Milestone Acquires RedZone Robotics
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Milestone Acquires RedZone Robotics

Milestone Partners has acquired RedZone Robotics from a group of private shareholders, including ABS Capital Partners.

RedZone Robotics uses proprietary robots that utilize laser, sonar, CCTV and gas sensors to provide inspection, data collection, and asset management services primarily for wastewater pipeline systems. The company also provides related data processing, hosting, reporting and asset management software.

RedZone Robotics, led by CEO Dan Yingst, was founded in 1987 and is headquartered in Pittsburgh (www.redzone.com).

“Many municipal wastewater collection systems are in dire need of reinvestment. We believe RedZone’s suite of technologies is well-suited to help clients understand where the needs are most critical and how best to deploy precious budget dollars. RedZone has also assembled an excellent team and we are eager to support management during the next phase of RedZone’s exciting growth,” said John Nowaczyk, Partner at Milestone.

Milestone invests from $5 million to $40 million in leveraged buyouts and recapitalizations of lower middle market businesses that have revenues of $15 million to $150 million, EBITDA of $3 million to $20 million, and valuations of $15 million to $150 million. The firm prefers niche-market leaders that provide high-margin products or services. Milestone was founded in 1995 and is located in Radnor, PA (www.milestonepartners.com).

ABS Capital Partners makes control and non-control growth equity investments of $10 million to $25 million in companies in the business & tech-enabled services, and healthcare sectors that have at least $10 million of revenue. ABS has offices in Baltimore and San Francisco (www.abscapital.com).

The buy of RedZone was funded through Milestone’s fourth fund which closed in March 2013 with total commitments of $300 million.

Monroe Capital (www.monroecap.com) was the sole lead arranger and administrative agent on a $21 million senior credit facility to support the acquisition of RedZone.

Capstone Headwaters (www.capstoneheadwaters.com) was the investment banking advisor to RedZone.

© 2018 Private Equity Professional | June 12, 2018

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