O2 Exits Mantis, Announces Promotions

O2 Exits Mantis, Announces Promotions

O2 acquired Mantis in May 2018 and completed and integrated four add-on acquisitions during its investment term

Mantis is a provider of software tools and data analytic services that are used to improve the energy efficiency of buildings

SOURCE: Pixabay

O2 Investment Partners has sold Mantis Innovation Group to Gemspring Capital.

Mantis is a provider of software tools and data analytic services that are used to improve the energy efficiency of buildings. The company’s services include energy procurement and demand management; solar, roofing, building envelope, and pavement assessment and maintenance; and LED lighting, HVAC/mechanical and building automation systems implementation.

Mantis is led by CEO Dan Marzuola and is headquartered in Houston with 17 locations across the United States.

O2 acquired Mantis (then EMEX (Energy Market Exchange)) in May 2018 and completed and integrated four add-on acquisitions which diversified the company’s service offerings, customer base, and geographic reach. The four add-on acquisitions included Massachusetts-based Fairbanks Energy Services (February 2021), Texas-based Crenshaw Consulting Group (July 2020), Colorado-based BLUEFIN (August 2019); Massachusetts-based Patriot Energy Group (June 2019). The company was rebranded as Mantis Innovation Group in June 2021.

“O2 has been a great partner in helping Mantis grow to the level we are at today,” said Mr. Marzuola. “From the first day of our partnership, they believed in our strategic vision and philosophy of growth. In particular, O2 Partner Joe Vallee was unwavering in his pursuit to assist Mantis in achieving success.”

“We are incredibly proud and thankful for all of the Mantis team’s hard work, dedication, and innovation made since 2018,” said Mr. Vallee. “Together, we created an industry leader with a truly differentiated service offering, supported by the company’s collaborative mentality and strong culture. We are grateful to have had the opportunity to partner with the Mantis team and believe they are in good hands with Gemspring to take the business to the next level.”

Gemspring invests in companies that have revenues up to $500 million and are active in the business services, distribution and logistics, financial and insurance services, healthcare services, industrial services, software and tech-enabled services, and specialty manufacturing sectors.

“We see building owners seeking to shift from reactive to preventative and predictive asset management, as well as a strong desire to reduce energy consumption,” said Don Gerne, a managing director at Gemspring. “Mantis’ broad suite of value-added services and tech-enabled solutions position the Company very well to support these building owners as the go-to provider of managed facility and energy services. We are delighted to partner with the Mantis team to build on their successes to date and accelerate the company’s growth.”

Westport, Connecticut-based Gemspring held a final closing of its debut fund in November 2016 with $350 million of capital and in March 2020 the firm closed its second fund with $750 million of capital.

Earlier this week, O2 announced the promotions of Luke Plumpton to managing partner, Joe Vallee to partner, Jimmy Frye to vice president, and Michael Cotant to vice president. These promotions follow a record-breaking year for O2, with the closing of ten acquisitions, four exits and the addition of three new members to its investment team.

“Joe, Jimmy and Mike’s expertise in assessing investment opportunities and partnering with our portfolio companies have enhanced O2’s established success in the lower-middle market private equity industry,” said Mr. Plumpton. “The past couple of years with COVID has been tricky at times but we’ve only become more focused and disciplined in our approach. Joe, Jimmy and Mike are excellent examples of O2’s focus on honoring the entrepreneur and embracing the O2 philosophy of partnering with family/founder-owned businesses in a constructive and unique way. We’re incredibly proud of them and look forward to their continued contributions to the firm as we expand our presence in the industry.”

O2 makes control investments in companies with enterprise values from $10 million to $100 million and EBITDA from $5 million to $15 million that are located anywhere in the US and Canada. Sectors of interest include business-to-business services, technology, and niche industrial companies.

In January 2021, O2 held a final closing of O2 Investment Partners Fund III LP with $270 million in capital commitments. O2 is based in the Detroit suburb of Bloomfield Hills and was founded in 2010.

Houlihan Lokey was the financial advisor to both O2 and Mantis on this transaction.

© 2022 Private Equity Professional | January 19, 2022

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