Construction Acquisitions in 2022

Hastings Equity Partners has made a Fund V platform investment in GridSource, a Baton Rouge-based utility contractor, with founder Dusty Johnson retaining significant ownership and remaining active in management. Hastings said the investment will provide resources to grow GridSource’s telecom and gas infrastructure services to capitalize on accelerating broadband/fiber deployment and upcoming federal funding for broadband.

Sterling Infrastructure, Inc. (NasdaqGS: STRL) acquired Concrete Construction Services of Arizona L.L.C. (CCS) in a tuck-in transaction for a purchase price of $22 million paid in cash and Sterling common stock. CCS, which generates approximately $70 million in annual revenues and provides residential post-tension concrete foundations in the Greater Phoenix area, expands Sterling’s Building Solutions capacity and service offering in Arizona.

D.R. Horton, Inc. acquired the homebuilding operations and related assets of Riggins Custom Homes in Fayetteville, Arkansas, including ~3,000 lots, 170 homes in inventory and 173 homes in sales order backlog. The transaction is expected to be approximately $107 million in cash and will combine Riggins' operations with D.R. Horton's Northwest Arkansas platform to expand the company's local market presence.

Toronto-based private equity firm Lynx Equity Limited has acquired Resource4Floors, a full-service commercial flooring contractor headquartered in Fort Lauderdale, Florida. The deal is an add-on to Lynx's Lynx Flooring Portfolio (LFP) and expands the group's geographic presence into Florida while preserving existing management.

Texas First Rentals, a division of HOLT, has acquired Rental One, a family-owned construction equipment and storage container rental company based in Colleyville, Texas. The acquisition adds 15 locations across the Dallas–Fort Worth Metroplex and Central Texas, brings ~300 employees into Texas First Rentals and expands the buyer's footprint to a total of 40 locations across Texas.

TessPay, a Fort Myers-based fintech payments platform, has acquired Create.iF, a Birmingham-based multi-disciplinary construction and property consultancy. The deal expands TessPay's capability and end-market reach into construction and property services, enabling the company to integrate Create.iF's industry expertise with its smart-contract-enabled payments platform to facilitate financing and payments for construction projects.

Norwegian property developer OBOS has purchased 5 million Class A and 2 million Class B shares in Nordic construction company NCC from Nordstjernan for SEK 772.5 million (approx. SEK 110 per share), acquiring about 6.5% of capital and 23.1% of votes. Nordstjernan remains a significant owner after the transaction; OBOS says it will assume an active role alongside Nordstjernan and NCC's board and management to develop the business.

MarineMax, Inc. acquired Midcoast Construction Enterprises, LLC (Midcoast Marine Group), a Central Florida–based full-service marine construction company, adding marina development capabilities, specialized equipment, and waterfront real estate in Tarpon Springs, Florida. Midcoast founder and CEO Jack Fulford will continue to run the business as part of MarineMax's expanding marina and services platform.

Area Wide Protective (AWP), a Kohlberg-backed traffic management platform, has acquired two regional traffic control providers: MOTPlans, LLC (Fort Lauderdale, Florida) and CrossRoads, LP (Fort Worth, Texas). The add-on deals expand AWP’s geographic footprint and capabilities in maintenance of traffic, equipment sales & rental, and installation, bringing the combined network to roughly 143–144 facilities across 28 states and eastern Canada.

Construction Partners, Inc. (CPI) has acquired Ferebee Corporation, a Charlotte-based full-service hot‑mix asphalt and paving company with three hot‑mix asphalt plants in the greater Charlotte/Rock Hill area. The acquisition is a platform move that expands CPI's geographic footprint into western North Carolina and the Charlotte metro, and is expected to be accretive to earnings while maintaining the company's 2022 fiscal year-end leverage ratio.

RDCP Infrastructure (part of RDCP Group) has acquired a 90% stake in Bristol-based mechanical and electrical engineering firm Avon Combined Electrical Services (ACES). The deal, backed by lending from SME Capital and introduced by TML Finance & Advisory, aims to scale ACES’s regional M&E capabilities under the RDCP platform.

Shoreline Equity Partners has partnered with Core Roofing Systems, a commercial roofing services provider headquartered in Alpharetta, Georgia. The private equity firm made a recapitalization investment to support Core Roofing’s growth plan—including organic initiatives and add-on acquisitions—while founder Dusty DeVore retains a significant ownership stake and continues to lead the company.

Great Day Improvements, LLC has acquired Minnesota-based Your Home Improvement Company, a full-service home improvement business headquartered in St. Cloud, MN. The acquisition expands Great Day's footprint across the northern United States and strengthens its bathroom remodeling and full-service offerings; Steve Little will remain leading Your Home Improvement Company's executive team and Angle Advisors served as the seller's exclusive advisor.

Construction Partners, Inc. (CPI) acquired three hot‑mix asphalt (HMA) plants and related construction operations in the Nashville, Tennessee metro area from Blue Water Industries. The assets will be integrated as bolt‑on additions to CPI’s Alabama‑based platform Wiregrass Construction Company; the transaction also included a cash consideration and the transfer of CPI’s Daurity Springs Quarry to Blue Water Industries with aggregate sourcing rights retained by CPI.

Beti, a Tel Aviv–based cloud construction site management software provider, raised an $11 million strategic growth round led by PSG with participation from 97212 Ventures. The funding will support Beti's product development and accelerate its U.S. expansion following the opening of a Brooklyn office, while continuing to serve its Israeli customer base.

Installed Building Products, Inc. (IBP) has acquired Surface Purveyors, LLC, which does business as Lynch Insulation, adding approximately $5 million of annual revenue. The acquisition expands IBP's presence in Montana, with Lynch operating locations in Missoula and Hamilton and specializing in fiberglass and spray foam insulation for residential, multifamily, and commercial projects.

City Rise Safety and BATS Traffic Solutions have merged to form Northern California's largest full-service traffic control provider, combining more than 500 traffic technicians. Boston-based private equity firm Lineage Capital made a minority investment to facilitate the combination and support future growth.

Rotunda Capital Partners has made its first investment from Fund III in U.S. Waterproofing, a Chicagoland residential basement waterproofing and foundation repair provider. Founder/owner Matt Stock will remain CEO as Rotunda backs the company’s organic growth and plans to deploy an acquisition (roll-up) strategy to expand the platform nationally.

Tenex Capital Management has made an investment in Rose Paving LLC, a Bridgeview, Illinois-based national provider of parking lot maintenance and rehabilitation services. The investment is intended to accelerate Rose's growth — both organically and via acquisitions — by providing capital and operational support.

SageHome, a Cairngorm Capital portfolio company, has acquired Midwest Bath Company LLC, a bathroom remodeling specialist headquartered in Moline, Illinois. The add-on strengthens SageHome's Smart Bath division and accelerates geographic expansion of its aging-in-place home modification platform across the United States.

Jackson Infrastructure Services (JIS), a KLH Capital–backed utility and infrastructure services platform headquartered in West Jordan, Utah, has acquired Victory Equity Construction (VECI), an underground telecommunications infrastructure contractor based in Missoula, Montana. The bolt-on expands JIS’s capacity and geographic footprint across the Mountain West and adds experienced field crews to serve growing rural fiber and utility demand.

Atlanta-based private equity firm Eagle Merchant Partners completed a majority equity investment in Eskola Roofing & Waterproofing, a commercial roofing and waterproofing contractor with locations in Tennessee and Kentucky. Founders Jon and Ben Eskola will remain in leadership roles and the partnership will support Eskola's expansion of services across the Southeast; Carl Franseen was named CFO as part of the transaction.

Synergos Companies acquired Focus Companies on October 31, 2022, expanding its vertically coordinated construction services platform into the Las Vegas market. Focus Companies — the largest construction company in Las Vegas — brings capabilities in concrete, plumbing, electric, framing and fire protection to accelerate Synergos’ ‘super supplier’ model and broaden product diversity for builder and developer customers.

Tecum Capital Management, through its Tecum Equity control strategy, has acquired J&D Home Improvement, Inc. d/b/a The Basement Doctor with strategic support from Centerfield Capital Partners, BPEA, and Crane Group. The investment establishes The Basement Doctor as Tecum's platform to expand regionally and nationally across residential waterproofing, foundation repair, and mold remediation services.

Atlantic Southern Paving & Sealcoating, a Fort Lauderdale-based commercial paving platform backed by Harbor Beach Capital and Aldine Capital Partners, has completed add-on acquisitions of Paradise Asphalt Maintenance (Grandview, Missouri) and Massey Asphalt Paving (Trussville, Alabama). The transactions expand Atlantic Southern’s geographic footprint in the Midwest and Southeast as part of a broader roll-up strategy to consolidate pavement maintenance and commercial paving services.

Apple Roofing, a Plano-based roofing platform backed by Gauge Capital, has acquired Plymouth, Minnesota–based NMC Exteriors. The add-on expands Apple Roofing's footprint and capabilities in the Upper Midwest, adding residential and commercial insurance restoration services and the NMC leadership team.

Dalrada Financial Corporation (Dalrada) has acquired Bothof Brothers Construction, a San Diego County-based high-end construction firm, effective October 7, 2022. The transaction expands Dalrada’s Energy Services division and enables the launch of a Commercial Construction Services division focused on energy-efficient building capabilities.

The Valcourt Group has acquired American National Skyline, Inc. (ANSI) to expand its exterior building services footprint into the Midwest. The deal brings ANSI's window cleaning, waterproofing and exterior maintenance capabilities into Valcourt's national platform and strengthens Valcourt's service offerings across more states.

Riverbend Sandler Pools, a Plano-based pool construction and service platform and portfolio company of Concentric Equity Partners, has acquired Backyard Paradise Luxury Pools, a Montgomery, Texas provider of residential and commercial pool construction, remodeling, repair and maintenance. The deal is an add-on acquisition that expands the Riverbend platform's presence into the Houston market; Backyard Paradise's owner Mitchell Buckley will remain in a leadership role and retain an ownership stake.

GNI Management Group Inc., an Ironbridge Equity Partners portfolio company, has acquired St-Esprit-based insulation contractor Isolation Majeau et frère inc. The add-on expands GNI's footprint into Quebec (its first expansion beyond Ontario) and aims to broaden IMF's capabilities and service coverage in the Greater Montreal region; financial terms were not disclosed.

ReVamp Companies, a platform portfolio company of Bertram Capital, has acquired Apollo Concrete Coatings, a residential concrete coatings installer operating in the Buffalo/Rochester, NY area and recently in Pittsburgh. The add-on expands ReVamp's footprint in the Northeast U.S.; terms were not disclosed.

Legacy Restoration, a portfolio company of Bessemer Investors, has reached a definitive agreement to merge with Janney Roofing, an Orlando-based exterior restoration and roofing specialist. The transaction expands Legacy's geographic footprint into Florida and adds Janney's retail re-roofing and marketing capabilities to Legacy's platform; debt financing was provided by Tree Line Capital Partners and Bridge Bank (Western Alliance Bank).

Spectra Contract Flooring, a Diverzify company, has acquired ReSource Colorado, a long-standing Denver-area commercial flooring contractor. The add-on expands Spectra/Diverzify's regional footprint in Colorado and brings ReSource Colorado's installation and product-care capabilities into the platform.

Generational Equity advised the sale of TTARP Investments, Inc. (d/b/a Pratt Homes), a Tyler, Texas-based modular and manufactured home dealership, to a private investor. The transaction closed on September 15, 2022, completing an owner succession/exit by Lynn Pratt.

The Cranemere Group has partnered with System Pavers, a Santa Ana–based direct-to-consumer outdoor living design and installation company. The transaction provides System Pavers with permanent capital to support geographic expansion and an expanded product offering while founders and management retain a significant ownership stake.

Stonehenge Partners’ pavement maintenance platform, True North Asphalt, acquired Orion Construction Company as an add‑on to expand its paving maintenance and parking lot services footprint in Michigan. The deal strengthens True North’s service offering across commercial, municipal and residential end markets as the platform continues to pursue further add‑on acquisitions.

Palatine has acquired a majority stake in Staffordshire-based housebuilder Jessup, backing the company's growth plans and appointing industry veterans Chris Beighton (Chairman) and Matt Moore (CEO). Jessup, a 92-strong developer and development manager delivering ~500 homes per year to local authorities and registered providers, will use the investment to expand into the East Midlands and accelerate its MMC and brownfield development capabilities.

Endeavor Fire Protection, a platform of private equity firm Building Industry Partners (BIP), has acquired Allegiant Fire Protection. The acquisition expands Endeavor's service capabilities into 24/7 monitoring, testing and inspection of fire suppression systems and into the design and installation of fire alarm systems, while strengthening its presence in the Greater Chicagoland and Midwest markets.

H.I.G. Capital, through an affiliate, has acquired CPS Building Services Limited, a Cambridgeshire-based mechanical and electrical (M&E) installation and maintenance provider, from its founder; CPS' managing director Liam Connelly will reinvest and the existing management team will remain in place. H.I.G. plans to use CPS as the core of a technical building services platform and pursue add-on acquisitions to expand capabilities in fire protection, lifts, water & pumps, access and security, and compliance services.

Pacific Bath Company, part of the Renuity portfolio owned by Titan Holdings, has acquired Illinois-based Home Forever Baths. The add-on deal (closed August 1) brings Renuity/Pacific Bath into the Chicagoland market while Home Forever will continue to operate as an independent consumer-facing brand under existing leadership.

Capital Construction Holdings, a portfolio company of O2 Investment Partners, has partnered with Options Exteriors, a residential roof replacement and repair provider headquartered in Eden Prairie, Minnesota. The deal is an add-on to the Capital Construction Holdings platform intended to expand the platform's Midwest footprint and strengthen its residential roofing capabilities and sales engine.

Ambassador Supply, an investment and holding company focused on building-industry roll-ups, has acquired Astro Buildings, a post-frame builder based in Mead, Nebraska. The deal is an add-on to Ambassador's existing portfolio and is intended to expand geographic coverage and create operational synergies in the Iowa–Nebraska agricultural market.

Building Industry Partners (BIP) has formed a new fire and life safety platform, Endeavor Fire Protection, through its acquisition and recapitalization of Valley Fire Protection Systems. Valley, founded in 1974, will continue to be led by its existing management team and provides fire sprinkler, fire suppression and plumbing installation, service and inspection across the Midwest.

Alimak Group acquired Tall Crane Equipment Ltd., a Langley, British Columbia-based licensed elevator contractor and crane/hoist rental provider. The transaction closed on August 24, 2022 and expands Alimak Group's construction division and its footprint in Canada to provide rental, parts and service capabilities.

Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) completed the all-cash acquisition of Coastal Carolina Pumping, Inc., the largest concrete pumping service provider in the Carolinas, adding 89 units of operating equipment and expanding CPH’s footprint in North Carolina, South Carolina and Central Florida. The transaction was funded from existing debt facilities and operational free cash flow and is intended to increase service capacity, expand fleet availability, and provide Coastal customers access to CPH’s Eco‑Pan concrete waste management services.

Anser Advisory, a portfolio company of Sterling Investment Partners, has merged with LaFata Contract Services (LCS), a King of Prussia, Pennsylvania-based utility project and construction management firm. As part of the transaction IMB Partners exited its investment in LCS; the combination creates a national utility services platform of roughly 1,100 employees and strengthens Anser's capabilities and geographic presence for grid modernization and clean-energy projects.

ARCXIS, a Houston-based national provider of inspection, engineering and energy-efficiency services and majority-owned by Saw Mill Capital, completed five add-on acquisitions in 2022: iPermit (Westlake Village, CA), Jacksonville Building Science (Florida), and three affiliated Oklahoma-based providers — The Energy Rangers, Energy Savers, and Greensmart Solutions. The deals expand ARCXIS' geographic footprint and service capabilities in permit expediting, HERS/energy ratings and inspection/testing services for residential homebuilders and existing-home markets.

Blackmon Mooring & BMS CAT (BMS CAT) has acquired Highland Construction, adding Highland’s three eastern North Carolina locations (Fayetteville, Raleigh and Wilmington) to BMS CAT’s existing North Carolina footprint. The acquisition expands BMS CAT’s restoration and reconstruction capabilities in the state and brings Highland’s residential and commercial mitigation and reconstruction expertise into the combined platform.

Tecta America, the national commercial roofing leader, has acquired Mahaney Group, a Wichita, Kansas-based commercial roofing, sheet metal and structural steel services provider. The Mahaney management team, led by Mark Bolt, will remain in place and the operation will be known as Mahaney, a Tecta America Company.

FLEET Response, a Trinity Hunt Partners portfolio company, completed three add-on acquisitions — Dalworth Restoration, Cousino Restoration, and RestorePro Reconstruction — expanding its regional hubs across the U.S. Monroe Capital arranged a senior credit facility to fund the add-ons and provide growth capital for FLEET Response. RestorePro was advised by FourBridges and its prior investor Sovereign's Capital was a significant exiting shareholder.