Fairway Lawns Switches Sponsors

Morgan Stanley Capital Partners (MSCP) has acquired Fairway Lawns, a provider of residential lawn care services, from Prairie Capital and Rising Point Capital.

Fairway’s services include weed control, fertilization, pest control and tree and shrub maintenance. The company, led by CEO Kyle DeMilt, operates through 16 southeast-based branches and is headquartered in Little Rock, Arkansas.

“We look to leverage MSCP’s approach to operational excellence, as well as their experience completing complementary acquisitions to accelerate the expansion of Fairway’s capabilities and geographic footprint in the coming years,” said Mr. DeMilt.

“For MSCP, Fairway represents an opportunity to execute on our core strategy of investing in focus sub-sectors where we have deep institutional knowledge and experience to drive value creation. We look forward to working together to advance the company’s market leadership position through organic growth and acquisitions,” said Adam Shaw, a managing director and head of business services at Morgan Stanley.

MSCP is the middle-market focused private equity business of Morgan Stanley Investment Management which in turn is part of Morgan Stanley, a financial services firm providing investment banking, securities, wealth management and investment management services. MSCP invests in North American-based companies that are active in the business services, consumer, healthcare and industrial markets.

MSCP’s investment in Fairway is its seventh platform through its $2.0 billion Fund VII, which closed in December 2021.

New York City-based Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $80 million. The firm targets eight industry sectors: aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrials.

Chicago-based Rising Point Capital invests up to $50 million of equity in a range of service businesses that have revenues of at least $10 million and EBITDA from $2 million to $20 million.

Carlyle Global Credit was the sole administrative agent, bookrunner and arranger on the financing to support MSCP’s buy of Fairway.

Harris Williams was the financial advisor to Fairway on this transaction.

© 2022 Private Equity Professional | June 7, 2022