Apex Service Partners (ASP) has been launched by Alpine Investors as a new platform to consolidate the firm’s investments in the home services sector.
In June 2019, Alpine acquired Best Home Services, a Florida-based HVAC, plumbing and electrical service and repair business, in partnership with the company’s co-CEOs and brothers, Chadd and Keegan Hodges.
Best operates in Southwest Florida with its headquarters in Naples and two additional offices in Sarasota and Fort Myers. The company was founded in 1980 by Perry and Marilyn Hodges (and purchased by their sons in 2009) and has approximately 300 full-time employees (www.getbest.com).
Earlier this week, Alpine Investors announced the acquisition of Frank Gay Services, a plumbing, HVAC, electrical and mechanical services company. The company was founded in 1981 and is headquartered in Orlando with a satellite office in Tampa. Frank Gay Services has 140 service vehicles on the road and 175 full-time employees (www.frankgayservices.com).
Together, Best Home Services and Frank Gay will now serve as the foundation of Tampa-headquartered Apex Service Partners. Apex is led by CEO AJ Brown, an Alpine CEO-in-residence, who was previously the CFO of construction software company Avitru, an Alpine portfolio company that was sold in December 2018. Joining Mr. Brown is Will Matson as CFO and head of mergers and acquisitions.
“Home and commercial services is a fragmented market where Apex can further strengthen already great companies to accelerate growth with our resources and support,” said Mr. Brown. “As part of the Apex partnership, these businesses will be able to leverage the expertise of some of the best operators in the country as well as have access to capital to build new facilities, invest in their teams, provide the best possible equipment and training for technicians, and ultimately, enhance their customers’ experience and employees’ career opportunities.”
Alpine plans to invest at least $100 million of equity capital in founder-owned companies over the next five years to build Apex into a national leader. The firm used a similar build-up strategy successfully in what later became known as the Wrench Group, an HVAC and plumbing services platform serving the Atlanta, Dallas, Houston and Phoenix markets, which grew to over $150 million in revenues. Alpine sold Wrench Group to Investcorp in 2016.
“Alpine has extensive experience in the HVAC, plumbing, and electrical services space and we are excited to apply our expertise to quickly grow Apex into a market leader,” said Daniel Cohen, a vice president at Alpine. “Best and Frank Gay have exceptional reputations in the industry. Bringing them together makes Apex an attractive home for other founders who are looking for a growth partner for their businesses.”
Alpine invests in US or Canadian based software and services companies that have from $1 million to $30 million of EBITDA. The firm was founded in 2001 and is based in San Francisco (www.alpine-investors.com).
Orchard MB, an investment bank based in Winter Park, FL, was the financial advisor to Frank Gay Services on this transaction.
© 2019 Private Equity Professional | July 30, 2019