Hoffman Southwest, a portfolio company of ORIX Capital Partners, has acquired sister companies Accumark, Pipe Vision, and Benchmark (together Accumark).
Accumark provides subsurface utility engineering, underground utility locating, pipe inspection and pipe cleaning services across the Mid-Atlantic region of the US. Customers of the company include municipalities, government agencies, utilities, construction contractors, and engineering firms.
The company, led by President Craig Martin, is headquartered in Ashland, VA with additional branch locations in Virginia, North Carolina and Maryland (www.accumark.us).
Hoffman Southwest (HSW) provides underground pipe inspection, trenchless pipe repair, excavation and cleaning services for municipal and utility customers under the Pro-Pipe brand; and plumbing, drain cleaning, trenchless pipe repair and water restoration services for commercial and residential customers as the largest franchisee of the Roto-Rooter brand. HSW operates 11 Roto-Rooter branches in California, Arizona, Utah, Oregon and Texas. In 1992 the company established Pro-Pipe which now operates through multiple locations across Arizona, California, Oregon, Washington, Utah, Colorado, Nevada, Texas and North Carolina. HSW is headquartered in Mission Viejo, CA (www.hswcorp.com) (www.pro-pipe.com).
“The addition of Accumark allows us to further expand our underground infrastructure capabilities nationwide,” said Mark Burel, CEO of HSW. “Accumark is a recognized leader for subsurface utility engineering services within its markets and has an outstanding track record of delivering safe and reliable utility locating and pipe inspection services to its customers. We look forward to working with Accumark to further expand its footprint by leveraging our combined capabilities and customer relationships.”
ORIX acquired Hoffman Southwest from Sterling Partners in February 2017. The buy of Accumark is the company’s second add-on under ORIX ownership and follows the February 2019 acquisition of Tri-State Utilities, a Chesapeake, VA-based provider of trenchless pipe rehabilitation services.
“With the acquisition of Accumark, and Tri-State Utilities earlier in the year, ORIX Capital Partners continues to realize our goal of seeking strategic add-ons for HSW,” said Terry Suzuki, president and CEO of ORIX Capital Partners. “These acquisitions will complement the strong organic growth that HSW has experienced since our initial investment and solidify HSW as a national provider of underground inspection, cleaning, rehabilitation and infrastructure services.”
ORIX Capital Partners invests from $75 million to $200 million of equity per transaction in North America based middle-market companies that are active in the business services, infrastructure services and industrials sectors. New York-based ORIX Capital Partners is a business unit of ORIX USA, a Dallas-based financial services firm. Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned financial services company with operations in 38 countries and regions worldwide (www.orixcapitalpartners.com).
© 2019 Private Equity Professional | May 28, 2019
