Grove Mountain Partners has sold Central States Paving and Concrete to Pave America, a portfolio company of Shoreline Equity Partners and Trivest Partners. Grove Mountain will maintain an equity interest in the business in partnership with Shoreline and Trivest.
Shoreline formed Pave America in June 2021 (then Pavement Partners) in partnership with Tom York, the former CEO of private equity owned Fire & Life Safety America, to create a platform to acquire pavement repair and maintenance providers across the United States.
Pave America’s first acquisition was the buy of Finley Asphalt & Concrete in June 2021. Additional add-ons include Cincinnati Asphalt in August 2022, Maryland-based Chamberlain Contractors in January 2022, and North Carolina-based Turner Asphalt in January 2022, and Maryland-based Chamberlain Contractors in January 2022.
In February 2023, Pavement Partners merged with Brothers National, a Virginia-based asphalt, concrete and paving company owned by Lincoln Road Global Management and Trivest Partners, to form Pave America.
Today, Pave America is a provider of asphalt and concrete services including maintenance, repair, milling, sealcoating, and new paving services to commercial, municipal, institutions, and general contractors. The company has more than 1,400 employees and is headquartered near Washington DC in Warrenton, Virginia.
Central States is a provider of standard and specialty concrete mixes and concrete construction services including pumping, placement, and finishing to governments, commercial and industrial customers.
Grove Mountain first invested in Central States in December 2021 with the buy of Milwaukee-headquartered PLM Paving and Concrete. Other add-on acquisitions followed with the buys of Indianapolis-based Sipes Asphalt and Paving, Wichita-based Encore Pavement, and Green Bay-based Asphalt Seal & Repair.
“The Central States team has been outstanding, and we are incredibly appreciative of their efforts and accomplishments over the past two years,” said Stephen Fraser, a partner at Grove Mountain.
“The Grove Mountain team has over nine decades of significant experience with home and specialty business service companies. We seek to partner with management teams that are committed to building great organizations and have strong track records of success,” said Ransom James, a managing partner at Grove Mountain. “The results of this investment reflect our process and values, and we are happy to remain as equity investors in Pave America.”
MidCap Financial
was the administrative agent, joint bookrunner, and joint lead arranger on a $77.2 million senior secured credit facility used to back the acquisition of Central States by Pave America. Tyler Wilson, a director at MidCap, led the transaction. MidCap, in alliance with its investment manager Apollo Capital Management, is a middle-market-focused, specialty finance firm that provides debt instruments of $10 million to $750 million to companies across all industries.
Shoreline invests up to $100 million per transaction in support of buyouts, recapitalizations, and corporate divestitures. Typical target companies will have enterprise values from $50 million to $250 million and EBITDA of $5 million to $25 million. Sectors of interest include specialized manufacturing, value-added distribution, and business and facility services. In January 2020, Shoreline held an oversubscribed and hard-cap close of its first fund, Shoreline Equity Partners Fund LP, with $300 million in capital commitments. The firm was founded in March 2019 and is based near Jacksonville in Neptune Beach, Florida.
Trivest was founded in 1981 and has completed more than 500 transactions totaling over $8 billion in value. Sectors of interest include niche manufacturing, distribution, business and healthcare services, and consumer industries. Trivest has approximately $4 billion in assets under management and an investment team of more than 60 professionals in offices in Coral Gables (headquarters), Los Angeles, Philadelphia, Chicago, and Toronto.
Grove Mountain Partners invests in lower middle market home service companies and specialty business service companies that have annual revenues between $15 million and $200 million. The firm was founded in 2020 and is headquartered in Atlanta.
© 2023 Private Equity Professional | October 11, 2023
