M&A Deal Summary

Stellex Capital Management Acquires P3 Services

On January 26, 2022, private equity firm Stellex Capital Management acquired construction company P3 Services from Midwest Mezzanine Funds, True West Capital Partners, Ironwood Capital and Crescendo Capital Partners

Acquisition Highlights
  • This is Stellex Capital Management’s 1st transaction in the Construction sector.
  • This is Stellex Capital Management’s 15th transaction in the United States.
  • This is Stellex Capital Management’s 1st transaction in Washington.

M&A Deal Summary

Date 2022-01-26
Target P3 Services
Sector Construction
Buyer(s) Stellex Capital Management
Sellers(s) Midwest Mezzanine Funds
True West Capital Partners
Ironwood Capital
Crescendo Capital Partners
Deal Type Secondary Buyout

Target

P3 Services

Auburn, Washington, United States
P3 Services is a provider of plumbing installation and maintenance and repair services to the multi-family, light commercial, and single-family end markets with operations in Austin, Charlotte, Dallas, Houston, San Antonio, and Seattle. P3 Services was founded in 1985 and is based in Auburn, Washington.

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Buyer(S) 1

Buyer
DESCRIPTION

Stellex Capital Management is a private equity firm focused on acquiring middle-market companies throughout North America and Europe. Stellex looks to invest $25 to $150 million in transactions valued up to $500 million. Sectors of interest include manufacturing, industrial, business services, aerospace, defense, government services, automotive, consumer products, distribution, and transportation. Prospective transaction situations include buyouts, turnarounds, recapitalizations, corporate divestitures, consolidations, and secondary purchases. Stellex Capital Management was formed in 2014 and is based in New York City.


DEAL STATS #
Overall 18 of 28
Sector (Construction) 1 of 1
Type (Secondary Buyout) 6 of 9
State (Washington) 1 of 2
Country (United States) 15 of 22
Year (2022) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-11 International Marine & Industrial Applicators

Daphne, Alabama, United States

International Marine & Industrial Applicators is a provider of critical vessel preservation services to the U.S. Navy ("USN") and commercial maintenance, repair, and overhaul ("MRO") and new construction markets. International Marine & Industrial Applicators was founded in 1985 and is based in Daphne, Alabama.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-03-21 RTC Aerospace

Chatsworth, California, United States

RTC Aerospace is a provider of precision manufacturing of hydraulic landing and other precision components to aerospace and defense customers. RTC Aerospace was formed in 1957 and is based in Chatsworth, California.

Buy -

Seller(S) 4

SELLER

Midwest Mezzanine Funds

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1992
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Midwest Mezzanine Funds (MMF) is a provider of junior capital to lower middle-market, US and Canadian companies. MMF looks to invest $4 to $15 million to support buyouts, acquisition financings, recapitalizations, and growth capital needs. Prospective companies generally have consistent profits ($3 million of EBITDA), low capital intensity, and sustainable competitive advantages. Broad areas of interest include manufacturing, value-added distribution, and services. MMF will not invest in high technology, energy, or real estate. Midwest Mezzanine was formed in 1992 and has offices in Chicago and Monroe, Michigan.


DEAL STATS #
Overall 50 of 56
Sector (Construction) 1 of 1
Type (Secondary Buyout) 23 of 25
State (Washington) 1 of 1
Country (United States) 49 of 55
Year (2022) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-12 RP Lighting + Fans

Albuquerque, New Mexico, United States

RP Lighting + Fans is a distributor of ceiling fans, electrical wiring devices, and lighting fixtures used predominantly in multi-family housing complexes and other related end markets. Royal Pacific was founded in 1990 and is based in Albuquerque, New Mexico.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-16 Imagine Technology Group

Chandler, Arizona, United States

Imagine Technology Group provides document management solutions, workflow improvements, Multi-function devices, VoIP phone systems, digital signage, managed network services, and IT Solutions. Imagine Technology Group was founded in 2011 and is based in Chandler, Arizona.

Buy -
DESCRIPTION

True West Capital Partners is a private investment firm focused on lower middle-market company investments in the Western US. The Firm looks to commit $5 to $25 million into profitable businesses to support acquisitions, growth initiatives, buyouts, recapitalizations, and refinancings. True West does not have any sector preferences, but does avoid real estate, startups and project financings. True West Capital Partners was formed in 2009 and is headquartered in Los Angeles, California.


DEAL STATS #
Overall 3 of 6
Sector (Construction) 1 of 1
Type (Secondary Buyout) 2 of 2
State (Washington) 1 of 1
Country (United States) 3 of 6
Year (2022) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-01 Lief Labs

Valencia, California, United States

Lief Labs is a premier formulation and product development innovator and manufacturer of dietary supplements. The Company's in-house Product Development and R&D team creates the best tasting and most cutting-edge formulations of supplements. Lief also houses over 220,000 sq ft of new and fully renovated, fullservice, state-of-the-art, Current Good Manufacturing Practice (cGMP) manufacturing facility, which includes an in-house analytical testing lab and a microbiology lab, and offers custom solutions for a multitude of supplement categories. The Company collaborates with entrepreneurial firms to help them build premier brands. Lief’s turnkey solutions allow it to engage in seamless partnerships that help brands with scalability and sustainable growth. Lief Labs was founded in 2008 and is based in Valencia, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-24 Contract Sweeping Services

Milpitas, California, United States

Contract Sweeping Services is a municipal street sweeping service provider to California's municipalities/cities and waste management companies. Contract Sweeping Services is based in Milpitas, California.

Sell -
SELLER

Ironwood Capital

Avon, Connecticut, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1986
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Ironwood Capital is a private investment firm that makes equity and subordinated debt investments in lower middle-market companies. Investment proceeds are generally used to support leveraged buyouts, growth financings, and recapitalizations. Investments typically range from $10 to $40 million in companies generating $20 to $250 million in annual sales. Target sectors include healthcare products/services, value-added manufacturing, business services, consumer products, specialty distribution, and education. Ironwood prefers opportunities East of the Mississippi, but will selectively consider investments in the Western US. The Firm's investment horizon is three to five years. Ironwood Capital was formed in 2002 and is based in Avon, Connecticut.


DEAL STATS #
Overall 46 of 53
Sector (Construction) 2 of 2
Type (Secondary Buyout) 11 of 12
State (Washington) 1 of 1
Country (United States) 46 of 53
Year (2022) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-11 Page Publishing Consortium

Conneaut Lake, Pennsylvania, United States

Page Publishing Consortium is a group of more than ten brands that provide solutions to transform authors' books from a simple manuscript to a fully-produced and published e-book, print, and audiobook set of works available across all major platforms such as Amazon, Apple, and Barnes & Noble. Page concentrates its business on providing excellent turnkey service to over 10,000 authors per year, rather than relying on the success of a few titles as with more traditional publishing houses. Page Publishing Consortium was founded in 2012 and is based in Conneaut Lake, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-08 The Facilities Group

Tampa, Florida, United States

The Facilities Group is a portfolio of commercial facilities maintenance companies focused on providing quality services and valuable client relationships. Together, The Facilities Group companies service more than 18,000 locations across a variety of industries including healthcare, education, logistics, finance, commercial, and industrial facilities. The Facilities Group is based in Tampa, Florida.

Sell -
SELLER

Crescendo Capital Partners

Centennial, Colorado, United States

Investor Investor


Category Private Equity Firm
PE ASSETS 600M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Crescendo Capital Partners is a small private equity group that invests in growing, lower middle market businesses operating in or around Colorado. Crescendo looks for businesses valued less than $50 million, and with strong management, perhaps with an owner operator looking to take the company to the 'next level'. Crescendo also likes businesses operating in fragmented markets. Sectors of interest include software, services, hardware, electronics, basic manufacturing, and medical products. Crescendo Capital is based in Centennial, Colorado.


DEAL STATS #
Overall 5 of 5
Sector (Construction) 1 of 1
Type (Secondary Buyout) 2 of 2
State (Washington) 1 of 1
Country (United States) 4 of 4
Year (2022) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-16 Automated Gate Services

Corona, California, United States

Automated Gate Services provides automated gate and security solutions, including emergency repair, planned maintenance, design, fabrication, access control and installation to residential and commercial customers across Southern California. Automated Gate Services was founded in 1998 and is based in Inglewood, California.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-11 AGS

Englewood, Colorado, United States

AGS provides building services for both new construction and aging properties, with one-stop service solutions for all repair, reconstruction, and renovation needs throughout a property’s life cycle. AGS is based in Englewood, Colorado.

Buy -