Amteck, a portfolio company of Trive Capital, has acquired South Carolina-based Communication Management Inc, a provider of structured cabling networks and turn-key hardware solutions for non-residential clients. No financial terms were disclosed. Also, Amtek has secured a new term loan led by Tennebaum Capital Partners. The capital will be used to repay its existing debt, pay a dividend to Trive Capital, and for working capital and general corporate purposes.
Amteck (the “Company”), a national provider of design/build electrical contracting services targeting a diverse mix of greenfield- and expansion-related non-residential construction projects, announced today the acquisition of Communication Management, Inc. (“CMI”), a South Carolina-based designer and installer of high-performance, structured cabling networks and turn-key hardware solutions for non-residential clients. Amteck has worked closely with CMI on several projects and has been impressed by their best-in-class capabilities and talented employees.
Amteck also announced it has entered a new credit facility (“term loan”) led by Tennenbaum Capital Partners (“TCP”) and will use the proceeds along with its operating cash flows to repay its existing debt, pay a dividend to Trive Capital, and for working capital and general corporate purposes. Additionally, the term loan provides an accordion feature that will allow Amteck to execute on its accretive acquisition strategy. FocalPoint advised Amteck on the transaction.
Amteck Chief Executive Officer Daren Turner said, “CMI is a perfect example of an exceptional business that brings incredible opportunity to expand our technologies service offering. We are excited about this transaction and other opportunities we will be able to pursue with the support of TCP, a highly experienced lender in our industry.”
“The strong feedback from the lending community and ability to complete a dividend recapitalization confirms the significant progress we have made with Amteck since our investment in 2015,” commented Conner Searcy, Managing Partner of Trive.
Trive Managing Director Desmond Henry added, “This financing provides Amteck with capital to bolster its acquisition strategy, demonstrates the strength of the Company’s management team, and marks an important step in the investment timeline for Trive. Amteck has a long history of finding exceptional talent and value in acquiring complementary businesses, like CMI, and this financing gives us significant runway to continue to pursue this successful growth strategy.”
Amteck, headquartered in Lexington, Kentucky, is a national provider of design build electrical contracting services targeting a diverse mix of greenfield- and expansion-related non-residential construction projects. Amteck supports the facility growth expansion initiatives of companies that operate in the manufacturing, food and beverage, commercial and institutional sectors. The Company’s service offerings include three distinct divisions: core electrical (inclusive of both design/build and plan spec work), special services (low voltage work), and service (troubleshooting and repair).
Tennenbaum Capital Partners, LLC (“TCP”) is an alternative investment management firm with approximately $9 billion of committed capital focused on direct lending and special situations for middle-market companies. TCP manages funds and accounts on behalf of global institutional investors. Since its founding in 1999, TCP has invested approximately $22 billion in over 560 companies. TCP is headquartered in Los Angeles with additional offices in Atlanta, New York and San Francisco. For more information, please visit: www.tennenbaumcapital.com
Trive Capital is a Dallas, Texas based private equity firm managing over $2 billion in capital. Trive focuses on investing in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas. The Trive team is comprised of seasoned investment professionals who have been involved in over 70 middle-market transactions representing in excess of $5 billion in revenue across Trive’s targeted industry sectors and situations.