PestCo Holdings, a Thompson Street Capital Partners portfolio company, has added three businesses to its pest control platform with the acquisitions of Pointe Pacific Northwest and sister companies Romney Pest Control and Phenom Pest Protection.
With the close of these transactions, PestCo has acquired ten companies since its formation in November 2021 in partnership with pest control industry executive Jay Keating. Mr. Keating has been active in the pest control sector for more than 25 years, beginning as a service technician and rising to become the vice president of operations and chief operating officer at Sears Pest Control in 1998. From 2001 to 2014, Mr. Keating was active in operations and sales for Orkin Pest Control.
Romney is a residential pest control provider operating throughout Texas, and its sister company, Phenom, provides similar residential pest control services throughout Maryland.
“Thompson Street is excited to partner with quality businesses offering significant scale and expertise in single-family residential pest control through its acquisition of Romney and Phenom while continuing to expand PestCo’s presence in Texas and Maryland,” said Jeff Aiello, a managing director at TSCP.
Pointe Pacific Northwest comprises Pointe Pest Control (Idaho) and Pointe Pest Control (Oregon) and provides residential and commercial pest control services throughout Idaho, Oregon, Washington, and Montana.
PestCo’s buy of Pointe Pacific Northwest comes one year after its acquisition of Pointe Illinois and Green Pest Services in February 2022. Pointe Pacific Northwest was founded by Jacob Borg, while Pointe Illinois was founded by his brother Jared Borg and his business partner Kyle Woodbury. Pointe Pacific Northwest and Pointe Illinois have historically operated separately with no affiliation beyond the relationship of their founders.
“We are excited to unite the two Pointe brands with our current ownership of Pointe Illinois in the Midwest while expanding PestCo’s footprint in a meaningful way into the Pacific Northwest,” added Mr. Aiello.
PestCo’s targets include residential and commercial pest control companies that exterminate mosquitoes, rodents, termites, and other insects. According to TSCP, pest control is a non-discretionary service for homeowners like plumbing and HVAC, but also a health and safety-driven concern for commercial applications such as hotels, restaurants, and other facilities. It is a recession-resistant service with a revenue model driven by recurring subscription revenue, with regular treatments and inspections necessary for ongoing pest protection.
The Potomac Company was the financial advisor to Romney Pest Control, Phenom Pest Protection, and Pointe Pacific Northwest. Paul Giannamore and Franco Villanueva-Meyer led the Potomac transaction team.
St. Louis-based TSCP makes equity investments of $50 million to $250 million in companies with EBITDA between $5 million and $50 million. Sectors of interest include healthcare and life science services, software and technology services, and business and consumer products and services.
© 2023 Private Equity Professional | February 14, 2023
