Branford Rumbles to Big Exit

Branford Castle has sold Surface Preparation Technologies, the nation’s largest provider of rumble strips and related roadway safety services, to Dominus Capital.

Surface Preparation Technologies (SPT) has installed more than 175,000 miles of rumble strips across 49 states. The company designs and manufactures its own fleet of rumble-strip machines, or “mills” which can achieve speeds of up to 360 cuts per minute or over 20 miles of asphalt rumble strips in a single eight-hour shift. Fast cut times lead to less time lost for traffic control, more efficient road clean up, and can lead to early completion incentives.

SPT, founded in 1988 and led by CEO Steve Burke, is headquartered in New Kingstown, Pennsylvania and has additional facilities in Tennessee, Kansas, Indiana, and Minnesota.

SPT was acquired by Branford Castle in February 2017 and during its ownership term, the company significantly expanded its geographic reach and fleet of proprietary equipment.  In June 2018, Branford Castle added-on to SPT with the buy of the rumble strip division of Rogers, MN-based Diamond Surface. This add-on expanded SPT’s scale and ability to service customers on a national basis.

“In less than three years, we have accomplished significant organic growth, coupled with a transformative strategic add-on acquisition, to take the business to the next level. This would not have been possible without our excellent management team partners and world-class independent board members,” said Eric Korsten, a senior managing director at Branford Castle.

New York-based Branford Castle invests in companies that have enterprise values of up to $100 million and EBITDAs of less than $15 million. Sectors of interest include consumer products and services, commercial distribution, industrials and specialty manufacturing, business services, and logistics. Between its founding in 1986 (by John K. Castle who also founded Castle Harlan) to 2016, Branford Castle operated as a family office. In October 2016, the firm held a final close of its first fund that was open to outside investors.

“We believe SPT has been a highly successful investment for Branford and its limited partners and we are delighted with the outcome,” said David Castle, managing partner of Branford Castle.

“In partnership with Branford, SPT has grown its operations to become a true national service provider,” said Mr. Burke. “We are very much looking forward to our next chapter with Dominus Capital, where we will leverage our capabilities and fleet for further growth both organically and through acquisitions in the US and beyond.”

New York-based Dominus Capital makes control equity investments in North American-based middle market companies that have at least $10 million of EBITDA. Sectors of interest include business services, consumer products and services, and light industrial. Dominus Capital was founded in 2008.

Stifel was the financial advisor to SPT on this transaction.

© 2019 Private Equity Professional | November 15, 2019

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