The private equity firm, which focuses on founder-led lower middle-market investments, recently acquired Community Tree Service and Traffic Control Partners.
BOSTON, Oct. 25, 2022 /PRNewswire-PRWeb/ -- In recent months, Hastings Equity Partners ("Hastings") announced the acquisition of four founder-led companies, resulting in the firms two latest platform investments. The two platform investments are Community Tree Service ("Community Tree"), a California-based vegetation management company, and Traffic Control Partners ("TCP"), which was formed through the merger of three leading traffic control and safety companies in the Midwest.
Hastings, a lower middle-market private equity firm, founded in 2004, focuses on partnering with founders and investing first institutional capital in the industrial and business service sectors. Hastings generally targets companies that maintain, operate, and upgrade mission-critical infrastructure. The Hastings team is operationally focused and has a hands-on approach to scaling and transforming investments. In the past 17 years, they have invested in 57 unique companies across four funds, and recently made their first platform investment in Fund V, which is currently in market.
In June 2022, Hastings acquired Community Tree as the first platform investment in Fund V. The company was founded in 2001 by Adolfo Garcia and provides a broad suite of vegetation management services to utilities and municipal governments on the West Coast. "Hastings has demonstrated a keen understanding of our services, our industry, and our employees' safety-first culture. The Hastings team has already begun working with us on developing strategies to propel the business forward," said Garcia, Community Tree's President & Founder. Garcia added, "we are excited to partner with Hastings and to take Community Tree to the next level with both new and existing customers."
In July 2022, Hastings formed Traffic Control Partners, a leading provider of traffic control solutions to support road maintenance work for public and private customers in the Midwest. TCP is the combination of three founder-led traffic services businesses: Traffic Control & Protection, TSI Traffic Control, and Traffic Control Specialists. The founders of each business all retain significant ownership and will continue to be actively involved in day-to-day management of the business. "TCP is uniquely positioned to capitalize on the significant demand for traffic control services. Our company has the people, experience, and capital to allow us to take our business to the next level and take care of our customers better than ever before," said Brian Triska, President of TCP Indiana. Customers can expect TCP to continue as a trusted and best-in-class partner with additional resources, wider reach, and increased service offerings to meet their growing needs.
In September 2022, Hastings completed the sale of Code Red, a leading provider of safety equipment and solutions supporting the mission-critical safety needs of industrial facilities throughout the US. Hastings purchased Code Red in 2019, partnering with the founders and industry executive, Nick Mowbray, to recapitalize and acquire two strategic add-ons: Critical 2-Way Communications and Turnaround Logistics. The combination of the three companies has resulted in a scaled operation, filling a void in the middle-market left by the consolidation of several competitors in prior years. Founder of Code Red, Mike Miller said, "everything Hastings told us they were going to do, they did, since the first time we met them." Throughout Hastings' three-year investment, Code Red underwent a period of substantial transformation with revenues increasing 30% and EBITDA doubling. The sale of Code Red was completed in September, resulting in a 3.4x return to Hastings limited partners.
Ted Patton, Founder and Managing Director at Hastings, said of the recent transactions, "we are proud of the team we have built at Hastings and believe our value-oriented approach to investing, long-term dedication to the space, and understanding of the dynamics and requirements needed to operate, transform, and scale founder-led businesses is unique to Hastings." Patton continued, "we will continue to unearth off-market opportunities, invest first institutional capital, and drive value for our investors and employees of our portfolio companies."
Hastings Equity was recently named by Inc. as a 2022 Founder-Friendly Investor, honoring the firm as one of the best private equity firms with a successful track record of backing entrepreneurs. Joe Conlon, Managing Director at Hastings Equity, commented, "we seek to foster strong partnerships that can generate wins for everyone. Not only are we committed to our owner-operators and investors, but we are also committed to the employees and the mutual goals of each relationship we form. Above all, we believe in our team, and in the business owners with whom we work. We hold the owners' work, expertise, and opinions in high regard."
About Hastings Equity Partners
Founded in 2004, Hastings Equity Partners is a lower middle-market private equity firm. Hastings invests first institutional capital in North American founder-led companies within the industrial and business services sectors, where it has deep operating and investing experience. As a preferred capital partner, Hastings seeks to empower businesses to reach their full potential. For almost two decades, the firm has formed long-term partnerships with entrepreneurs while utilizing a hands-on approach to help optimize operations, accelerate revenue growth, and significantly increase equity value. For more information, visit http://www.hastingsequity.com.
Media Contact
Eliza Oshana McGrath, Hastings Equity Partners, 1 781-314-9599, [email protected]
SOURCE Hastings Equity Partners
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