A private-investment firm has purchased a prominent Dallas-area pool/spa firm with the intention of expanding statewide through acquisitions.
Earlier this year, Chicago-based private equity firm Concentric Equity Partners recapitalized Riverbend Sandler Pools, a construction/service/retail firm based in Plano, Texas.
It plans to adopt the consolidation model that has taken hold in the pool/spa service sector, only this time it will begin with construction companies. For the time being, it plans to operate within Texas borders, but it may branch out to other Sunbelt states in the long term.
Concentric Partners doesn’t anticipate rebranding acquired companies in the near term.
“We’re looking for other really well regarded companies in Texas,” said Adam Lucas, vice president of Concentric Equity Partners. “I think the idea would be to continue to maintain, grow and preserve those well-known brand names.”
In addition to brand equity, the company prefers builders that generate at least $5 million in revenue or construct at least 50 pools per year. Service companies of various sizes would be considered. The company is willing to negotiate with sellers who want to remain with their companies as well as those looking for an exit strategy.
All acquirees will fall under the same holding company, whose name is expected to be determined soon.
The company’s goal is to reach $100 million by the end of 2022, Lucas said. With some negotiations in the works, it expects multiple acquisitions in the next few months.
Riverbend Founder/CEO Charles Barnes will retain an ownership stake in the company and will serve in a new role, helping to identify other companies that would fit in the group.
A new CEO has been selected. Bruce Mungiguerra has a background in various fields, including the airline and home security industries. He holds more than 20 years of leadership experience. He most recently served as senior vice president of global sales and marketing for Nortek Control, a home automation and security company. He was responsible for sales, marketing, customer care and training.
Concentric Equity Partners is the direct investing arm of Financial Investments Corporation, a private asset management firm with more than $2 billion in investment commitments under management. It tends to work with middle-market companies in service industries, such as pest control. The firm doesn’t strive to sell within a specific time frame, Lucas said. It tends to hold companies for an average of eight to 10 years, he said, depending on the circumstances.
