Coalesce Completes Investment in Examinetics

Coalesce Completes Investment in Examinetics

Debut fund investment in Examinetics is driven by megatrends that increasingly require businesses to adhere to complex regulatory and compliance mandates

Examinetics’ compliance testing services include medical examinations, on-site and on-demand hearing testing, noise surveys, and air sampling.

SOURCE: Examinetics

Coalesce Capital has acquired Examinetics, a provider of occupational-health compliance services. Freedom 3 Capital, an investment firm that previously backed Examinetics, is reinvesting in the company alongside Coalesce Capital.

Examinetics’ compliance testing services include medical examinations, on-site and on-demand hearing testing, noise surveys, and air sampling. The company has more than 3,000 customers operating in more than 18,000 locations and has a fleet of 130 mobile testing units. Examinetics is headquartered in Overland Park, Kansas.

Source: Examinetics

“We are incredibly energized to be partnering with Coalesce for the next phase of Examinetics’ growth,” said Gary Gluzberg, the president of Examinetics. “It is an exciting time for our company as we join up with such a proven private equity team in the business services sector. Their commitment enables Examinetics to accelerate our growth, invest further capital to serve customers and continue to build national scale.”

“We were highly motivated to personally reinvest equity in the business as part of this recapitalization,” said Paul Fenaroli, the CEO of Examinetics. “In addition to our faith in the business model, our commitment to our clients and their employees, and our mission to improve workplace health and safety, the Coalesce team’s track record of success in business services will provide Examinetics with access to capital and expertise that we expect to be transformative to our business.”

“We back management teams who are building the platforms of tomorrow,” said Stephanie Geveda, the founder and managing partner of Coalesce. “Examinetics has an incredibly high-quality business model, driven by megatrends around increasingly complex regulatory and compliance requirements facing businesses. Today, Examinetics reaches more than 3,000 clients in over 18,000 locations annually, and we could not be more excited to partner with this team to deliberately scale this business, further enhancing the range of customers they serve and the value they can deliver to them.”

Coalesce primarily makes control investments in North America-based human capital and technology-enabled business services companies that have at least $5 million of EBITDA and $25 million of revenue. Coalesce was founded in 2022 by Stephanie Geveda, a former Warburg Pincus professional, and held an initial closing in May of its debut fund with $329 million of a targeted $750 million in total capital.

Source: Examinetics

“We are excited to partner with Coalesce to scale this business. It has already been a terrific investment for us, and its tailwinds remain robust,” said Brian Block, a partner at Freedom 3. “The value-creation playbook that Coalesce’s team has defined for business services will continue to drive sustainable, profitable growth for Examinetics.” Mr. Block and Ms. Geveda have known each other for more than two decades, initially started their investing careers together, and have collaborated on numerous other investments.

Freedom 3 Capital invests from $20 million to $150 million in middle market companies that have from $15 million to $100 million in EBITDA. The firm’s typical transaction structure includes a combination of junior capital and equity. Freedom 3 has offices in New York City, Kansas City and Dallas.

Financing for the buy of Examinetics was provided by the Bank of Montreal.

© 2023 Private Equity Professional | August 23, 2023

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