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 the process all the way through closing. Despite COVID-19 driven challenges to the business, Mangrove worked with the sellers and STAR’s team to find reasonable solutions and get the deal done.
Mangrove Equity Partners: More Than the Commodity of Capital.
The Mangrove team works hard to be your go-to private equity fund in the lower middle market by leveraging our extensive experience to create solutions and get deals done.
We roll up our sleeves and work with intermediaries to do what is necessary to move good deals forward, even in the face of company or deal complexity. Mangrove’s four-man internal operating team allows us to work through complexity and help owner/operators build enduring value.
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 of and his culture of exceptional quality would be maintained.
ISA’s founder received a meaningful equity position in our parent company, PPS, providing him with additional future upside tied to our collective success.
Our partnership provided ongoing leadership roles and opportunities for ISA’s strong management team.
Mangrove/Sunlake managed through significant uncertainty and material business impact from COVID-19 to close the transaction while maintaining valuation, using mutually attractive structure.
We closed the transaction using all equity given current challenges in the debt market.
PPS is actively seeking acquisitions of like-minded contract security providers to support its growth in new and existing geographies.
More about Sunlake Capital: Sunlake Capital LLC is a private investment firm focused on flexible, long-term investments in family, and entrepreneur-owned companies that possess a sustainable competitive advantage. With diverse capital relationships, Sunlake is able to devote its resources to the operations and strategy of its portfolio of businesses. The firm further differentiates itself through its long-term investment style, unique management partnership approach, and focus on industries and situations that are often under-served by the private equity community.
More about Mangrove Equity Partners: The Mangrove team works hard to be your go-to private equity fund in the lower middle market by leveraging our extensive experience to create solutions and get deals done.
We roll up our sleeves and work with intermediaries to do what is necessary to move good deals forward, even in the face of company or deal complexity. Mangrove’s four-partner internal operating team allows us to work through complexity and help owner/operators build enduring value.
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 episodic basis;
– Mangrove’s flexible and creative approach to helping Chris Miller and his team navigate the complexities of a management-led carveout transaction with a parent company that provided shared leadership, services, facilities and assets and will continue to serve common customers in a tangential service line; and
– Mangrove’s ability to structure a financing package that supports the company’s ongoing capital equipment needs as it continues to grow and maintain the industry’s largest specialized fleet of airfield markings, markings removal and rubber removal machinery.
Mangrove Equity Partners: More Than the Commodity of Capital. The Mangrove team works hard to be your go-to private equity fund in the lower middle market by leveraging our extensive experience to create solutions and get deals done.
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 fund add-ons, but to successfully integrate and build enduring value.
PPS and AHPS are also exemplary examples of Mangrove’s work with quality business-to-business service companies, particularly those with strong margins, and ability to provide outstanding service levels and an ability to take market share from larger competitors whose service quality suffers due to their cumbersome size.
Mangrove Equity Partners is pleased to announce the addition of David Fowles to our team. At Mangrove David will work closely with Glenn Oken and Phillip Marks in identifying appropriate investment opportunities and advancing them through Mangrove’s new deal process.
Prior to joining Mangrove, David spent over twenty years in the U.S. Army as a Special Forces Officer (commonly known as the “Green Berets”). Over his twenty+ year career, he has led and managed special operations missions in hazardous and complicated environments across the globe, including South America, the Caribbean, the Balkans, and the Middle East. His awards and decorations include three Bronze Stars; two for meritorious service in hazardous areas, and one for Valor in combat. He brings a wealth of leadership, organizational and analytical experience to Mangrove.
David holds a Bachelor’s degree from SUNY Oswego, and after transitioning to the private sector in 2017, he received a Master of Business Administration from Northwestern University’s Kellogg School of Management.
David currently lives in Tampa, Florida with his wife and three children.
Mangrove Equity Partners: More than the Commodity of Cash. Mangrove’s four-man internal operating team affords us an ability to leverage their extensive experience working closely with our portfolio company partners to overcome hurdles to growth, and to optimize shareholder value. We roll up our sleeves and work with intermediaries to do what is necessary to move good deals forward, even in the face of company or deal complexity. We hope to have the pleasure of working closely with you.