L2 Capital Partners has sold LSC Environmental Products to Ancor Capital Partners.
LSC is a manufacturer of spray-applied coatings that are used to control and prevent the environmental challenges of erosion, odor, land reclamation, waste cover, seeding, and dust. The company also produces a line of mixers and spray applicators that can be used with its coating products.
Company-owned brand names include, among others, Posi-Shell, Posi-Cube, Odor-Shell, Solar-Spark, EarthGuard, and AquaGuard. LSC, led by CEO Joseph Donze, is headquartered in Apalachin, NY with an additional facility in Bakersfield, CA (www.lscenv.com) (www.terranovo.com).
L2 acquired LSC Environmental (then Landfill Service Corporation) in March 2011. During L2’s ownership term the company underwent significant corporate management changes; acquired Terra Novo, a Bakersfield, CA-based provider of spray-applied environmental coatings under the EarthGuard brand, in March 2016; and developed multiple new products.
“This successful exit exemplifies how L2 works with portfolio companies. Over the course of our investment, L2 recruited a new CEO and CFO, worked with management to craft a broader go-to-market strategy, and completed a synergistic add-on acquisition,” said Bob Levine, a managing partner of L2. “All this was achieved while ensuring that the team and the company had the resources and investment required. We always knew LSC’s products delivered best in class performance; the LSC team built upon that foundation to lead the company to its current level. We are confident in their continued success.”
L2 Capital Partners is a lower middle market private equity family office that makes control and minority investments in companies that have revenues from $10 million to $75 million and EBITDA from $2 million to $8 million. Sectors of interest include technology-enabled services; business services; e-commerce/direct marketing; consumer products; manufacturing; and environmental products. L2 Capital was founded by Bob Levine in 2011 and is headquartered in the Philadelphia suburb of Devon, PA (www.L2Capital.net).
Ancor Capital Partners invests in companies with enterprise values of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include health care, consumer staples, industrial manufacturing, automotive and emerging industries. The firm is headquartered in the Dallas suburb of Southlake, TX (www.ancorcapital.com).
West Conshohocken, PA-based investment bank Delancey Street Partners was the financial advisor to L2 on this transaction.
© 2019 Private Equity Professional | June 11, 2019
