VSS completes minority investment in Powerhouse
Private investment firm VSS has completed a minority investment in Powerhouse, a tech-enabled provider of refresh, remodelling and facilities maintenance services, in connection with Lincolnshire Management, Inc’s acquisition of the Company.
Financial terms of the private transaction have not been disclosed.
The transaction aligns with VSS’ focus on investing in tech-enabled and high-demand businesses and growth sectors for the economy, including business service companies.
Headquartered in Crowley, Texas, Powerhouse provides nationwide construction services, facilities upkeep, retail store rollouts to a wide range of businesses and established customers in the USD600 billion facilities services market. Founded in 1996, the rapidly-growing Company has more than 350 employees who service the commercial real estate, convenience stores, financial services, grocery and convenience food shopping, healthcare, hospitality, restaurant, retail and telecommunications industries.
“Powerhouse is a differentiated tech-enabled company with an excellent blue-chip client base, high growth potential and a strong management team. It’s a high quality asset-lite company with a very small share of a multi-billion dollar market,” says Patrick Turner, Managing Director at VSS. “We were delighted to be able to team up with the partners at Lincolnshire Management, and together we look forward to supporting its future growth, both operationally and through strategic acquisitions.”
In connection with VSS’ investment, Lincolnshire also acquired Securities Vault Works (SVW), one of the nation’s largest installers of self-service kiosks and automated teller machines, with a co-investment to form a new platform company. Together with SVW, the combined business will employ over 650 workers and have access to a nationwide network of more than 13,000 subcontractors.
“We’re pleased to have the support of VSS, which brings a strong track record of supporting private equity sponsored-transactions with flexible capital solutions that drive growth,” says TJ Maloney, Chairman and CEO of Lincolnshire Management. “Powerhouse and SVW have unique but complementary offerings, backed by strong management teams. We look forward to helping these highly scalable, tech-enabled companies grow, reach more customers and develop more services,"
As part of the deal, VSS will have board observer rights. The transaction represents the firm’s ninth platform investment from its VSS Structured Capital III fund.