HCI & Capstreet Complete Sale of OnPoint Industrial Services

 

HOUSTON, TX, November 29, 2022– HCI Equity Partners, a leading lower middle-market private equity firm, today announced the sale of OnPoint Industrial Services (“OnPoint” or the “Company”) with Capstreet to MML Capital on November 16, 2022. HCI portfolio company CertifiedSafety previously merged with OnPoint in March 2021 and HCI continued to be involved as a minority investor. Financial terms of the transaction were not disclosed.

OnPoint is a specialized provider of safety, logistics and planning services designed to support complex maintenance activities in the refining and petrochemical industries.  The combination of OnPoint and CertifiedSafety established a premier provider of industrial safety, logistics and turnaround management services in North America.

Dan Dickinson, HCI’s Managing Partner commented, “Merging CertifiedSafety with OnPoint was a pivotal moment for the two companies to become a leading provider of support services for industrial safety projects. OnPoint’s management team were great leaders for the combined Company and we look forward to watching them succeed with MML.”

BlackArch Partners was the financial advisor to Capstreet.

About OnPoint Industrial Services
OnPoint Industrial Services’ offerings are designed to facilitate the safe and efficient flow of people, materials, and equipment during turnarounds and capital projects. By applying people, process, and technology, OnPoint satisfies the logistics requirement of these complex events. For more information, visit onpoint-us.com.

Tech24 Completes Fourteenth Add-on Acquisition

GREENVILLE, S.C., October 12, 2022—Tech24, backed by HCI Equity Partners, today announced that it acquired TEK Express (the “Company”) on October 7, 2022. Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment. TEK Express is Tech24’s fourteenth add-on acquisition in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

Based in Lynbrook, New York, TEK Express is a provider of repair services, preventative maintenance and installation for commercial cooking and refrigeration equipment, servicing commercial kitchens in schools, institutions, hospitals and restaurants throughout New York City. This acquisition further expands Tech24’s growing density, adding meaningful scale in New York City, the largest metropolitan area in the country.

Tech24’s CEO Dan Rodstrom, said, “We are excited to add TEK Express to the rapidly growing Tech24 family. Expanding our presence in the New York City market was a top priority for Tech24 and TEK Express will be an ideal partner to help us establish a leading market share in the region.”

“We’re extremely proud of what HCI and Tech24 have achieved,” said Doug McCormick, Managing Partner at HCI. “Through 14 add-on acquisitions since our initial investment in 2020, HCI’s consolidation strategy has succeeded in transforming Tech24 into a dynamic platform for growth while continuing to improve our value proposition for our employees and customers alike.”

Quarles and Brady served as legal counsel to Tech24.

WASHINGTON, D.C. (Oct. 5, 2022) – HCI Equity Partners (“HCI”), a lower middle market private equity firm that partners with founder-owned distribution, manufacturing and B2B service companies, today announced it has been recognized by Inc. for the third consecutive year as a 2022 Top Founder-Friendly Investor. Inc.’s annual list recognizes private equity and venture capital firms that have the best track record of successfully backing entrepreneurs and remaining actively involved with the businesses they invest in.

“Through HCI’s partnerships with family- and founder-owned businesses, we apply our strategy and playbook to build not only bigger, but better and more diversified businesses. The result is businesses that benefit all constituents—investors, customers, management and employees,” said Doug McCormick, Managing Partner at HCI. “We are proud to be a resource for entrepreneurs to take their company or family business to the next level.”

Inc. compiled the 2022 list by selecting firms that entrepreneurs collaborate with and trust as they receive the financial support they need to help drive growth. Founders shared about their experiences with private equity firms with Inc. and data on how their companies grew during the partnership.

“HCI has been an extremely thoughtful and dedicated partner during their ownership of AmerCareRoyal. We have grown from a regional distribution company offering one product to a market leader in the US with a national fulfillment capability, offering over 20 product lines,” said Scott Milberg, CEO of AmerCareRoyal. “We’ve experienced explosive growth, completing 7 add-on acquisitions and growing revenues over 2000% since partnering with HCI. I’m proud my family and I chose HCI, which has guided us to where we are today.”

“We are honored to receive this award for the third year in a row in recognition of HCI’s strategy of supporting entrepreneurs, especially because the evaluation included interviewing our portfolio companies’ founders.” said Dan Dickinson, HCI Managing Partner. “We understand their needs because over 90% of our current platform investments have been with founder and family-owned businesses. We look forward to continuing to support our founders and finding new entrepreneurs who are ready to achieve their next stage of growth.”

 

 

 

Disclaimer:

Inc. Magazine’s Founder-Friendly Investors is a published list of U.S. founder-friendly private equity firms. HCI has paid a fee to be considered for this recognition. Private equity firms that have exited U.S.-based, founder-led, public or private, portfolio companies within the past five years were eligible to apply. This recognition is based on the analysis of and information gathered by Inc. Magazine using its own criteria and methodologies. As part of the vetting process, Inc. Magazine interviewed one or more portfolio company representatives about their experience partnering with HCI. For investments to qualify, portfolio company founders must have remained actively involved in their business for at least one year post-investment. The complete list of private equity firms considered for this award is not known to HCI. The award reflects information about a sample of portfolio companies and may not be representative of every portfolio company’s experience with HCI. There is no guarantee that similar awards will be obtained by HCI in the future. Portfolio companies should make their own determinations about the prospects of partnering with HCI.

Tech24 Completes Thirteenth Add-on Acquisition

GREENVILLE, S.C., October 3, 2022—Tech24, backed by HCI Equity Partners, today announced that it acquired 1^st Source Restaurant Services (“1^st Source” or the “Company”) on September 29, 2022. Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment. 1^st Source is Tech24’s thirteenth add-on acquisition in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

Based in Lewisville, Texas, 1^st Source is a provider of repair services, preventative maintenance, and installation for foodservice, refrigeration equipment, HVAC and plumbing. The Company services restaurants, hotels, religious establishments, country clubs and convenience stores in the Dallas-Fort Worth area, San Antonio and Arkansas.  The acquisition provides Tech24 with increased coverage in Texas, which is a strategic priority for the Company, and a strong, experienced team led by CEO Travis Fogle.

Tech24’s CEO Dan Rodstrom, said, “We are very pleased to add 1^st Source to the Tech24 family. They come with a great reputation for service and established presence in the burgeoning Dallas-Fort Worth market. We are excited to work alongside Travis Fogle and the entire 1^st Source team as part of the broader Tech24 organization.”

“1^st Source is our thirteenth acquisition in just over two years and validates the value proposition we offer to entrepreneurs looking for a value-added strategic partner,” said Doug McCormick, Managing Partner at HCI. “Entering the fast-growing Dallas market is an exciting expansion for the Tech24 platform and HCI looks forward to supporting the combined company.”

Quarles and Brady served as legal counsel to Tech24.

Tech24 Completes Twelfth Add-on Acquisition

GREENVILLE, S.C., September 27, 2022—Tech24, backed by HCI Equity Partners, today announced that it acquired Allied Service Group (“Allied” or the “Company”) on September 23, 2022. Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment. Allied is Tech24’s twelfth add-on acquisition in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

Allied is a provider of repair services, preventative maintenance and installation for foodservice and HVAC equipment, servicing restaurants, grocery stores and institutions in Southwest Tennessee and Northern Mississippi. The acquisition provides Tech24 with an additional entry point into the Southeastern U.S. as Allied’s headquarters in Jackson, Tennessee, are near growing metropolitan areas, including Memphis, Nashville, Knoxville and Chattanooga.

Dan Rodstrom, CEO of Tech24, said, “We are excited to welcome Allied Service Group to the Tech24 family. Joe Lasley, President of Allied, has built an outstanding team in Mississippi and Tennessee, and we look forward to working alongside them as Tech24 expands its operations further in the Southeast.”

“The Tech24 platform is a great example of how HCI’s investment strategy works to benefit new and existing customers with expanded services and greater efficiencies, through strategic acquisitions in fragmented markets,” said Doug McCormick, Managing Partner at HCI. “Tech24 and HCI are experiencing strong success partnering with high quality family- and founder-owned businesses across the U.S., and we are proud of the teams and business we are building.”

Quarles and Brady served as legal counsel to Tech24.

 

About Tech24

Tech24 provides installation, preventative maintenance, and repair for foodservice facilities across the US. The Company specializes in cooking, refrigeration, beverage, and specialty foodservice equipment, as well as performs HVAC, electrical, and plumbing services. For more information, please visit www.mytech24.com.

HCI Co-Founder, Managing Partner and Chief Investment Officer, Doug McCormick, recently joined Sean Mooney, CEO of Bluwave, LP, on his brand new podcast, the Karma School of Business. Listen in to hear Doug and Sean discuss building world-class teams and scaling leadership along with your business and company culture, plus how HCI helps entrepreneurs realize their vision for growth. You’ll also hear why Doug firmly believes that, at the end of the day, good values and work ethic win.

WASHINGTON, DC, August 29, 2022 – HCI Equity Partners (“HCI”), a lower middle market private equity firm that partners with founder-owned distribution, manufacturing and B2B service companies, announced today the promotions of Lisa Costello to Chief Administrative Officer (“CAO”), a newly created position, and Managing Director, and Amy Stremmel to Chief Financial Officer (“CFO”).

Lisa Costello, CAO, joined HCI in 2004 and will continue to serve as the firm’s Chief Compliance Officer. As CAO, she will lead HCI’s administrative and compliance operations and play a key leadership role within the firm. Prior to this role, Lisa served as HCI’s CFO for more than a decade and has been a member of the Board of Directors of the Washington Chapter of the Private Equity CFO Association for several years.  Before joining HCI, Lisa was a senior accountant for The NHP Foundation and a senior auditor at CohnReznick.

Amy Stremmel, CFO, joined HCI in 2005, and has played an integral role on the finance team, managing the firm’s accounting functions and assisting with SEC compliance and partnership reporting. As CFO, she will be an advisor to HCI’s funds for transaction and tax related issues, lead the firm’s partnership with Gen II Fund Services and continue working with the CAO on partnership reporting and compliance. Prior to joining HCI, Amy was a senior auditor at Ernst & Young.

Peggy Espejo, Finance Specialist, was also promoted to Office Manager, a newly created position, in addition to her responsibilities as part of the finance team. She has been with HCI since 2008.

“These promotions recognize Lisa, Amy and Peggy’s significant and evolving contributions to the success of HCI,” said Doug McCormick, Managing Partner at HCI. “Each of these individuals embody our team’s ethos and commitment to a “people-first” culture. We are thrilled to recognize their immense contributions, hard work and achievements during their long tenures with the firm.”

Dan Dickinson, Managing Partner at HCI, added, “HCI is fortunate to have such committed team members like Lisa, Amy and Peggy. We know the firm’s success is dependent on the quality of our people, and we look forward to their future contributions as HCI continues to grow.”

Tech24 Completes Tenth & Eleventh Add-on Acquisitions

GREENVILLE, S.C., August 26, 2022—Tech24, backed by HCI Equity Partners, today announced that it acquired Americold and Arrowhead Commercial Equipment (“Arrowhead”) on August 19, 2022, and August 10, 2022, respectively. Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment. Arrowhead and Americold represent Tech24’s tenth and eleventh add-on acquisitions in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

AmeriCold

AmeriCold is a leading provider of cold-side repair and installation services to customers in the New York metro area, Washington DC, and Southeast Florida.  The company has a wide range of customers across the restaurant, grocery store, and institutional end markets, from New York City’s premier restaurants and hotels to fast-casual dining facilities, hospitals, and universities. This acquisition expands the Tech24 platform’s cold side refrigeration services and increases its market share in key MSAs.

Arrowhead

Based in Phoenix, Arizona, Arrowhead is a provider of repair services, preventative maintenance, and installation for foodservice and refrigeration equipment. Arrowhead provides both hot and cold-side service for customer segments including restaurants, grocery stores, country clubs and senior care facilities. The acquisition increases Tech24’s market share in the fast-growing Phoenix market and brings a talented team and technicians experienced in all types of equipment.

Tech24’s CEO Dan Rodstrom, said, “We are excited to welcome both Americold and Arrowhead to the Tech24 organization. AmeriCold brings valuable scale and cold-side service exposure to the large New York market.  Arrowhead helps us improve density and diversification in the fast-growing Phoenix market.  Both companies come with a long history of strong performance, with accomplished leaders who are excited to develop future growth opportunities for their respective businesses.”

“We are very proud of Tech24’s continued ability to partner with great companies that expand the broader organization’s service areas and customer base,” said Doug McCormick, Managing Partner at HCI. “The pace of acquisitions completed is a testament to the team we have built at Tech24, and we look forward to continue supporting them in their M&A strategy.”

Quarles and Brady served as legal counsel to Tech24.

 

About Tech24

Tech24 provides installation, preventative maintenance, and repair for foodservice facilities across the US. The Company specializes in cooking, refrigeration, beverage, and specialty foodservice equipment, as well as performs HVAC, electrical, and plumbing services. For more information, please visit www.mytech24.com.

HCI Co-Founder, Managing Partner and Chief Investment Officer, Doug McCormick, recently joined Jeff Henningsen, President and Partner at Lockton Companies Houston on his popular podcast, Northstar’s Private Equity Fast Pitch. Listen in to hear how Doug’s lessons learned at West Point and in the military have made him a successful private equity partner, the key ingredient that separates winners and losers in a macro-economic downturn, how enjoying yourself becomes a key competitive advantage in business and why his kids named him “the fortune cookie” for his adages. He talks about how he strives for excellence while still enjoying the journey—Doug really loves working and leading the team at HCI!  You’ll also learn what his advice is for young people trying to enter the private equity industry, the value of branding yourself and what he thinks makes HCI such a great place to work.

WASHINGTON, DC, August 17, 2022 – HCI Equity Partners, a leading lower-middle-market private equity firm, today announced that three of their portfolio companies have been featured on Inc. 5000’s 2022 list of fastest growing companies. The recognized platforms include MSI Express. Inc, AmerCareRoyal, and WF Cabinetry.  Inc. 5000 is the most prestigious ranking of the fastest-growing private companies in North America posting average median growth for the three years ending 2020 of 230%. Together, those companies also added more than 1.1 million jobs over the past three years.

MSI Express is a leading contract manufacturer and packager focused on shelf-stable foods. MSI offers one of the broadest service and packaging offerings in the market to include dry mixing and blending, flexible pouches and sachets, liquid blending, and filling, stand cap pouching, canister filling, lidding, cup filling and pet food filling. Through three transformational acquisitions and significant organic growth, MSI’s revenue has increased 1018%, while their employment increased 81% from 2018-2021.

AmerCareRoyal is a leading supplier of disposable products for the foodservice, janitorial and healthcare markets in North America. With an established national footprint, the Company sells over 6,000 disposable items to a diverse customer base consisting of foodservice distributors, restaurant chains and other retail establishments. AmerCareRoyal’s revenue grew 99% from 2018 to 2021 through a combination of acquisitions and organic growth initiatives, while their employment increased 102%.

WF Cabinetry is a designer and manufacturer of semi-custom kitchen and bath cabinets.  The Company sells to the single-family residential market through a broad network of independent dealers across the U.S. and offers a wide variety of door styles, colors, and customizations options while delivering superior quality and construction to its customers. WF’s revenue grew 139% from 2018 to 2021, and their employment increased 142%.

“We are thrilled that over 20% of HCI’s platforms have been recognized by Inc. for delivering this impressive growth,” stated Doug McCormick, Managing Partner and CIO of HCI Equity Partners. “This is the second consecutive year these companies have been recognized by Inc. 5000 which is a testament not only to the contributions of our leaders and employees at these companies, but also the consistent impact of HCI’s engagement model to drive transformational growth through team building and M&A.”

“HCI is honored to partner with these three companies, along with the rest of our portfolio, and play a role in helping them grow exponentially through acquisition and organic investment,” commented Dan Dickinson, Managing Partner of HCI Equity Partners. “We are proud of the work these teams have accomplished and look forward to continue supporting the entire portfolio with their growth journeys.”

To view the full list of winners and database, visit www.inc.com/inc5000.