Lincoln Road’s Newest Platform Corners Houston Landscaping Market

Lincoln Road’s Newest Platform Corners Houston Landscaping Market

Monroe Capital backs the formation of Silversand with senior debt and an equity co-investment

Silversand provides landscaping, irrigation management, tree care, interior plant care and holiday decoration services to more than 1,500 customers across the Houston, Dallas-Fort Worth and Bryan-College Station metropolitan areas.

SOURCE: Silversand Services

Lincoln Road has acquired Silversand Services and SLI Landscape, providers of commercial landscaping services in the Houston metropolitan area.

Silversand’s and SLI’s services include landscaping, irrigation management, tree care, interior plant care and holiday decoration services. Silversand was founded in 1983 and SLI was founded in 2003.

In March 2023, Lincoln Road acquired Zodega Landscaping, a Houston-headquartered provider of commercial landscape maintenance, lawn care, irrigation system management, and ancillary services to property management companies, industrial complexes, office buildings, and apartment complexes. Zodega has an additional office in Dallas. Since 2017, private equity owned Zodega had acquired and integrated nine landscaping businesses.

Source: Silversand Services

Lincoln Road will merge the operations of Silversand and SLI into Zodega. Rob Dihu, the CEO of Zodega , will be the CEO of the combined businesses which will go to market under the Silversand brand. On a combined basis, Silversand will have more than 1,500 customers including HOAs, office complexes, retailers, medical providers, residential, government and industrial clients across the Houston, Dallas-Fort Worth and Bryan-College Station metropolitan areas.

Source: Silversand Services

“I am incredibly fortunate to partner with Lincoln Road and look forward to the next phase of our growth. Together, we will continue to provide our customers with a full suite of services performed at the highest quality levels and customer service that they expect,” said Somir Paul, the founder of Silversand Services.

“We’re thrilled to combine three leading and highly complementary businesses focused on delivering exceptional landscaping and customer service to Texas,” said Jeff Magny, the managing partner of Lincoln Road. “These talented management teams have built best-in-class companies and have established true partnerships with a growing base of clients. We believe there are numerous market opportunities, both in new geographies and new ancillary services, and we look forward to supporting Silversand in continuing to set new standards of excellence in the commercial landscaping services space.”

Monroe Capital, as administrative agent and sole lead arranger, provided senior debt to back the buy of Silversand and SLI. Monroe also made an equity co-investment.

Monroe Capital (NASDAQ: MRCC) provides senior and junior debt financing to middle-market businesses, special situation borrowers, and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based, and enterprise value-based loans; and equity co-investments. The firm was founded in 2004 and is headquartered in Chicago with 10 additional offices throughout the United States and Asia.

Lincoln Road invests in specialty manufacturing, business services, value-added distribution companies that have at least $3 million of EBITDA. The firm was founded in 2015 by Jeff Magny, a former senior vice president at Sun Capital Partners, and is headquartered in Miami.

Over the past five years, Lincoln Road has completed 26 transactions across three platforms, including Silversand Services. The two other platforms were Brothers National, a Virgina-headquartered provider of asphalt, concrete and paving services, that was sold to Pave America, a portfolio company of Shoreline Equity Partners, in February 2023; and Republic Fire Protection, a Georgia-based supplier of fire extinguishers, sprinklers, and emergency lighting equipment, that was sold to Summit Companies, a portfolio company of CI Capital, in June 2021.

© 2023 Private Equity Professional | November 17, 2023

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