SIB Holdings, a portfolio company of O2 Investment Partners, has acquired Vector97 (Vector).
SIB is a provider of fixed cost reduction services providing invoice analysis, vendor negotiation and management, and cost monitoring for customers across a variety of expense categories including telecom, utilities, waste management, shipping, and logistics. Customers of SIB include Fortune 500 companies, restaurant and hotel groups, regional banks, senior living groups, healthcare systems, grocery stores, and retail chains.
Since its founding in 2008, SIB has reviewed more than $3 billion in spend across 70,000 locations nationwide and found savings for more than 98% of its clients. Charleston, South Carolina-headquartered SIB earns contingent performance fees based on the cost savings that it discovers for its clients.
Like SIB, Vector provides cost reduction services with a specialization in waste and recycling expenses. Vector’s services include managing all aspects of a customer’s waste and recycling programs, including data management, contractual terms, administration management, invoice auditing, sustainability strategies, and waste reduction.
Vector, led by CEO and founder Shelly Binnette, President Marc Savas, and EVP Jack Johnson, is headquartered near Los Angeles in Sherman Oaks, California.
“Our primary focus has always been serving our clients and arming them with the tools to put them back in control of their waste spend,” said Mr. Savas. “I’m extremely excited to say that we’ll not only continue to do that but with our new SIB partnership, we’ll enable our clients to take control of their data, manage their vendors and reduce their fixed costs.”
The buy of Vector is the fifth add-on acquisition completed by SIB since March 2020. The four earlier add-on acquisitions made by SIB include California-based Shipware (December 2021); Ohio-based Fox Consulting Group (July 2021); Sage Management (June 2021); and New York-based Cost Control Associates (October 2020);
“Our new partnership with Vector is game-changing for the SIB platform,” said Kevin Flounders, the CEO of SIB. “The company serves the multi-family residential, commercial, medical, and industrial end markets, with a growing customer base that relies heavily on Vector’s extensive knowledge and expertise. As with previous investments, we are well positioned to expand our client relationships by optimizing spend across a broader range of categories. We are excited to partner with the extremely talented Vector team and see continued tech-enablement and growth ahead of us.”
“O2 is very excited to add Vector’s capabilities and expertise to the SIB platform,” said Pat Corden, a partner at O2. “There is great alignment between the management teams and the combined value proposition is compelling for our customers. We appreciate the Vector team’s confidence in SIB and O2, and we also extend our thanks to our financial partners Tree Line Capital Partners, Stellus Capital Management, Capital Southwest, and LBC Small Cap for their support in this investment.”
O2 makes control investments in companies with EBITDAs of more than $5 million located anywhere in the United States and Canada but with a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $15 million to $50 million. Industries of interest include manufacturing, niche distribution, select service and technology businesses. O2 is based in the Detroit suburb of Bloomfield Hills, Michigan.
© 2022 Private Equity Professional | July 29, 2022
