CIVC Cleans Up With Kellermeyer –

CIVC Partners, which has invested in sectors as diverse as fitness clubs and commercial roofing, recently pumped $19 million into Kellermeyer Building Services LLC, a provider of contract janitorial cleaning services. CIVC also arranged senior debt financing for the deal.

The transaction was made through the $500 million CIVC Partners Fund, which is 60% invested to date through thirteen transactions. The firm’s standard investment size is $10 million to $75 million.

“Kellermeyer is a market leader in janitorial services for large format national department stores. No one else is close to them,” said Christopher Perry, a partner with CIVC.

Maumee, Ohio-based Kellermeyer’s revenue was $100 million last year, making the company three times the size of any of its major competitors, which have average annual revenue of between $30 million and $35 million, Perry said. On top of which, he added, Kellermeyer is a very high growth company.

“It has experienced more than 15% compound growth per year over 27 years,” said Perry, who has a background in manufacturing, as well as investing in and financing middle-market companies. He is a director of The Brickman Group Ltd., General Roofing Services Inc., RAM Reinsurance Company, TransWestern Holdings LP, Wastequip Inc., LA Fitness International LLC and now Kellermeyer Building Services LLC.

CIVC prefers to partner with owners and managers interested in continuing to grow their businesses, rather than those who are selling out completely, and this was the case with Kellermeyer – company managers will stay intact.

CIVC also professes to be attracted to business services organizations focused on the build-and-consolidate strategy.

CIVC plans to “fill out Kellermeyer’s footprint.” As it already operates in 1,700 outlets in 45 states, the expansion plans CIVC has for Kellermeyer are not so much geographic as distributive. In other words, it will strive to grow through further penetration of its existing customer base, and more crucially to Perry, through the retail trend to outsource non-core services.

Historically, Kellermeyer has targeted mall-based department store customers, including Sears, Federated and Saks, but has recently made inroads into other building formats including big box retailers such as Target and Petsmart, grocery stores such as Albertson’s, as well as commercial buildings. The company employs 7,000 people.

CIVC Partners manages over $600 million of private equity capital on behalf of Bank of America, and has 30 years of experience in private equity investing. It provides growth capital to middle-market companies engaged in business services, financial services, media and communications, and industrial growth. Realized IRR on its investments exceeds 44% to date.