Posts Categorized: Portfolio News

Mangrove Announces the Sale of Hi-Lite Airfield Services

  Hi-Lite Mangrove Equity Partners is pleased to announce the sale of Hi-Lite Airfield Services, LLC, a provider of specialized, mission-critical airfield maintenance services throughout North America and the Caribbean. Mangrove’s prior experience helping grow mission-critical service businesses was evident during our investment in Hi-Lite. Our four-man internal operating team worked collaboratively with Hi-Lite’s management team to build enduring value in the business, including by: • Facilitating the company’s successful carveout and transition from the prior parent and sister entity operations • Implementing and leading a strategic planning process focused on driving the vital few initiatives to build value, with the core theme of building a foundation and organizational infrastructure well-positioned for future growth and expansion • Managing and deploying mobile crews safely and effectively throughout the COVID-19 pandemic, achieving a record year and continuing the company’s year-over-year trends • Accelerating business development efforts focused on winning multi-year, long-term maintenance contracts (“AMS+ contracts”) • Completing an exit to Frontline Road Safety, generating attractive returns for all stakeholders during an economically-challenging year, and transitioning Hi-Lite to a larger organization where it can continue to expand its market leadership in airfield markings maintenance services Mangrove Equity Partners: More Than the Commodity of… Read more »

Mangrove Announces Investment in Steam Turbine Alternative Resources, Inc. “STAR”

  Steam Turbine Alternative Resources, Inc is a Marion, Ohio-based business engaged in high-precision manufacturing and field installation of replacement parts for high-capacity steam and gas turbines. STAR specializes in manufacturing and installing custom turbine seals known as “packing rings,” which are critical wear parts that have a significant impact on the performance and efficiency of turbines. Mangrove backed the highly experienced incumbent management team in a management buyout of the business from its founders. Clayton Newman, Donna Rambin, and Brad Miller bring with them decades of industry experience. Alongside Mangrove’s four-man internal operating team, STAR’s management will work to further penetrate the growing natural gas and combined cycle markets by leveraging its existing customer relationships, manufacturing capabilities and building on recent sales and marketing success. Mangrove is an uncommonly good fit for STAR’s management and employees due: Mangrove’s ability to help STAR develop complementary product offerings and enhance outbound sales efforts Mangrove’s experience supporting strong, motivated management teams in driving organizational improvements and building commercially-focused cultures Mangrove’s relevant industry experience, derived from prior success in mission-critical industrial manufacturing and service businesses Mangrove and STAR signed the LOI on July 1st, during an intense COVID-19 time, and remained committed to… Read more »

Mangrove/Sunlake close valuable add-on during COVID-19

PPS Makes Third Investment in U.S. Security Industry with Acquisition of Internal Security Associates, LLC   Patrol Protect Secure, Inc. is pleased to announce its third investment in the U.S. contract security industry with the acquisition of Internal Security Associates, LLC (“ISA”). ISA is a leading provider of security services in Boston MA, primarily focused on public sector customers, including state agency offices, courthouses, and government buildings. The Company is differentiated from its competitors through its service quality, highly trained employees, and professional management team. The value of adding ISA to PPS and some of the challenges Mangrove/Sunlake worked through to complete the investment include: We partnered with a business, owner and management team that share the same core values and unmatched focus on providing high-quality service as the PPS operating entities (JBM Patrol and Protection, and American Heritage Protective Services). The acquisition expanded our geographic footprint to include the greater Boston, MA market. We increased revenue and EBITDA of the PPS platform by approximately 50%. The transaction provided the founder and CEO of ISA with an attractive option to create meaningful liquidity and a succession plan, while assuring his business would remain intact, his people would be well taken care… Read more »

Mangrove Announces Investment in Hi-Lite Airfield Services, LLC

  Hi-Lite Airfield Services, LLC is a Watertown, New York-based provider of specialized, mission-critical airfield maintenance services throughout North America and the Caribbean. Hi-Lite offers innovative and sustainable maintenance solutions to support airport operations and safety management and to ensure compliance with stringent FAA and ICAO regulations. The transaction (a management-led carve-out from Hi-Lite’s parent company) will allow Hi-Lite to focus exclusively on its core business of airfield pavement maintenance services, including airfield markings, markings removal, runway rubber removal and pavement maintenance. Hi-Lite and it’s former parent company will continue to collaborate to bring the highest level of service to their respective, and often common, customers. Over the last decade, Hi-Lite and its customers have had tremendous success by establishing multi-year proactive asset management programs, which increase efficiencies and help airport operators maintain the airfield safely and economically. Mangrove is an uncommonly good fit for Chris Miller (Hi-Lite’s President) and the rest of Hi-Lite’s management team due to: – Mangrove’s deep experience and meaningful successes supporting operational excellence and growth in mission-critical industrial service businesses, including businesses like Hi-Lite that must efficiently and reliably deploy highly skilled crews and specialized machinery over a broad geography, often on a rapid or… Read more »

PPS Makes Second Investment in U.S. Contract Security Industry with Acquisition of AHPS

Patrol Protect and Secure, Inc. (known as “PPS”) is pleased to announce its second investment in the U.S. contract security industry with the acquisition of American Heritage Protection Services (“AHPS”). AHPS is an Illinois based quality provider of armed and unarmed security guard services, primarily to utility companies and healthcare facilities. This addition and other initiatives have tripled the profits of PPS in the 9 months since our initial investment. The acquisition of AHPS is complementary to PPS’ existing operations and adds size, scale, and diversity to the platform. PPS was formed by Mangrove Equity Partners and Sunlake Capital to pursue a growth-oriented investment strategy in the U.S. contract security industry. We believe there is tremendous opportunity to build a substantial, best-in-class contract security provider by focusing on service excellence and recruiting, training and retaining high-quality people. PPS is actively seeking acquisitions of contract security providers to support its growth in new and existing geographies. The Mangrove team has enjoyed meaningful success with a number of industry consolidations and is an uncommonly strong partner for owner/operators seeking growth through add-on acquisitions. Mangrove’s internal operating team affords our consolidation portfolio partners operating experience and capacity to not only vet, close and… Read more »