 Pet Palette

Sykesville, Maryland, United States

Pet Palette Distribution is a national wholesale distributor of high-quality pet products for the independent pet retailer community. The business focuses on distributing high-quality pet products, including toys, leashes, bowls, apparel, shampoo, treats, and health and wellness offerings. Pet Palette Distribution is based in Sykesville, Maryland.

Buy -