Soundcore Paving the Way

Soundcore Capital Partners has acquired its first platform for its third fund with the buy of ACI Asphalt & Concrete (ACI).

ACI is a provider of asphalt and concrete installation, maintenance and repair services to commercial parking lot and multi-family homeowner associations. The company, led by founder and CEO Jim Bebo and President Justin Pomerleau, is headquartered northwest of Minneapolis in Maple Grove, Minnesota.

As part of this transaction, Soundcore has formed Commercial Paving Holdings (CPH) as a new platform company in partnership with Mr. Bebo, a 30-year commercial paving industry veteran. CPH is now actively seeking additional acquisition targets as part of CPH’s super-regional consolidation strategy.

“We are thrilled to be partnering with such a well-regarded company and accomplished management team. We look forward to accelerating our platform creation investment mandate,” said Eric Korsten, a partner of Soundcore.

“We are excited to partner with Soundcore to further progress new geographic, especially in the Upper Midwest, and customer expansion and acquisitions,” said Mr. Bebo. “Soundcore’s origination team, led by Alex Bues, and its growth and performance improvement team, led by Jeff Long, will be particularly helpful in paving ACI’s organic and inorganic growth strategy.”

“We have big plans for the commercial paving space,” said Alex Bues, a partner of Soundcore. “Jim, Justin and the ACI team have built a great business and we look forward to executing on our M&A strategy with them.”

Soundcore specializes in North America-based buy-and-build investments in the lower middle market. Target companies typically have revenues up to $150 million and are active in business and outsourced services, industrial services, specialty manufacturing and value-added distribution sectors. The firm was founded in 2015 by Managing Partner Jarrett Turner and is headquartered in New York City.

“ACI fits all of Soundcore’s investment criteria, including demonstrating steady long-term organic growth. Having now acquired 73 companies across 10 platforms since inception, Soundcore’s buy-and-build and platform creation experience will help accelerate ACI’s growth through a combination of strategic add-on acquisitions and organic growth initiatives,” said Mr. Turner.

The formation of Commercial Paving Holdings and the acquisition of ACI is the first of ten total portfolio companies Soundcore is targeting for its third fund.

Northborne Partners was the financial advisor to ACI on this transaction.

© 2022 Private Equity Professional | August 4, 2022