Detroit–based Peninsula Capital Partners today announced it has completed an investment in Pro-Tec Fire Protection in Loganville, Ga. The investment was made by Peninsula’s most recent investment partnership, Peninsula Fund VI L.P., with committed capital of $402 million.
The transaction was a recapitalization of Pro-Tec that both provided liquidity to the company’s founders and additional capital resources to pursue acquisitions of similar companies in the fire protection, detection, inspection, and suppression industry. Terms of the deal were not disclosed.
Peninsula says it has identified numerous potential acquisition candidates, and has initiated preliminary acquisition discussions with several. The goal is to acquire a number of similar companies in the next few years, with the first acquisition expected to occur before the end of this year.
Pro-Tec Fire Protection was founded in 2003 and has built a successful and diversified fir protection services business mainly focused on the Atlanta metropolitan area. Services include periodic inspections, safety code compliance, system maintenance, fire extinguisher management, service calls, and sprinkler system design and installation.
The company serves commercial customers such as industrial facilities, warehouses, office buildings, multi tenant housing, churches, and retail centers. Pro-Tec’s founders and top executives remain in their roles and are partnering with Peninsula to grow the company.
“Some time ago we identified fire protection services as an attractive industry for investment and have reviewed many companies in the space over the years, but had not found one we believed was a suitable platform to enter the industry,” says James Illikman, a partner at Peninsula Capital who led the investment.
“Pro-Tec represents a solid platform for us to build upon in terms of market reputation, service offering, and management depth. We are delighted to have partnered with Pro-Tec and its management team to scale the Company into a meaningful player in the fire protection industry.”
Peninsula Capital is a private equity investment firm that has raised six investment partnerships totaling approximately $1.6 billion of committed capital. The firm provides customized capital solutions to middle market businesses seeking funding to complete acquisitions, support growth, buyback stock, or address other special situations requiring junior capital.
Peninsula pioneered the development of a new, more flexible investment approach in the private equity industry and is recognized as a leader in its market, with major institutional investors both in the United States and Europe.
Peninsula’s investment approach combines elements of buyout, private debt, and growth capital funds, allowing it the flexibility to craft tailored capital solutions for businesses, including both debt and equity, and either as a controlling or non-controlling investor. Since 1995, the firm has closed over 120 platform investments.
For more information about Peninsula Capital, including all of its current and former portfolio investments, visit www.peninsulafunds.com.