Arcapita has acquired a controlling interest in MC Sign Company from Caltius Capital Management for a total transaction value in excess of $100 million. Caltius acquired MC Sign from Sverica Capital Management in September 2015.
MC Sign provides signage, lighting and maintenance services to over 275 customers that are active in the retail, banking, hospitality, quick service restaurant and petroleum/C-store segments throughout the US and Canada. The company’s services include new installations, rebrandings, and refurbishments, as well as on-demand sign maintenance and emergency repairs.
The company has also steadily grown its lighting services business which completes interior and exterior lighting installations and is currently capitalizing on the high-growth LED retrofit/conversion market. MC Sign processes over 40,000 work orders per year through over 5,000 field service partners, and has 225 employees. The company was founded in 1953 and is headquartered near Cleveland in Mentor, OH (www.mcsign.com).
“MC Sign acts as a comprehensive one-stop-shop for customers, eliminating the need to manage multiple relationships with local vendors across diverse geographies. This is especially beneficial for companies with a national or regional footprint,” said Martin Tan, Arcapita’s Chief Investment Officer. “We believe the company has significant potential to grow organically and through acquiring smaller regional service providers. Given the repeat nature of customer demand, MC Sign also benefits from a sizable and growing recurring revenue base.”
“MC Sign is led by a very experienced team of professionals who have grown the business considerably over the past few years, and we believe the company is well positioned to acquire market share in a highly fragmented industry that is dominated by locally-focused, sub-scale service providers,” said Atif Abdulmalik, Arcapita’s Chief Executive Officer. “Over 75% of MC Sign’s customers are blue-chip companies with a national presence and, attesting to the company’s value proposition, MC Sign has averaged an industry-leading customer retention rate of 99% since 2012.”
Arcapita is a private equity firm specializing in growth capital and buyout investments in the consumer, healthcare, energy, business services, industrial, technology, food & beverage, transportation & logistics, and manufacturing sectors. The firm invests between $50 and $200 million in companies with total transaction values between $50 and $300 million. Arcapita was founded in 1997 and is based in Atlanta with additional offices in Bahrain, London, and Singapore (www.arcapita.com).
© 2018 Private Equity Professional | January 8, 2018
