Branford Castle Partners, has acquired Surface Preparation Technologies, a provider of rumble strips and related roadway safety services.
Surface Preparation Technologies (SPT) has installed more than 150,000 miles of rumble strips across 49 states. The company designs and manufactures its own fleet of rumble-
strip machines, or “mills” which it believes run significantly faster and are more durable than competitors’ machines. The company’s mills can achieve speeds of up to 360 cuts per minute, or over 20 miles of asphalt rumble strips in a single eight hour shift. This is, according to the company, four times faster than its closest competitor. Faster cut times lead to less time lost for traffic control, more efficient road clean up, and can lead to early completion incentives. SPT was founded in 1988 and is led by CEO Steve Burke. The company is based in Mechanicsburg, PA (www.rumblestrips.com).
“Rumble strips are vital highway and roadway safety features that alert inattentive drivers of potential danger, and are a proven and cost-efficient measure to keep travelers safer by reducing the risks of crossover and run-off traffic accidents,” said Mr. Burke.
“SPT has established itself as the national leader in the rumble-strip market, with a reputation among its customers for outstanding service and reliability,” said Eric Korsten, Managing Director. “We are especially excited to work on this investment with Abacus Finance Group, which is providing senior debt financing, and Brookside Mezzanine Partners, which is providing mezzanine debt financing. Of particular note, both of our lender partners have also made equity co-investments in the transaction.”
Branford Castle invests in companies that have enterprise values of up to $75 million and also have from $1.5 million to $15 million of EBITDA. Sectors of interest include consumer goods and services; industrial and manufacturing; value-added commercial distribution; business services; and marine products and services. Between its founding in 1986 to 2016, Branford Castle operated as a family office. In October 2016 the firm held a final close of its first fund that was open to outside investors. The buy of SPT is the second platform investment for this fund, following the July 2016 acquisition of Earthlite Massage Tables – a maker of spa, massage and other wellness equipment.
“With this second deal, we are moving efficiently to deploy our investors’ capital, and we are working hard to close additional acquisitions in the near future,” said John Castle, a Managing Partner of Branford Castle. “As was the case with Earthlite, SPT’s management team invested in the transaction alongside Branford Castle and will continue to lead the company.”
Branford Castle is headquartered in New York (www.branfordcastle.com).
© 2017 Private Equity Professional | February 28, 2017
