Soundcore Capital Partners LLC has acquired Nashville-based Sweeping Corporation of America Inc, a power sweeping company. No financial terms were disclosed. Kirkland & Ellis LLP advised Soundcore on the transaction.
NEW YORK, March 1, 2017 — Soundcore Capital Partners, LLC (“Soundcore”), a control-oriented, New York-based private equity firm that invests in lower middle market businesses, announced today that it has completed the acquisition, in partnership with management, of Sweeping Corporation of America, Inc. (“SCA”, “Sweeping Corp”, or “the Company”), the largest independent power sweeping company in the United States, as well as simultaneously closing on the platform’s first add-on, SCA’s sister company, Sani-Tech JetVac Services, LLC (“Sani-Tech”; together “Sweeping Corporation of America, Inc.,” “Sweeping Corp,” or “the Company.”) This is Soundcore’s third platform investment and eleventh add-on acquisition since the firm’s inception in March 2015. Terms of the private transaction were not disclosed.
Headquartered in Nashville, Tennessee, the Company has provided reliable, cost-effective street sweeping, catch basin cleaning & ancillary services to the Southeast region of the United States for nearly 30 years. With eight facilities strategically located throughout Tennessee, Alabama, Georgia, North Carolina, Kentucky, Arkansas, Mississippi, and Louisiana, SCA has become a reputable industry powerhouse responsible for maintaining over 25,000 miles of roadways and parking lots each month for states, municipalities, airports, as well as industrial, residential and commercial facilities.
“After defining the street sweeping space for our third platform investment, we developed a comprehensive thesis supported by proprietary industry knowledge we gained first-hand through our firm’s in-house cold calling efforts,” said Feliks Zarotsky, Managing Partner of Soundcore. “We spoke with many great companies before selecting Sweeping Corp as our third platform as well as its first add-on, Sani-Tech, both chosen for their strong operations and management.”
“We are extremely eager to join forces with both Sweeping Corp and Sani-Tech to build upon the strong success they have achieved to-date under the management of Tom Rice and his team,” said Jarrett Turner, Managing Partner of Soundcore. “The partnership solidifies our approach of pursuing healthy, need-to-have buy-and-build investments in highly-fragmented, niche markets. With the unlimited potential to expand into hundreds of smaller, local territories, our goal is to nurture and grow the Company, through multiple add-on acquisitions.”
“After founding this business 30 years ago, I am so grateful to reflect on the success we’ve achieved thus far, and I am excited for the future of the Company as it enters a new era.” said Founder Tom Rice. “Finding the right partners, who act with integrity, respect and passion, was crucial for me in taking the next step. I am excited to see Sweeping Corp continue to grow into a national leader in the street sweeping industry.”
Soundcore was advised by Kirkland & Ellis LLP.
About Soundcore Capital Partners:
Soundcore Capital Partners, founded in 2015, is a New York City-based private investment firm specializing in control equity investments and leveraged buyouts of lower middle market North American (US or Canada) headquartered businesses. The firm partners with exceptional management teams and creates long-term value for investors through a combination of operational improvements, internal growth initiatives, and strategic acquisitions. Soundcore primarily focuses on businesses with revenues that are recurring in nature and that are in fragmented industries with multiple acquisition roll-up opportunities. The firm specializes in proprietary deal sourcing through industry relationships and investment brokers rather than traditional bank auction processes, and seeks businesses whose management team members and / or selling shareholders wish to have a meaningful ownership stake in the newly acquired enterprise. Since inception, Soundcore has acquired 14 companies. For additional information on Soundcore Capital Partners, please visit www.soundcorecap.com
About Sweeping Corporation of America:
Since 1988, Sweeping Corp has provided street, parking lot and construction site sweeping, catch basin cleaning and several ancillary services including pavement maintenance and snow management to state, municipal, commercial, industrial and residential customers throughout the Southeast region of the United States. Servicing over 25,000 miles of roadways and parking lots each month across the states of Tennessee, Alabama, Georgia, North Carolina, Kentucky, Arkansas, Mississippi, and Louisiana, Sweeping Corp offers reliable, consistent and thorough service from highly-trained, certified technicians using state-of-the-art equipment. For more information, please visit www.sweepingcorp.com