Acacia Partners has acquired Questco Companies. Questco is a professional employment organizations based in in Texas.
Acacia Partners, an Austin, Texas based investment firm, recently completed the acquisition of Questco Companies (“Questco”). Questco is one of the largest Professional Employment Organizations (“PEO”) in Texas. Acacia and its long-term oriented partners, including ORIX Mezzanine & Private Equity and several family offices, teamed with Ben August, Questco’s CEO, to acquire the Company. Mr. August will maintain significant ownership in Questco and continue to execute and expand on the company’s leading customer service offering and growth strategy.
Questco was founded in 1990 and is headquartered in Conroe, TX. Through a co-employment relationship, Questco provides small and medium size businesses with a cost-effective and comprehensive outsourcing solution for administering human resources. These services include payroll, employee benefits, workers compensation, and management of other compliance responsibilities of employment. By offering clients the scale of a large employer, Questco provides small businesses with capabilities and buying power that they could not achieve on their own.
“Acacia is thrilled to partner with Ben and his team. The PEO industry has a compelling value proposition that is clearly underutilized by its target market. I expect Questco to continue increasing its leadership position in this thriving industry.” commented Brad Johl, Partner of Acacia.
Ben August, Questco’s CEO remarked, “I am excited to partner with Acacia and continue to expand the quality of our service offering to clients. I found Acacia’s differentiated business model, partner-like approach and long-term capital base to be an attractive solution for my needs.
Acacia partnered with Cadence Bank to provide the Senior Credit Facility and used Roetzel Andress for legal representation. The Company’s investment banking advisor was Cross Keys Capital and legal counsel was Ewing & Jones.
Questco, founded in 1990, is a Professional Employer Organization (“PEO”) headquartered in Conroe, TX. A PEO provides human resource management and administrative services through a co-employment relationship with its clients. Questco enables its clients to cost-effectively outsource the management of employee benefits, workers compensation, human resources, payroll, and other administrative services. For more information on Questco, please visit www.questco.net.
About Acacia Partners:
Acacia Partners is a Texas based private investment firm that invests in lower-middle-market companies seeking capital ranging from $10 million to $50 million. Unlike traditional investment firms, Acacia does not have a fixed investment mandate. We have a high degree of flexibility regarding investment structure and time horizon. Acacia invests in both debt and equity and even has the ability to hold investments indefinitely.
We offer a compelling proposition to lower middle market entrepreneurs, operators and family owned/operated businesses seeking capital, including:
• Patient, long-term capital aligned with your company’s long-term objectives
• Structurally agnostic capital solutions to address your company’s specific needs
• Access to a vast network of family office contacts to drive growth opportunities and operational excellence
For more information on Acacia Partners, please visit www.acaciapartnersllc.com.
About ORIX Mezzanine & Private Equity:
ORIX Mezzanine & Private Equity, a business unit of Dallas-based ORIX USA, provides mezzanine debt and/or private equity capital to lower middle market and middle market companies throughout the United States. Investments of $5-25 million are made in a variety of businesses and geographic areas for buyouts, mergers and acquisitions, recapitalizations and refinancings, and growth and expansion situations. Investments are with companies owned by equity sponsor groups, companies with fundless sponsor involvement, family-owned companies, and directly with management teams.
If you are interested in learning more about ORIX’s value-added mezzanine and private equity products, please contact Jeff Sangalis at 214.237.2059 or visit www.orixmezzanine.com or www.orixmpe.com.