L Squared Capital Partners has completed the acquisition of Oracle Elevator, a provider of elevator maintenance, repair, and modernization services. Longview Asset Management co-invested alongside L Squared on this transaction. The seller of Oracle Elevator is Incline Equity Partners which acquired the company in June 2010.
Oracle Elevator is a one of the larger, independent, and non-union providers of elevator maintenance, repair, and modernization services across all major brands of equipment. The company was founded in 2004 and currently operates 22 branch locations across 13 states. The company is led by President and CEO Paul Belliveau and is headquartered about 2 hours north of New York City in Dover Plains, NY (www.oracleelevator.com).
“Oracle is pleased to partner with the L Squared team to drive the next phase of Oracle’s growth as the leading independent alternative to the Big Four elevator manufacturers,” said Mr. Belliveau. “L Squared’s long-term investment horizon will allow us to make further investments in our people and continue growing our geographic footprint while providing the highest level of service to our customers.” The top four elevator manufacturers that control two-thirds of the global market are Otis, part of United Technologies; Kone (Finland); ThyssenKrupp (Germany); and Schindler (Switzerland).
Since its founding, Oracle has completed 18 acquisitions of independent elevator companies and L Squared will provide capital to continue this acquisition strategy. “We have been extremely impressed by Oracle’s track record of growth and commitment to high quality customer service and safety,” said Sean Barrette, Partner of L Squared. “Our family office capital base and long-term investment horizon is well suited to support Oracle’s geographic expansion, investment in its people and technical expertise, and pursuit of accretive acquisitions.”
L Squared invests from $15 million to $75 million of equity in technology-enabled services, industrial technology, and education companies. Targeted investments will have revenue of $10 million to $100 million and EBITDA of $3 million to $20 million. Oracle represents the sixth platform investment that L Squared has acquired over the past last three years. The firm was founded in 2014 and has offices in Newport Beach and Chicago (www.lsquaredcap.com).
Twin Brook Capital Partners, NXT Capital and Varagon Capital Partners provided financing for this transaction. BB&T Capital Markets was the financial advisor to Oracle.
Incline Equity Partners, the seller of Oracle, invests from $15 million to $30 million in support of recapitalizations, buyouts and corporate divestitures of lower middle market companies that have EBITDAs greater than $5 million and enterprise values between $30 million and $150 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business and industrial services. Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).
© 2017 Private Equity Professional | May 16, 2017
