PAG Capital Partners has acquired a majority stake in Corporate Technology Solutions LLC, a provider of low-voltage structured cabling installation services in Arizona. No financial terms were disclosed. CTS was advised by The March Group.
The March Group, a leading, private mergers and acquisitions firm specializing in the sale of middle-market businesses, announced today that PAG Capital Partners, LLC, a private equity firm, has taken a majority stake in Corporate Technology Solutions, LLC (CTS), a client of The March Group.
“It was extremely satisfying to complete a transaction that was clearly a win-win for the buyer and seller,” said The March Group’s Vice President of Capital Markets Mike Meredith, who arranged the transaction. “PAG has taken a majority stake in a company that has been able to expand revenue and EBITDA in a difficult economic environment and has excellent prospects for continued growth in the future.”
In conjunction with the transaction, Wes Dearbaugh joined CTS as Chairman and Chief Executive Officer. Mr. Dearbaugh, a PAG Operating Partner and formerly president and chief operating officer of several private and public companies, has over 30 years of experience leading and growing companies. Brian Rhynas and Scott Tubbs will remain in their current roles.
“We wanted to move to the next level in developing the business, and by arranging this deal, The March Group helped us make that move,” stated Brian Rhynas, President of CTS, said. “We’re very excited about our partnership with PAG and the opportunity to have an executive of Wes Dearbaugh’s caliber join our team. The addition of Wes as CEO together with PAG’s financial and operating support will enable CTS to capitalize on the many organic growth and acquisition opportunities that are available in our region.”
Stephen Sleigh, Partner at PAG, said, “Our investment in CTS is consistent with PAG’s objectives of identifying middle-market companies with untapped potential and supporting them with additional management and financial resources. Brian Rhynas and Scott Tubbs have built an excellent company, and we are looking forward to working with them to continue CTS’ reputation of excellent customer service and best-in-class installation services and to expand its geographic footprint.”
Alex Fridman, Partner at PAG, said “The March Group was instrumental in introducing the deal to us and served as an effective intermediary in our deal negotiations.”
PAG is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of lower middle-market companies in partnership with management. For additional information about PAG, please refer to the firm’s Web site at www.pagcapital.com.
Established in 1998 and headquartered in Tempe, Arizona, CTS has grown to become a leading provider of low-voltage structured cabling installation services in Arizona. CTS achieved record performance in 2008 and has continued that success in 2009 by focusing on providing high-quality design and installation services to its customers and partnering with leading integrated cabling manufacturers and suppliers to deliver the best solutions to its customers. For additional information about CTS, please visit the Company’s website at www.ctscabling.com.
About The March Group
Founded in 1986, The March Group is headquartered in Coral Springs, Florida, and has offices throughout the United States and worldwide. The company employs over 200 professionals and has built a dynamic network of business contacts all over the globe. The March Group specializes in the marketing, negotiation and sale of privately held middle-market businesses. The March Group has successfully helped hundreds of business owners sell their companies by connecting them with buyers.