Surge Private Equity LLC has acquired Texas-based Norris Training Systems, a provider of training hosting services. Also, Busy Bee Cleaning Services LLC, which is backed by Surge, has acquired New York City-based Reyes Cleaning Services Corp. No financial terms were disclosed. And, Surge has named Thiago Farias as vice president.
DALLAS–(BUSINESS WIRE)–Surge Private Equity LLC (“Surge”) announces its acquisition of Texas’ Norris Training Systems Inc. (“Norris”) on 1/3/20 and Manhattan’s Reyes Cleaning Services Corp (“RCS”) on 12/31/19. In addition, Surge hires Thiago Farias as Vice President.
Operating for 30+ years, Norris provides training hosting services to over 2,500 clients across its five facilities in Houston, Austin, San Antonio, and newly launched Dallas. Norris has consistently dominated the Texas market through its exceptional focus on quality customer experience; boasting a 10% top-line CAGR over the past 14 years. The deal closed with financing from Modern Bank, N.A. (“Modern”); primary sellers David and Linda Norris retained a minority share and will remain on in their current capacity as operators.
Surge’s Busy Bee Cleaning Services LLC acquired regional competitor RCS to expand its footprint and improve upon the systems, policies, and procedures of RCS to further enhance quality and efficiency. Funding was extended by Harvest Capital Credit Corporation (NASDAQ: HCAP) to close the transaction.
With the addition of Norris, Surge now operates five platform investments with three add-on acquisitions. Thiago Farias is being hired to head up portfolio operations – traveling from company to company in an operationally focused capacity to assist in the growth and development of Surge’s holdings.
Surge Founding Partner Tom Beauchamp said, “We see opportunities to advance the systems and procedures of these quality businesses as well as supplement their organic expansion with M&A. Thiago will assist in implementing lean six sigma, integrating add-ons, and identifying and executing revenue growth in a hands-on capacity often neglected by private equity firms today.”
About Surge Private Equity
Surge Private Equity is a Dallas-based private equity firm that typically seeks majority investments in growing businesses with $2-7.5MM of EBITDA. Together with its lending partners, Surge provides entrepreneurs with liquidity and investors with higher yields and greater accessibility through lower investment minimums. Surge primarily invests in companies where the seller will remain on board in an ongoing capacity.
About Modern Bank
Modern Bank, N.A. is a privately owned, entrepreneurial bank that provides flexible, competitive and reliable senior debt financing solutions to commercial companies. Our experienced bankers specialize in working with lower middle-market companies and their owners to provide low-cost cash flow-based financing solutions. Whether expanding a business, acquiring a company, or financing a new product, clients have come to rely on our deep credit market and industry knowledge, and the ability to provide tailored solutions for a variety of credit-related needs.
About Harvest Capital Credit
Harvest Capital Credit Corporation is a publicly traded Business Development Company (NASDAQ: HCAP) that provides customized financing to small and midsized businesses located throughout North America. Our products include senior secured debt, unitranche term loans, junior secured term loans, subordinated debt investments, and minority equity co-investments.