Sunlake Capital and Partner Firms Make Third Contract Security Industry Investment with Acquisition of Internal Security Associates
May 31, 2020 - Sunlake Capital LLC (“Sunlake”), in Partnership with Mangrove Equity Partners, L.P. (“Mangrove”), 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. ISA will operate as an independent division of PPS, a platform company created by Sunlake and Mangrove that is dedicated to investing in the contract security industry.
With the acquisition of ISA, Sunlake, Mangrove, and PPS partnered with a business, owner, and management team that share the same core values and unmatched focus on providing high-quality service as other PPS operating entities (JBM Patrol and Protection, and American Heritage Protective Services). The acquisition expanded PPS’ geographic footprint to include the greater Boston, MA market and increased revenue and EBITDA of the PPS platform by approximately 50%.
This 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 maintained a meaningful equity position in the PPS platform, which provides additional future upside tied to all stakeholders’ collective success. The partnership also provided ongoing leadership roles and opportunities for ISA’s strong management team.
PPS is actively seeking acquisitions of like-minded contract security providers to support its growth in new and existing geographies.
Sunlake Capital is a private investment firm focused on long-term private equity investments in family- and entrepreneur-owned companies that possess a sustainable competitive advantage. Sunlake makes control equity investments with the assets of our principals and select capital partners. We partner with our companies to build enduring enterprises with the resources to sustain organic and acquisitive growth. Opportunity to compound this lasting value is made possible by our willingness to hold investments over a longer term.
The Mangrove Equity Partners 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.