Eagle Merchant Partners (EMP), an Atlanta-based private equity firm specializing in franchise and multi-unit businesses, has acquired a majority stake in Sam the Concrete Man (SamCo), the largest residential concrete services franchisor in the United States.
SamCo is a franchised provider of driveway and sidewalk repair, patio installations, and other residential concrete projects. Its franchisees receive a suite of administrative support services, including a centralized call center for lead generation and scheduling.
Founded in 1989 by Sam Wilkins as a traditional concrete business, SamCo was sold to CEO Todd Stewart in 2007. Under Mr. Stewart’s leadership, the company expanded its operations and launched its franchise model in 2019. Today, the Denver-headquartered SamCo has over 80 franchise units across 30 states.
“We’re excited to partner with Eagle Merchant Partners to accelerate our growth,” said Mr. Stewart. “Their experience in franchising and multi-unit businesses makes them the perfect partner as we continue to scale our operations and explore new ways to serve our customers. This investment will help us take SamCo to the next level, expanding our footprint and enhancing the support we provide to our franchisees.” As part of the acquisition, Mr. Stewart will remain CEO and retain an equity interest in partnership with EMP.
The U.S. residential concrete services market is highly fragmented, with numerous regional players but no national leader. According to industry analysts, this $30 billion sector is set for steady growth, driven by continued residential construction and increased home improvement projects. As homeowners invest in renovations, companies like SamCo are well-positioned to benefit from these trends.
EMP has a strong track record in franchise business investments, focusing on expanding franchise networks, increasing brand recognition, and broadening service offerings. The firm’s portfolio of seven companies includes other notable franchise concepts, such as Code Ninjas, a Texas-based provider of computer coding education for children; a North Carolina-based provider of cleaning and sanitation services for restaurants, convenience stores, and institutional clients; and TCB Franchising, a Tennessee-based provider of home and commercial services under the AmeriSpec Inspection Services, Furniture Medic, and Renew Medic brands.
“SamCo has developed a best-in-class franchise model in a strong end market with substantial runway for expansion,” said Zack Taylor, a principal at EMP. “Our partnership with Todd and his team will allow us to scale SamCo’s franchise network, drive brand recognition, and explore additional services that align with the company’s core strengths.”
Based in Atlanta, EMP invests in franchise, consumer, and industrial companies primarily in the Southeastern United States. The firm targets companies with revenues of $20 million to $200 million and EBITDA between $2 million and $20 million.
In July 2023, EMP exceeded its fundraising target with the close of Eagle Merchant Partners I LP, raising over $265 million in capital.
© 2024 Private Equity Professional | October 29, 2024
