KLH Capital has sold Shenandoah Industrial Solutions, a provider of infrastructure services for stormwater and sanitary systems, to GenNx360 Capital.
Shenandoah specializes in inspecting, cleaning, and rehabilitating stormwater and sanitary infrastructure through trenchless methods that minimize disruption. These services, mandated by environmental regulations, are essential for both public and private sectors that require consistent maintenance of their stormwater and sewage systems.
Shenandoah, led by President Anthony Guglielmi, is headquartered in Pompano Beach, Florida.
“Navigating and ultimately choosing the right financial partner for the company’s prior owners, me, and my team, was the most important conversation given the growth we were seeing and experiencing,” said Mr. Guglielmi. “We needed a partner who could add real value beyond just money. My prior owners desired liquidity and a path to retirement, and I wanted to bet on myself and own as much as I could, as we knew the market’s demand was here for our critical service offering. Will and the team at KLH invested heavily in our growth by providing the technical resources we needed to scale properly. We are forever thankful to KLH and look forward to our next chapter with GenNx360 Capital Partners.”
KLH’s involvement with Shenandoah began with a management-led buyout in February 2019. Over the next five years, Shenandoah completed one add-on acquisition in October 2020 with the purchase of Bay Area Environmental Services, a provider of water and sewer pipeline cleaning, testing, and restoration services headquartered near Tampa in Gibsonton, Florida.
“Shenandoah was a classic example of an industrial services platform investment for KLH,” said Will Dowden, a managing partner at KLH. “At the onset of our partnership, we facilitated a management-led buyout, enabling the company’s senior management team to become owners and C-level executives of the business. During our ownership, the company experienced significant growth by introducing additional service offerings, broadening our geographic footprint, completing a transformative add-on acquisition, implementing new systems and technology, and placing key personnel in leadership positions to drive the business forward.”
KLH makes majority and minority investments in family- and founder-owned distribution, specialty services, and niche manufacturing companies with EBITDA from $4 million to $20 million. The firm was founded in 2005 and is headquartered in Tampa, Florida.
“Our investment in Shenandoah aligns with our proactively targeted thesis in the underground infrastructure services sector,” said Pratik Rajeevan, a principal at GenNx360. “This is a sector we understand well and believe will benefit from significant tailwinds in the coming years. Shenandoah is a strong platform that has achieved outsized growth while maintaining a strong commitment to quality and customer service.”
“Shenandoah is led by an impressive management team that has built an industry-leading platform with a strong culture that is built around customer service and safety. We look forward to supporting the Shenandoah team in executing upon their growth strategy,” said Monty Yort, a managing partner at GenNx360.
GenNx360 invests from $25 million to $100 million in North American-based companies with revenues from $50 million to $500 million and EBITDA from $5 million to $35 million. Sectors of interest include business-to-business services and manufacturing. Since its founding in 2006, New York City-headquartered GenNx360 has acquired 28 platforms and 75 add-on acquisitions.
Raymond James was the financial advisor to Shenandoah on this transaction.
© 2024 Private Equity Professional | October 4, 2024
