Bessemer’s Buy Backed by Tree Line

Bessemer’s Buy Backed by Tree Line

Tree Line Capital Partners and Bridge Bank - part of the Western Alliance banking group - provided debt financing

Legacy Restoration provides exterior restoration of roofing, windows, siding, and gutters to single-family homes and multi-family properties

SOURCE: Legacy Restoration

Bessemer Investors has acquired Legacy Restoration in partnership with the company’s founder and senior management team.

Legacy Restoration is a provider of exterior restoration and remodeling services, including roofing, windows, siding, and gutters to single-family homes and multi-family properties. The company was founded in 2011 by CEO Scott Mullins and is headquartered near Minneapolis in Plymouth, Minnesota with additional offices in Lombard, Illinois and Centennial, Colorado.

Proceeds from this transaction were used by Legacy Restoration to provide liquidity to certain selling shareholders and to provide capital to support the company’s future organic and acquisitive growth. Mr. Mullins and other members of Legacy’s senior management team will continue leading the company in partnership with Bessemer.

“We are pleased to have established this partnership with Bessemer and their team,” said Mr. Mullins. “Legacy Restoration has achieved remarkable growth in its 10-year history, and we feel confident the Bessemer/Legacy partnership will enable us to continue this trend.”

“We are excited to partner with Legacy and to continue building on their track record of growth,” said Andrew Mendelsohn, a principal at Bessemer. “Led by an experienced management team, Legacy is an industry leader with a reputation for high-quality service and conducting business with integrity. We see numerous growth avenues for Legacy, whether through geographic and end-market expansion, or through strategic M&A opportunities, and look forward to supporting Scott and the management team through the next phase of growth.”

Capstone Headwaters was the capital markets advisor on this transaction with Tree Line Capital Partners and Bridge Bank (part of the Western Alliance banking group) providing debt financing.

Tree Line provides first lien term loans, unitranche term loans, and equity co-investments to North America-based lower middle market companies that have EBITDA from $3 million to $30 million and transaction sizes up to $150 million. The Tree Line team has extensive direct lending experience across multiple economic cycles and has generated significant repeat investment opportunities from private equity sponsors. Tree Line is headquartered in San Francisco with additional offices in New York City, Los Angeles, and Austin.

New York City-based Bessemer Investors invests from $50 million to $150 million of equity in companies that have from $10 million to $50 million of EBITDA and enterprise values from $75 million to $500 million. Sectors of interest include industrials, business services, and consumer products and services.

Bessemer was formed in 2018 and is an investment vehicle of Bessemer Securities, a multi-family office led by the Phipps family whose wealth originated from the partnership between Henry Phipps and Andrew Carnegie, and the sale of Carnegie Steel to JP Morgan in 1901. Bessemer Securities is named after the Bessemer steel-making process – developed by Sir Henry Bessemer in 1855 and used by Carnegie Steel – that allowed for the low cost and efficient production of steel from iron.

Chicago-based Waller Helms was the financial advisor to Legacy on this transaction and Piper Sandler was the financial advisor to Bessemer.

© 2021 Private Equity Professional | August 12, 2021

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