Arlington Capital Partners has acquired J&J Worldwide Services. This buy is Arlington’s fourth investment for its fifth fund which closed in June 2019 with $1.7 billion of capital.
Austin-based J&J Worldwide Services is an outsourced provider of facility maintenance services including operations support at military bases, and engineering services – environmental, housekeeping, janitorial, and custodial – at military hospitals and laboratories in the US, Germany, the Philippines, South Korea, Guantanamo Bay (Cuba), and other countries.
J&J was founded in 1970 by Johnny Voudouris and James Lee. Mr. Lee retired in 1990 and Mr. Voudouris (he passed away in 2019) and his wife Sharron continued to own and run the company. Today, J&J’s senior management, led by CEO Steve Kelley, has invested in this transaction in partnership with Arlington Capital and will continue to lead the company.
“In Arlington Capital, we found the ideal partner to carry on Johnny Voudouris’ legacy. They are committed to preserving and cultivating the mission and employee-focused culture that Johnny and Sharron Voudouris have imbued in the company since its founding 50 years ago,” said Mr. Kelley. “The investment from Arlington will allow J&J to remain an independent entity and retain its strong culture. The management team and I are excited to begin this new chapter of J&J’s history with Arlington Capital.”
Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. Areas of interest include government-regulated industries and adjacent markets including aerospace & defense, government services and technology, healthcare, and business services.
“J&J has established itself as a trusted partner to its federal government clients through its dedication to customer service and unwavering commitment to quality,” said Michael Lustbader, a managing partner at Arlington Capital. “We are honored and excited to partner with Steve Kelley and the rest of the exceptional management team to build on the Voudouris family’s legacy and carry J&J’s long track record of success into its next phase of growth.”
“J&J’s service offerings have never been more important than right now amid the COVID-19 pandemic in order to protect our customers’ workforce,” added Mr. Lustbader. “Our investment in J&J continues Arlington’s history of building differentiated government services providers in partnership with founders and existing senior management as the company’s first institutional investor.”
“J&J has built a durable industry leader focused on providing specialized services to demanding customers. We have been impressed with its ability to generate industry-leading growth while developing a world-class reputation with its deep commitment to the success of its customers,” said Gordon Auduong, a vice president at Arlington Capital. “We believe that Arlington can provide the strategic support and investments necessary to expand the capabilities of J&J to accelerate its already strong growth trajectory.”
Arlington Capital, based in Che
vy Chase, Maryland, is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.
Private Equity Professional | July 9, 2020