Surface Preparation Technologies, a portfolio company of Branford Castle Partners since February 2017, has purchased the rumble-strip division (RSD) of Diamond Surface.
Surface Preparation Technologies (SPT) has installed more than 175,000 miles of rumble strips across 49 states. The company designs and manufactures its own fleet of rumble-strip machines, or “mills” which it believes run significantly faster and are more durable than competitors’ machines. The company’s mills can achieve speeds of up to 360 cuts per minute or over 20 miles of asphalt rumble strips in a single eight-hour shift. This is, according to the company, four times faster than its closest competitor. Faster cut times lead to less time lost for traffic control, more efficient road clean up, and can lead to early completion incentives. SPT was founded in 1988 and is led by CEO Steve Burke. The company is based in Mechanicsburg, PA (www.rumblestrips.com).
The personnel and assets of RSD will be integrated into SPT’s existing operations. “Diamond Surface’s division perfectly complements SPT and will significantly enhance SPT’s equipment capacity by providing even more depth of coverage across the country,” said Eric Korsten, a Managing Director for Branford. “It is a key strategic acquisition designed to take SPT’s business to the next level.”
In conjunction with the acquisition of RSD, SPT completed a full recapitalization of the company which was backed by Global Bankers Capital (www.globalbankerscapital.com).
Branford Castle invests in companies that have enterprise values of up to $75 million and also have from $1.5 million to $15 million of EBITDA. Sectors of interest include consumer products and services, commercial distribution, industrials/specialty manufacturing, business services and logistics. Between its founding in 1986 to 2016, Branford Castle operated as a family office. The firm is led by John Castle and David Castle and is headquartered in New York (www.branfordcastle.com).
Diamond Surface, the seller of RSD, is headquartered near Minneapolis in Rogers, MN (www.diamondsurfaceinc.com).
© 2018 Private Equity Professional | July 24, 2018