VSS has closed its minority investment in Crowley, Texas-based Powerhouse, a provider of nationwide construction services, facilities upkeep and retail store rollouts to businesses and customers in the facilities services market. No financial terms were disclosed for the transaction that was done in connection with Lincolnshire Management‘s acquisition of Powerhouse.
NEW YORK – OCTOBER 17, 2019 – Private investment firm VSS today announced that it has completed a minority investment in Powerhouse (“the Company”), a tech-enabled provider of refresh, remodeling and facilities maintenance services, in connection with Lincolnshire Management, Inc.’s acquisition of the Company. Financial terms of the private transaction were not disclosed.
The transaction aligns with VSS’ focus on investing in tech-enabled and high-demand businesses and growth sectors for the economy, including business service companies.
Headquartered in Crowley, Texas, Powerhouse provides nationwide construction services, facilities upkeep, retail store rollouts to a wide range of businesses and established customers in the $600 billion facilities services market. Founded in 1996, the rapidly-growing Company has more than 350 employees who service the commercial real estate, convenience stores, financial services, grocery and convenience food shopping, healthcare, hospitality, restaurant, retail and telecommunications industries.
“Powerhouse is a differentiated tech-enabled company with an excellent blue-chip client base, high growth potential and a strong management team. It’s a high quality asset-lite company with a very small share of a multi-billion dollar market,” said Patrick Turner, Managing Director at VSS. “We were delighted to be able to team up with the partners at Lincolnshire Management, and together we look forward to supporting its future growth, both operationally and through strategic acquisitions.”
In connection with VSS’ investment, Lincolnshire also acquired Securities Vault Works, Inc. (“SVW”), one of the nation’s largest installers of self-service kiosks and automated teller machines, with a co-investment to form a new platform company. Together with SVW, the combined business will employ over 650 workers and have access to a nationwide network of more than 13,000 subcontractors.
“We’re pleased to have the support of VSS, which brings a strong track record of supporting private equity sponsored-transactions with flexible capital solutions that drive growth,” said T.J. Maloney, Chairman and CEO of Lincolnshire Management. “Powerhouse and SVW have unique but complementary offerings, backed by strong management teams. We look forward to helping these highly scalable, tech-enabled companies grow, reach more customers and develop more services,"
As part of the deal, VSS will have board observer rights. The transaction represents the firm’s ninth platform investment from its VSS Structured Capital III fund.
VSS is a private investment firm that invests in the information, education, healthcare, and tech- enabled business services industries. VSS provides capital for growth financings, recapitalizations, strategic acquisitions, and buyouts to lower middle market companies and management teams with the goal of building companies organically as well as through a focused add-on acquisition program. VSS makes privately-negotiated investments across the capital structure and invests in situations requiring control or non-control equity, mezzanine securities, and structured equity securities. For more information, please visit: www.vss.com.
Powerhouse is a leading, nationwide provider of high-volume, multi-site rollouts and refreshes, as well as recurrent facilities maintenance services. The majority of Powerhouse's work is outsourced to a network of over 10,000 independent subcontractors, and delivered through a tech-enabled, asset-light platform. Powerhouse has primarily served customers in the food service, retail, and hospitality segments and is expanding in the financial and healthcare sector. For more information: www. https://powerhousenow.com/.