Eureka Growth Capital has acquired the assets of Merit Service Solutions through a newly-formed holding company called Exterior Maintenance Resources, Inc. As part of this transaction, Eureka recruited Joe Giandonato as the new CEO of Merit and partnered with the management team of the company to establish a platform to build a national provider of outsourced exterior facilities management services.
Merit Service Solutions was founded in 1976 as Lipinski Property Services to provide landscape maintenance and irrigation services. In 1986 the company expanded to provide snow and ice removal services throughout the Delaware Valley Region. In 2006 the company became the third largest snow removal provider in the US according to the Snow & Ice Management Association. In 2013 the company changed its name to Merit Service Solutions.
Today, Merit provides an array of services including snow and ice management; parking lot sweeping, seal coating and striping; and landscape design, maintenance and irrigation. Customers of the company include national retailers, commercial property managers, multi-family housing developers, government-owned properties and other institutional customers. Merit has seven company locations and is headquartered near Philadelphia in Malvern, PA (www.meritservicesolutions.com).
Mr. Giandonato previously worked at Merit as the company’s Vice President of Business Development and earlier in his career (from October 2000 to May 2011) was the President of the Haley Company – a provider of lawn service, landscape design and installation, snow plowing, installation and removal of seasonal decorations.
“We are very excited to work with Joe Giandonato and the talented members of existing operating management, including COO Joe Hoey and CFO Steve Rudd,” said Chris Hanssens, Managing Partner of Eureka. “We look forward to the opportunity to help Merit realize the growth potential that exists within Merit’s national network of service providers, its dedicated team, and its commitment to be an ideal outsourced services partner.”
Eureka Growth Capital makes control and non-control investments in companies with $10 million to $75 million in revenue. Initial equity investments range from $4 million to $10 million but larger investments can be made with co-investment from the firm’s limited partners. Eureka Growth prefers investment opportunities in the Mid-Atlantic and Eastern US. The firm was founded in 1999 and is based in Philadelphia (www.eurekagrowth.com).
“Eureka is the perfect partner for Merit Service Solutions. They brings significant experience and a track record of success within our outsourced business services vertical and shares our team’s strategic vision of becoming the leading provider of highest-quality exterior facility maintenance services to customers nationwide,” said Mr. Giandonato.
M&T Bank (www.mtb.com) provided debt financing to support the acquisition.
© 2016 Private Equity Professional | December 2, 2016