Carroll Capital has acquired Elevator Service, Inc. (ESI) in partnership with its management team from owner Nate McFadden.
ESI is a provider of maintenance and testing, repair, and elevator modernization services. The company’s service area includes the Michigan cities of Grand Rapids, Lansing, Ann Arbor, Kalamazoo and Battle Creek and ESI maintains and repairs elevators for many large public- and private-sector customers throughout Michigan. The company is headquartered in Grand Rapids with an additional office in Lansing (www.elevatorusa.com).
“ESI has built its strong reputation in the market by focusing on its customers and employees. Our field technicians are second to none and provide excellent customer service and strong technical expertise,” said Brett McCay, president of ESI. “We are excited to partner with Carroll Capital and believe their resources and business-building capabilities will enable us to accelerate the growth of the business while continuing to provide world-class service to the market.”
“We are excited to partner with the management team of ESI to continue its successful growth and build a regional leader in the elevator services sector,” said Brian Carroll, managing partner of Carroll Capital. “Elevator service is a highly attractive sector – a mission-critical service offering with regulatory and replacement cycle-driven demand and a highly recurring revenue business model. Within that sector, ESI is a best-in-class service provider that has strong market positioning and a loyal customer base in its local West Michigan market.”
“We were in the fortunate position to have multiple strong potential partners to choose from,” said Mr. McFadden, who acquired ESI in 2016. “Carroll Capital distinguished themselves from the beginning as the clear choice. This decision was driven by their stand-out business acumen and their demonstrated commitment to preserving the special culture that exists at ESI. The management team was unanimous in the decision to pursue this engagement with Carroll Capital.”
With the buy of ESI, Carroll Capital will now look to expand the company’s market share across Michigan and will also seek add-on acquisitions in other markets. “The management team of ESI shares this vision, and we feel confident in their ability to build and operate great elevator businesses, based upon their excellent track record at ESI and their previous roles at the major elevator OEMs,” said Lin He, a director of Carroll Capital.
Carroll Capital is a family office that invests in companies that are active in industrial services, health care services, niche manufacturing, advanced materials, and business services sectors. Typical targets will have enterprise values from $10 million to $100 million. The Greenwich, CT-based family office was founded in 2017 by Brian Carroll who previously spent over two decades at Kohlberg Kravis Roberts & Co. in New York and London, where he was a partner of the firm and served on its investment committee.
Maven Group, a consultant and financial advisor specializing in independent elevator services companies, led by Dominik Sachsenheimer, was the advisor to ESI and Mr. McFadden. “I engaged Maven Group twice: When I bought ESI in 2016 and when I sold the company to Carroll Capital,” said Mr. McFadden. “Dominik Sachsenheimer has tremendous command of the industry, knows the right potential qualified partners, and skillfully navigates the complexities of an acquisition.”
© 2019 Private Equity Professional | October 8, 2019