Trive Capital has added-on to its Amteck platform with the buy of Communication Management. Trive acquired Amteck in July 2015.
Communication Management is a designer and installer of structured cabling networks for healthcare facilities and other commercial market verticals. The installed networks include inside and outside cable plant installation (copper, fiber optic, data, voice and wireless), campus-wide network infrastructure, multiple building/multiple floor installations, video surveillance, telephone systems & audio/visual design and installation.
Communication Management was founded in 1986 and is headquartered in Columbia, SC with additional offices in Greenville, Charleston, and Myrtle Beach, SC (www.cminetworks.com).
Amteck provides design-build electrical construction services for a variety of markets, including industrial, commercial, institutional and multi-family residential. In addition to electrical construction, Amteck specializes in the engineering, design, installation, testing, certification, and troubleshooting of structured cabling/premises wiring systems including voice and data, access and intrusion, fire alarm, security and paging. Amteck was founded in 1977 and has approximately 500 employees. The company, led by CEO Daren Turner, is headquartered in Lexington, KY with additional offices in Louisville, KY; Dyersburg, TN; Greenville, SC and Dothan, AL (www.amteck.com).
Amteck has also just closed a new credit facility led by Los Angeles-based Tennenbaum Capital Partners (www.tennenbaumcapital.com) and will use the proceeds along with its operating cash flows to repay its existing debt, pay a dividend to Trive Capital, and for working capital and general corporate purposes. Additionally, the new facility provides an accordion feature that will allow Amteck to execute its add-on acquisition strategy.
“The strong feedback from the lending community and ability to complete a dividend recapitalization confirms the significant progress we have made with Amteck since our investment in 2015,” said Conner Searcy, a Managing Partner of Trive.
“Communication Management is a perfect example of an exceptional business that brings incredible opportunity to expand our technologies service offering,” said Mr. Turner. “We are excited about this transaction and other opportunities we will be able to pursue with the support of Tennenbaum, a highly experienced lender in our industry.”
“This financing provides Amteck with capital to bolster its acquisition strategy, demonstrates the strength of the company’s management team, and marks an important step in the investment timeline for Trive,” said Desmond Henry, a Managing Partner of Trive. “Amteck has a long history of finding exceptional talent and value in acquiring complementary businesses, like Communication Management, and this financing gives us significant runway to continue to pursue this successful growth strategy.”
Trive Capital invests from $10 million to $150 million of debt or equity in North American headquartered companies with revenues of $40 million to $1 billion. The firm is industry-agnostic but has specific experience in the following sectors: aerospace and defense, automotive, building products, business services, chemicals, construction and infrastructure, consumer goods, energy services, food and beverage, healthcare, plastics and packaging, and transportation and logistics.
The buy of Communication Management is Amteck’s fourth acquisition in the past 10 months. In March 2018, it acquired Madison, MS-based Southeastern Automatic Sprinkler, a provider of commercial and residential fire protection and safety products and services; in October 2017, it acquired Proformance Group, a Greenville, SC-based electrical contractor; and in September 2017, it acquired Dothan, AL-based Consolidated Electrical Contractors & Engineers.
In September 2017, Trive Capital held a final closing of Trive Capital Fund III LP with $1 billion of capital commitments. The new fund reached its hard-cap in just over three months and was oversubscribed from its initial $750 million target. Trive’s second fund closed at its hard cap of $500 million of capital commitments in September 2015.
Trive Capital was founded in 2012 by Conner Searcy and Chris Zugaro and is based in Dallas (www.trivecapital.com).
© 2018 Private Equity Professional | June 14, 2018
