LP First Capital and Trive Capital have formed Cascade Services, a new platform company in the home services industry.
Cascade Services is a provider of tri-trade services – HVAC, plumbing, and electrical – to the residential market. The formation of Cascade was made in tandem with the acquisitions of four residential HVAC and electrical contractors in Florida, including Gainesville-based Mid-Florida Heating & Air, West Palm Beach-based Aztil Air Conditioning, Melbourne-based Extreme Air & Electric, and Boca Raton-based Air Boca.
Cascade is led by CEO Ty Johnson and is headquartered in Boca Raton, Florida. Prior to taking the CEO position at Cascade, Mr. Johnson was an operating partner at Trive from 2020 to 2022. Before joining Trive, he was the CEO of Select Interior Concepts, a publicly traded provider of interior surface products for residential and commercial applications. Select Interior Concepts was formed in 2017 through the merger of two Trive portfolio companies – Architectural Surfaces Group and Residential Design Services. At the time of the merger, Mr. Johnson was the CEO of Residential Design Services, a Los Angeles-based provider of outsourced interior design centers and installation services (flooring, countertops, wall tiles, window treatments) for residential and commercial builders in the Western United States.
“Cascade Services is fully committed to achieving growth at our underlying family of residential services brands,” said Mr. Johnson. “Accordingly, we are equipped to support contractors with operations, recruiting, marketing, accounting, and procurement, among other mission-critical operational tasks.”
“Cascade Services is quickly becoming the acquirer of choice for residential HVAC, plumbing, and electrical contractors seeking a transition of ownership,” said Thomas Ince, a managing director at LP First. “We are well positioned to support business owners who desire a capital partner to accelerate growth, as well as those owners who desire a full exit.”
“At Cascade Services, we appreciate the legacy and reputation that business owners have built over the years at their business, and we desire to preserve that legacy. As such, in most cases Cascade will retain the business name and brand post-transaction, providing continuity for employees, customers and business partners alike,” said Logan Lowery, a managing director at LP First.
Austin-based LP First invests from $10 million to $20 million in companies that have from $3 million to $10 million in EBITDA. The firm specializes in investing in fragmented industries with a specific focus on the commercial, consumer, education, and healthcare services sectors.
In September 2022, LP First partnered with Miami-based Trivest Partners to form Austin, Texas-based, OpenRoad Collision as a platform within collision repair industry. Simultaneously, OpenRoad acquired four collision repair companies including New Mexico-based Car Crafters, and Texas-based Drury and Moss Body Shop, 1st Choice Collision, and Helotes Collision.
Trive invests from $10 million to $250 million of debt or equity in North America-headquartered companies with revenues of $40 million to $1.5 billion. Trive is industry-agnostic but has specific experience in aerospace and defense, automotive, building products, business services, chemicals, and consumer goods.
In April 2022, Trive held final closings of two new funds, Trive Capital Fund IV LP and Structured Capital Fund I LP, with an aggregate $1.95 billion of capital commitments. Trive was founded in 2012 by Managing Partner Conner Searcy and Partner Chris Zugaro and is headquartered in Dallas.
According to LP First and Trive Capital, Cascade is actively seeking add-on opportunities in the residential HVAC, plumbing and electrical sector.
© 2023 Private Equity Professional | January 18, 2023
