Stellex Capital Management has acquired Peltram Plumbing from Crescendo Capital Partners.
Peltram Plumbing (P3) includes Washington-based Peltram Plumbing, Texas-based Power Plumbing, North Carolina-based Precision Plumbing and North Carolina-based E.R. Plumbing. Through these four subsidiary companies, P3 provides plumbing installation and maintenance services to the multi-family, light commercial and single-family real estate markets in Austin, Charlotte, Dallas, Houston, San Antonio and Seattle. P3 is headquartered south of Seattle in Auburn, Washington.
Crescendo acquired Peltram Plumbing, led by Karel Peltram, in July 2018 and added on to the platform with the acquisitions of Precision Plumbing, led by Justin Elliott, in November 2020; E.R. Plumbing led by Dave Parker in May 2021; and Power Plumbing, led byDick Pearsall in August 2021.
During Crescendo’s 3.5-year ownership period, the company grew revenue and EBITDA by approximately 7x. Crescendo’s investment in P3 is the third construction and renovation platform that has achieved a return of at least 5x its invested capital. The two earlier exited platforms were Westcoast Gates (sold in November 2021) and Empire Marketing (sold in February 2020).
With the acquisition closed, Stellex has hired Terry Young to lead P3 as its new chief executive officer. Mr. Young is a former senior vice president of publicly traded Comfort Systems USA, a provider of HVAC installation, maintenance, repair and replacement services across the United States. “Karel, Justin, Dave and Dick have built strong plumbing services businesses in their respective geographies,” said Mr. Young. “I look to preserve our companies’ local strengths but also facilitate improvement through technology adoption and the sharing of best operational, employee retention, and recruiting practices across our markets.”
Also joining P3 is Chad Lusco, a former senior vice president of facilities service provider Kellermeyer Bergensons Services (KBS) and the former chief operating officer of New Orleans-headquartered Empire Services, a provider of commercial facility maintenance services, which was acquired by KBS in December 2017.
New York City-based Stellex invests from $50 million to $150 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include manufacturing and service businesses within the automotive, aerospace, building products, consumer, defense, food, general industrial, and transportation industries.
“We are thrilled and humbled by this opportunity to provide capital and resources to support P3’s organic and M&A-focused expansion plan,” said Irina Krasik, a principal at Stellex. “Our goal is to materially expand maintenance and repair services capabilities in P3’s MSAs and consequently, seek to create more value for its customers and provide better opportunities for its employees.”
Austin and Chicago-based Crescendo Capital Partners invests in companies with revenues of $10 million to $100 million and EBITDA from $2 million to $10 million. Sectors of interest include healthcare services, construction, niche manufacturing, food and beverage, business services, and retail distribution.
DLA Piper served as legal advisor to Stellex while P3 was represented by Morrison Cohen and advised by Fifth Third Securities.
© 2022 Private Equity Professional | February 1, 2022
