Caymus Equity Partners LLC hopes to replicate its commercial HVAC, electrical and plumbing growth strategy in environmental services as it chases add-ons for its latest platform, Quality Environmental Services LLC.
Atlanta-based Caymus, which acquired Quality on Nov. 15 for an undisclosed amount, plans to acquire Midwestern environmental services companies, Caymus associate Garrison Hogan told The Deal.
Beavertown, Mich.-based Quality provides environmental remediation services including asbestos abatement, mold treatment, lead paint abatement, sub-floor grinding, selective demolition and mechanical insulation in the Midwest.
The company’s customers span private, state and federal entities, with a focus on recession-resistant end-markets such as healthcare and education.
Firm at a Glance
- Average hold period of five to 10 years
- Targets platforms with $2 million to $12 million in Ebitda
- Enterprise values between $10 million and $100 million
- First committed fund has raised $70 million of $200 million target
Caymus’ five-year-old portfolio company TriplePoint offers a window into what Quality’s growth trajectory could like, according to Hogan.
Caymus bought Columbus, Ohio-based TriplePoint, then known as Temp-Con Inc., in 2018 for an undisclosed amount. TriplePoint primarily served the greater Kansas City market at the time of the acquisition. The portfolio company has since expanded to nine states in the Midwest and, most recently, the Sunbelt region through add-ons.
TriplePoint in September acquired Dallas-based Polk Mechanical, Elkins, N.C.-based Commercial Air Systems and Winston-Salem, N.C.-based Professional Air Services. The platform company added Sunbelt presence through the three add-ons, which operate in Texas, North Carolina, South Carolina and Virginia.
Among other commercial services businesses, Caymus also owns Denver-based traffic control company Colorado Barricade Co., which plans to tack on more family-owned companies in West.
Caymus typically invests in lower middle market companies with $2 million to $12 million in Ebitda and $10 million to $100 million in enterprise value, according to the firm’s website. The firm typically exits its platforms after about five to 10 years, according to FactSet Research Systems Inc. data.
Quality is the firm’s third acquisition through its Caymus Equity Partners Fund II LP, the firm’s first committed private equity fund. The firm has not disclosed a close for Caymus II, though it had raised $70 million of its $200 million target as of July 2022, according to a Securities and Exchange Commission filing.
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