Good morning dealmakers, thank goodness it’s Friday!
It’s Obey Martin Manayiti here with the Wire.
We will cap off the week today with a look at six private equity firms that are investing in the fire, safety and security sector, banking on some attractive characteristics in the industry.
We’ll close out with a Sole Source-backed Peak Technologies deal to acquire software company North Coast Technical.
Safety and security
The fire, safety and security sector has undergone strong consolidation recently via private equity-backed companies or as platform investments. Officials at PE firms and their portfolio companies say that the sector has attractive characteristics such as repeatable business models, high customer retention rates and nice growth prospects.
I detailed some of the PE firms involved, starting with the Chicago-based Wind Point Partners, which has completed 19 acquisitions since 2020 through its portfolio company Pavion.
Recent examples include two deals in August, one being the acquisition of RFI Enterprises, a San Jose, California-based security system supplier. Earlier this month, the company also acquired REECE Complete Security Solutions, a Portland, Oregon-based provider of security integration services for the data center, utility, healthcare and education markets.
In July, Pavion acquired K&J Integrated Systems, a Burlington, Massachusetts-based provider of low-voltage installation and support services for the commercial, distribution and higher-education sectors. In May the company acquired Premier Security Solutions, a California-based provider of commercial fire alarm, security and wireless transmission services.
Altus Fire and Life Safety, a company that is backed by AE Industrial Partners, in June acquired Priority Fire and Security, a Clinton, Massachusetts-based provider of design, installation, monitoring, maintenance and repair services for fire and security systems.
In May the company acquired Crime Intervention Alarm, a York, Pennsylvania-based provider of installation, monitoring, inspection and service for security and surveillance systems, access control and fire systems.
Formed in May 2021, Altus is a fire and life safety services platform. These two deals are the company’s eighth and ninth acquisitions.
Let’s get a Subway
Roark Capital on Thursday agreed to acquire the fast-food restaurant chain Subway for an undisclosed amount. (The Financial Times, citing two people with knowledge of the terms, puts the number at more than $9 billion.)
Founded in 1965, Subway is headquartered in Milford, Connecticut. The franchise has thousands of restaurants in more than 100 countries. It is mainly known for its sandwiches, wraps, salads and bowls.
“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” said John Chidsey, CEO of Subway. “Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees.”
And more food
Staying with the food theme, Hong Kong-headquartered PAG agreed to acquire a controlling stake in Australian Venue Co, a food and beverage hospitality business, from KKR.
AVC owns and operates a portfolio of more than 210 pubs, bars and restaurants across Australia and New Zealand. KKR invested in AVC in 2017.
Peak Technologies, which is backed by Sole Source Capital, has acquired Chesterland, Ohio-based North Coast Technical, a provider of machine vision hardware and image processing software for Fortune 500 companies along with small and medium-sized businesses.
Headquartered in Littleton, Massachusetts, Peak Technologies is a system integrator of digital supply chain, retail and mobile workforce solutions.
“North Coast’s vision capabilities strengthen the Peak Technologies portfolio, which is focused on machine vision and AI,” said Tony Rivers, CEO of PEAK Technologies, in a statement. “The vision technology provided by North Coast remains a highly attractive strategic solution across a wide range of industries used to improve quality control and traceability, meet compliance requirements, and reduce costs through improved efficiency.”
That’s it for me today.
MK Flynn will be back with the newsletter on Monday.
Have a nice weekend.