Warburg Sweeps Away SCA

Warburg Pincus has agreed to acquire Sweeping Corp of America from Soundcore Capital Partners.

Cleveland-headquartered Sweeping Corporation of America (SCA) provides street, parking lot and construction site sweeping, catch basin cleaning, pavement maintenance and snow management to state, municipal, commercial, industrial and construction customers.

The company, led by CEO Christopher Valerian, has more than 900 trucks and 1,000 employees in 35 locations throughout the eastern half of the United States.

Since acquiring SCA in February 2017, Soundcore completed 15 add-on acquisitions. Most recently, in August 2020, SCA acquired two South Carolina-based sweeping companies with the buys of Moncks Corner-based Sweeping South and Columbia-based Accusweep Services.

“As a leading growth investor, Warburg Pincus has a strong history in partnering and developing high quality, category-defining businesses. As the only provider with significant scale and a growing national presence, this partnership will enable us to further expand service capacity, fuel continued innovation in our complimentary services, and support key growth initiatives, with a focus on strategic acquisitions,” said Mr. Valerian. “We would also like to thank our partners at Soundcore Capital Partners for their valuable contributions and strategic insight over the years.”

“As a clear market leader with a proven acquisition platform within the street sweeping industry, SCA is a strong fit for our portfolio, and we believe there is a significant opportunity to retain and further grow its market-leading position,” said Stephanie Geveda, a managing director at Warburg Pincus. “We believe there is a significant opportunity for growth within the outsourced services sector, and when paired with Christopher and the management team’s impressive track record, the synergy will create an exciting partnership.”

Warburg Pincus has more than $56 billion in assets under management and has raised 19 private equity funds since its founding in 1966. The firm is headquartered in New York City with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.

Soundcore makes control investments in North American-based companies that have up to $350 million in revenue and net income of up to $15 million. Sectors of interest include fragmented industries with multiple acquisition roll-up opportunities with a specific focus on business services, specialty distribution, and valued-added manufacturing.

Soundcore – a name derived from the firm’s focus on “sound investments” and “core principles” – was founded in 2015 and is headquartered in New York City.

© 2020 Private Equity Professional | November 6, 2020

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