Soundcore Capital Partners has acquired Sweeping Corporation of America, one of the largest independent power sweeping companies in the United States. As part of this transaction, Soundcore also acquired SCA’s sister company, Sani-Tech JetVac.
Sweeping Corporation of America provides street, parking lot and construction site sweeping, catch basin cleaning and several ancillary services including pavement maintenance and snow management. Customers include state, municipal, commercial, industrial and residential customers throughout the Southeast region of the US. The company services over 25,000 miles of roadways and parking lots each month across the states of Tennessee, Alabama, Georgia, North Carolina, Kentucky, Arkansas, Mississippi, and Louisiana. SCA was founded in 1988 by Tom Rice and is headquartered in Nashville (www.sweepingcorp.com).
Sani-Tech JetVac Services provides storm and wastewater services, including pipeline clearing, cleaning, vacuuming and video inspection, to customer throughout the Southeast region of the US. The company, founded in 2000, has 25 employees and is also based in Nashville (www.sani-techservices.com).
“After defining the street sweeping space for our third platform investment, we developed a comprehensive thesis supported by proprietary industry knowledge we gained first-hand through our firm’s in-house cold calling efforts,” said Feliks Zarotsky, Managing Partner of Soundcore. “We spoke with many great companies before selecting Sweeping Corporation as our third platform and Sani-Tech as its first add-on.”
Soundcore Capital Partners invests from $2 million to $60 million of control equity in lower middle market companies that are headquartered in the US or Canada. Typical targets will have from $1 million to $10 million in EBITDA. Sectors of interest include services, specialty distribution, and valued added manufacturing. Soundcore was founded in 2015 and is based in New York (www.soundcorecap.com).
“We are extremely eager to join forces with both Sweeping Corp and Sani-Tech to build upon the strong success they have achieved to-date under the management of Tom Rice and his team,” said Jarrett Turner, Managing Partner of Soundcore. “The partnership solidifies our approach of pursuing healthy, need-to-have buy-and-build investments in highly-fragmented, niche markets. With the unlimited potential to expand into hundreds of smaller, local territories, our goal is to nurture and grow the company, through multiple add-on acquisitions.”
The buy of Sweeping Corp is Soundcore’s third platform investment and the buy of Sani-Tech is the eleventh add-on acquisition since the firm’s inception in March 2015. In September 2016 the firm acquired PumpMan, a Los Angeles-based provider of pump system maintenance, repair and new system installation services (www.pumpman.com); and in November 2015 the firm acquired Alloy Wheel Repair Specialists, a provider of on-site repair services of cosmetic damage to alloy wheel cores, off-site remanufacturing of structurally damaged wheels, and OEM replacement parts through the company’s retail network. Alloy Wheel is headquartered in Norcross, GA (www.awrswheelrepair.com).
© 2017 Private Equity Professional | March 3, 2017
