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NEW YORK, August 8, 2017 — Soundcore Capital Partners, LLC (“Soundcore” or “the Firm”), a control oriented, New York-based private equity firm that invests in lower middle market businesses, announced today that its portfolio company Sweeping Corporation of America, Inc. (“Sweeping Corp.” or “SCA”) has completed the acquisition, in partnership with management, of Reilly Sweeping, Inc. (“Reilly Sweeping,” “RSI,” or “the Company”), marking the Firm’s largest investment to date.

Headquartered in Fairless Hills, PA, Reilly Sweeping has provided parking lot and street sweeping services to the Mid-Atlantic region for over 45 years. Offering consistent and exceptional service to its municipal, industrial and local customer base, paired with an extensive footprint that spans across Pennsylvania, Ohio, Maryland, Washington, D.C., Delaware, Virginia and New Jersey, Reilly has grown into the region’s largest sweeping provider.

SCA’s President and CEO Christopher Valerian stated, “Reilly Sweeping is one of the most respected companies in our industry. With a majority of its operations contiguous to our existing locations, Reilly solidifies our leading position in these markets and further expands our platform for additional growth opportunities. We are extremely pleased that Patrick, Sean and Michael Reilly will maintain important leadership roles within RSI, and we expect that the Company’s support and commitments to its employees, customers, and the communities it serves throughout two generations of family ownership will be further strengthened under our stewardship.”

“Once we identified family-owned and -operated Reilly Sweeping as the next acquisition for our Sweeping Corp. platform, we worked closely with the Reilly brothers and existing management to ensure a timely, seamless transition amongst the RSI team and its loyal customers. We are very excited to partner with the team, and to support their continued growth and success as we actively expand our SCA reach,” added Jarrett Turner, Soundcore’s Managing Partner.

“The addition of Reilly Sweeping brings a multi-state, best-in-class company into our platform and meshes with our buy and build strategy in the power sweeping space. I am very pleased with the progress we have made in acquiring great companies with proven leadership, and look forward to continuing to scale the business,” said Feliks Zarotsky, Managing Partner of Soundcore.

With the acquisition of Reilly Sweeping, Inc., SCA operates a fleet of 350 units through 21 locations, forming the largest self-performing power sweeping company in the United States.

Vorys, Sater, Seymour and Pease LLP provided exclusive legal counsel for Soundcore. Fox Rothschild LLP and HighBank Advisors provided exclusive legal and financial advisory to Reilly. Terms of the transaction were not disclosed.

About Reilly Sweeping:
Since founding Reilly Sweeping, Inc. in 1971, Gerald M. Reilly has always believed that if a customer is pleased with our level of service, they will use us again. RSI provides the highest level of power street sweeping service with state-of-the-art equipment for every project we complete. As a family run business, RSI strives for complete customer satisfaction because our reputation is built on it and, without our customers, there would be no business. For more information on RSI, please visit www.reillysweeping.com

About Sweeping Corporation of America:
Sweeping Corp provides street, parking lot and construction site sweeping, catch basin cleaning and several ancillary services including pavement maintenance and snow management to state, municipal, commercial, industrial and residential customers throughout the Eastern region of the United States. Servicing over 25,000 miles of roadways and parking lots each month, Sweeping Corp offers reliable, consistent and thorough service from highly-trained, certified technicians using state-of-the-art equipment. For more information, please visit
www.sweepingcorp.com

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SiteOne Landscape Supply continued its string of acquisition announcements by announcing the acquisition of South Coast landscape Supply in Orange County, California.

 Started in 1981, South Coast Supply has two locations serving the Orange County, California market. South Coast Supply is a leader in the distribution of hardscape, natural stone and related products to landscape professionals. The acquisition of South Coast Supply expands SiteOne’s hardscape offering and footprint in Orange County.

“South Coast Supply has a passionate and talented team providing excellent quality, service and value to their customers. We are committed to delivering the best customer experience in the Green Industry and the combination of South Coast Supply and SiteOne brings us one step closer to achieving that goal”

“South Coast Supply is a terrific fit with SiteOne as they add depth to our existing hardscape presence in Southern California. This acquisition, in addition to the American Builders Supply acquisition in March, reaffirms our commitment to bringing a full range of landscaping solutions to our customers and expands our geographical coverage in the hardscape market. The addition of South Coast Supply further bolsters our market leading position in Southern California,” said Doug Black, Chairman and CEO of SiteOne Landscape Supply.

“South Coast Supply has a passionate and talented team providing excellent quality, service and value to their customers. We are committed to delivering the best customer experience in the Green Industry and the combination of South Coast Supply and SiteOne brings us one step closer to achieving that goal,” said Black.

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Most people think of starting a business as risky, but unless you invest a significant amount of start-up cash in your venture, you’re not really risking much other than your time.
That changes if you’re lucky enough to get your business off the ground. As your company grows, you start to risk more and more of your wealth because the business you’ve built is actually worth something. The longer you hang on to it, the more you have to lose.
This phenomenon makes owners become more risk averse as their business grows, potentially squeezing off growth to avoid risking what they’ve created. This can mean the owner goes from a company’s great asset to its biggest liability.
Cigar City Brewing
For an example of how growth can impact an owner’s appetite for risk, let’s look at the case of Joey Redner, the founder of Florida-based Cigar City Brewing. Redner’s craft beer operation started off in 2009 with the relatively modest goal of selling 5,000 barrels of beer per year.
Cigar City proved popular with the locals and Redner was able to sell 1,000 barrels of beer in his first year of business.
Cigar City Brewing continued to grow but was thirsty for cash, eventually forcing Redner to take on an SBA loan. Redner quickly surpassed his 5,000-barrel goal, and by 2015, had scaled all the way up to 55,000 barrels per year, at which point he ran out of capacity in his brewing facility.
To get to the next level, Redner would have had to find another $20 million for a major expansion, but he was tired of the feeling of being “all in” at the poker table. He had built something successful and wanted to enjoy financial security rather than having to roll his winnings into even more debt that he would have to personally guarantee with the bank.
Redner decided to sell even though his business was still growing and he had built a brand Floridians loved.
And therein lies one of the hidden reasons owners decide to sell. They are tired of shouldering all of the risk. Most of us have a limited appetite for risk, and, as the Bob Dylan song goes, “When you ain’t got nothing, you got nothing to lose.” Start-ups aren’t risking much, but when you build something successful, every day that you decide to keep it is another day you have all (or most) of your chips on the table, and, no matter how strong your hand, eventually we all decide to cash in.

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Advancer Global, an integrated services provider offering workforce solutions and services in Singapore, announced that company’s wholly-owned subsidiary, Advancer Global Facility Pte,  entered into an agreement to acquire 76% of shares in Singapore-based Envirocare.

Advancer Global entered the sale and purchase agreement with Fat Trees Pte. Ltd., a company incorporated in the Republic of Singapore. Fat Trees will acquire the remaining 24% of shares in Envirocare.

Envirocare was incorporated in the Republic of Singapore on 16 January 2012, and its principal activity is the provision of landscape planting, care and maintenance services such as garden installation and maintenance, grass cutting, tree felling and pruning in Singapore. Envirocare has an issued and fully paid-up share capital of S$20,000 (USD 14,450) consisting of 20,000 ordinary shares, which are wholly-owned by Chow Foong Kuan before the proposed acquisition.  The maximum aggregate cash consideration of the proposed acquisition is SGD 300,000 (USD 216,810).

“The proposed acquisition is in line with the group’s plans to expand its range of services within its facilities management division and to further strengthen its service offerings by providing a holistic suite of facilities management solutions and services to its wide base of customers,” Advancer stated.

“The Board is of the view that the proposed acquisition would provide a larger skilled workforce and expertise for the group to tap on, enabling it to be a direct provider of landscaping services, thereby expanding its landscaping business and its market share in Singapore. In addition, the group will be able to build on Envirocare’s established customer base and its proven track records in the provision of landscaping services,” Advancer stated.

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In the United Kingdom, Fast expanding Nurture Landscapes has secured its fifth acquisition in 12 months with the purchase of the landscape maintenance operations of Bedfordshire-based Frosts Group. The acquisition increases Nurture’s turnover to £35 million and staff numbers to more than 500.

Frosts landscape maintenance business has annual sales approaching £4m and includes the provision of office plant displays and Christmas trees. The 70 plus staff and contracts will transfer to Nurture on 1^stAugust along with Frosts Divisional Director Darrell Hedden.

Major clients transferring include Milton Park and Abingdon Business Park both near Abingdon, ISIS Reach in Kent, Upton Way residential development in Northampton, The Building Research Establishment in Watford and Bedfordshire University.

Most contracts will be managed out of a new office/depot near Frosts base at Woburn Sands under Nurture Midlands Director Gordon Whyte. Others will be serviced from one of Nurture’s local regional offices across the country.

Managing Director of Nurture, Peter Fane, commented: “The acquisition offers great synergy with our business and we anticipate a seamless integration. In Oxfordshire, for instance, we already work at Bicester Village and Oxford Business Park, so Milton Park and Abingdon Business Park fit right into the centre. I am delighted to welcome all the Frost employees to the Nurture family.”

James Frost, the third generation of his family to manage Frosts Group added: “Nurture is the perfect home for the landscape maintenance business and I have no doubt that the staff and clients are in excellent hands. This move allows us to focus on our core construction and garden centre operations where we will continue to build on our 80 year reputation.”

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Trinity Private Equity Group (TPEG) of Southlake, Texas, has completed a private equity recapitalization of Gold Landscape of Denton County, Texas

Gold Landscape provides maintenance, irrigation, design, and installation throughout the Dallas/Fort Worth metroplex, primarily for multifamily developments and large-scale homeowners associations. TPEG partnered with the management team to lead a recapitalization of the company and to support expansion throughout Texas.

Plexus Capital provided mezzanine financing in connection with the transaction.  This is the second landscape services deal for Plexus which participated in the recapitalization of Rotolo Consultants, Inc. of Slidell, Louisiana in 2015.

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Park City—A Park City couple is the new owner of Park City Nursery. Sophy and Grady Kohler purchased the nursery from Steve and Ann Barrett. Financial terms of the transaction were not disclosed. The nursery was started by Steve Barrett in 1983.

“We do not sell anything that is sold at a big-box store,” said Sophy Kohler. “We are trying to increase the allure for people that want to check out the history of Park City. We want people to know this was the location of the original Snyder Homestead.”

The Kohlers, who are full-time residents of Park City’s Old Ranch Road community, will continue the nursery’s 35-year legacy of selling trees, shrubs and flowers that thrive at high-altitude settings. Park City has an elevation of 7,000 feet, which presents unique challenges for gardeners.

The nursery carries a variety of trees, herbs, vegetables, flower container displays, ground covers, shrubs, wildflower seeds, specialty gardening tools and other supplies. A separate bulk yard location offers rocks, boulders, gravel, mulches, topsoil, and compost.

Trees are handpicked and purchased from private farms in Idaho, Wyoming, and Oregon. According to the International Society of Arboriculture, each front yard tree adds 1 percent to a homeowner’s sale price, while large specimen trees can add as much as 10 percent to property values.

The Kohlers plan to expand the nursery’s retail presence with gifts and boutique garden line supplies. The nursery sits on six acres of property and includes the original Samuel Snyder home and general store, built in the 1880s. The Kohlers plan to restore the home and store and open them to customers. Snyder, a native New Yorker and Mormon pioneer was one of Park City’s original homesteaders. The Snyderville Basin was named after him.

A big part of the nursery’s attraction are 15 employees who are specialists in landscaping, plants and design. “Some of our employees have been here for more than 15 years,” Sophy Kohler said. “They know so much. People can walk in with a leaf or twig and say, ‘Hey, what is this?’ Or, they might ask, ‘There is this black mark on my tree, what’s causing this?’ Our team can answer their questions.”

Sophy is a former executive of a Fortune 500 company and was born and raised in New York. Grady, a Utah native, is owner and principal broker of Windermere Utah Real Estate, a leading residential and commercial real estate company with offices in Park City and five other locations in Utah. Both are skiers, mountain bikers, and members of the Park City Sailing Club.

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ABM has announced that it will July 11 buy GCA Services Group from Thomas H. Lee Partners LP and Goldman Sachs Merchant Banking Division.  GCA, based in Cleveland, provides facility services in the education and commercial sectors, providing facilities maintenance, janitorial services, grounds management, vehicle services and outsourced workforce solutions. The deal is expected to close by September.

PRESS RELEASE

NEW YORK–(BUSINESS WIRE)–ABM (NYSE:ABM) (“the Company”), a leading provider of facility solutions, today announced it has entered into a definitive agreement to acquire GCA Services Group (“GCA”) from affiliates of Thomas H. Lee Partners, L.P. and Goldman Sachs Merchant Banking Division for approximately $1.25 billion in cash and stock.

GCA is a leading provider of facility services in the education and commercial industries, specializing in facilities maintenance, janitorial services, grounds management, vehicle services and outsourced workforce solutions. With over 37,000 employees in 46 states, the District of Columbia, and Puerto Rico, GCA is headquartered in Cleveland, OH.
Scott Salmirs, President and Chief Executive Officer of ABM Industries, commented, “This transformative and accretive acquisition will accelerate our 2020 Vision by creating a broader platform upon which we can grow profitably and further distinguish ABM as an industry-focused solutions provider. We look forward to gaining insights from GCA, a well-established industry leader with top talent. GCA’s client-centric goals and philosophies align closely with those of ABM, and we are excited about the value this combination will bring to our clients, our employees and our shareholders.”
Bob Norton, Chairman, President and Chief Executive Officer of GCA, commented, “We are excited to be joining the ABM family, which will allow us to better serve our clients with more services and greater reach. We believe our combination with a company that shares our vision for profitable growth will lead to significant long-term value for all stakeholders.”
Strategic Rationale
The acquisition aligns with the core principles of ABM’s 2020 Vision strategy of achieving long-term profitable growth:
• Industry-Focused Approach: The Company and GCA have complementary organizational structures by industry group and the combination will enhance ABM’s presence in the Education market and Commercial industry. The combined expertise in these areas will reinforce ABM’s 2020 Vision evolution from a facility solutions provider managed by service line to an industry-focused organization.
• Profitable Growth: GCA has a demonstrated track record of longstanding revenue growth and profitability driven by its industry-focused operational strategies. The acquisition is expected to increase the overall margin profile of ABM and to solidify the Company’s 2020 Vision-driven, client-centric structure and strategy for long-term profitable growth.
• The ABM Way: The transaction will provide a broader platform for ABM to implement its standard operating practices, which, when combined with the best-in-class operations of GCA, will enhance the Company’s capabilities for its clients, and accelerate cross-selling of its Technical Solutions and specialty engineering services.
• Valuable Synergies: The acquisition is expected to produce cost synergies in overhead and procurement, while also enabling greater efficiencies in areas such as shared services and IT.
Financial Highlights
The acquisition of GCA is expected to accelerate ABM’s ability to enhance long-term shareholder value. While ABM intends to provide greater detail surrounding the long-term financial impact of the transaction after the acquisition closes, ABM expects:
• Revenue contribution of approximately $1.1 billion and adjusted EBITDA of approximately $100 million, respectively, after the first full year of ownership.
• Revenue increase of approximately $600 million within the Education industry group, with the remaining $500 million to be allocated to other key industry groups during the integration process.
• Annualized, run rate cost synergies of approximately $20 million to $30 million, which are expected to be realized by the second full year of ownership.
• Total debt, including standby letters of credit, of approximately $1.5 billion, and total debt to proforma lender-adjusted EBITDA of approximately 4.0x, as calculated under the Company’s amended credit agreement, which is not expected to impact ABM’s current dividend payment policy.
Transaction Details
Under the terms of the agreement, ABM will acquire GCA for $851 million in cash and $399 million in shares of ABM common stock subject to customary adjustments for working capital and net debt.
The transaction is expected to close by September 2017, subject to customary closing conditions including required regulatory approvals. ABM expects to incur approximately $70 million in one-time, transaction-, synergy-, and integration-related costs.
Following the closing of the transaction, affiliates of Thomas H. Lee Partners, L.P. and Goldman Sachs Merchant Banking Division will own, in the aggregate, approximately 14% of ABM’s outstanding shares and will enter into a shareholders agreement with the Company providing for, among other things, customary standstill and voting obligations, transfer restrictions and registration rights.
Josh Bresler, Managing Director of Thomas H. Lee Partners, L.P., stated, “We would like to thank Bob Norton, the entire GCA management team and the over 37,000 GCA employees for a tremendous partnership. GCA is an incredible company with a proven track record of operating performance, safety and specialty market expertise. We are excited about the growth prospects of GCA as an important part of ABM, and look forward to benefiting from the combined company’s future upside.”
Chris Crampton, Managing Director of Goldman Sachs Merchant Banking Division, said, “The combined company will create a market leader in facilities services, and will enable management to offer its customers additional locations, services, expertise and resources.” Mr. Crampton continued, “We look forward to supporting Scott and the ABM management team as they continue to successfully execute on their 2020 Vision.”
Financing
ABM plans to fund the cash portion of the purchase price and transaction expenses via its amended revolving credit facility, in addition to a five-year amortizing term loan. JPMorgan Chase Bank, N.A. and BofA Merrill Lynch have committed to provide the financing for the transaction.

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Recent Transactions

SCG Partners, a Cleveland-based private equity firm, announced that it has acquired an additional landscape business in Florida to add to the three it acquired in the Melbourne, Florida area last year.  SCG did not disclose the name if its new acquisitions.

In Franklin, Tennessee, Pure Green has acquired Turf Team.

In Northern Nevada, Celtic lawn and Landscape has merged with Signature Landscapes.

Marquette Capital Partners announced that it has participated in a recapitalization of Girard Environmental , based in the Orlando area.  Marquette is a mezzanine investor.

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