Building Industry Partners Announces Strategic Sale of Rapidly Growing Endeavor Fire Protection to APi Group Corporation

Rhea-AI Summary

Building Industry Partners (BIP) has announced the sale of Endeavor Fire Protection to APi Group (NYSE: APG). During BIP's two-year ownership, Endeavor expanded from three to eight locations across fourteen states, growing its workforce to nearly 300 team members. The company achieved significant growth with revenues increasing more than 2x and profitability rising 3.5x through organic initiatives and strategic acquisitions. The sale marks BIP's first exit under its broad-based employee ownership program, allowing Endeavor employees to share in the transaction's success.

Positive

• Revenue growth of more than 2x in two years
• Profitability increase of 3.5x
• Geographic expansion from 3 to 8 locations
• Workforce growth to nearly 300 employees
• Successful implementation of employee ownership program

Negative

• None.

Insights

M&A Analyst

The acquisition of Endeavor Fire Protection by APi Group is strategically significant, marking a substantial expansion in the fire protection and life safety services sector. The target company demonstrated impressive growth metrics with revenue growing 2x and profitability increasing 3.5x over just two years. Endeavor's expansion from 3 to 8 locations across 14 states, coupled with its workforce of nearly 300 employees, represents meaningful market penetration.

This acquisition strengthens APi's market position in safety services and expands its geographic footprint. The deal's structure, including broad-based employee ownership, suggests strong alignment between management and workforce, which typically results in better post-merger integration outcomes. The rapid growth trajectory and operational efficiency improvements at Endeavor indicate potential synergies that could enhance APi's existing operations and market presence.

Industry Specialist

The fire protection services market is experiencing robust growth, driven by increasing safety regulations and construction activity. Endeavor's focus on value-added work in attractive end markets, particularly in the Western U.S., positions APi to capitalize on these trends. The company's service mix of installation, maintenance, repair and inspection creates recurring revenue streams that are typically resistant to economic cycles.

The acquisition enhances APi's competitive position against regional and national players in the fragmented fire protection market. Endeavor's demonstrated ability to execute both organic growth and strategic acquisitions suggests a scalable business model that APi can potentially replicate across its broader network of 500+ locations worldwide.

Endeavor team members shared in the business’ equity value appreciation, as the sale marked BIP’s first exit of a portfolio company under its piloted broad-based employee ownership program

BOSTON--(BUSINESS WIRE)-- Building Industry Partners (“BIP”), the leading middle market private equity firm focused on the U.S. building industry, is proud to announce the successful sale of Endeavor Fire Protection (“Endeavor”), a rapidly growing provider of fire protection and life safety installation, maintenance and repair, and inspection services. Endeavor was sold to APi Group Corporation (NYSE: APG) (“APi”), a market-leading publicly traded provider of business services, including safety and specialty services, with over 500 locations worldwide. Specific terms of the transaction were not disclosed.

BIP launched the Endeavor platform in partnership with Robert Lane, Endeavor’s CEO, in 2022, initially focusing on the Greater Chicago market, with the acquisitions of Valley Fire Protection and Allegiant Fire Protection. With the support of BIP, Endeavor expanded its geographic footprint from three to eight locations serving markets in fourteen states with a total of nearly 300 team members. Over the course of a two-year ownership period, Endeavor’s revenues and profitability grew more than 2x and 3.5x, respectively, through organic initiatives and strategic acquisitions. “We believe that APi Group shares our core beliefs, including strong performance for our customers, growth and opportunity for our employees, and honesty and integrity in our daily business. This partnership will enhance our commitment and investment in our people and allow us to better serve our customers and communities. Our remarkable growth these past few years reflects the commitment of our local management teams, the skill of our frontline tradespeople, and Endeavor’s steadfast focus on being a partner of choice to our customers, and an employer of choice to our team members,” said Mr. Lane.

“This is a well-deserved milestone for the Endeavor team and our investors. We are grateful to have sponsored such a committed and skilled management team,” said Pat Mascia, Partner at BIP. “Endeavor’s success exemplifies the power of backing talented leaders in segments where they have passion, vision, and a demonstrated track record of value creation.”

Justin Gilson, Partner at BIP, added, “The Endeavor team has done an exceptional job growing organically with a focus on targeting value added work in attractive end markets, and strategically entering new geographies in the Western U.S. via acquisitions. We are excited for Endeavor to begin its next chapter with APi, who we expect will be an excellent steward of the business.”

Endeavor employees also shared in the transaction’s success by participating in a broad-based employee ownership plan, an initiative that BIP has piloted at all of its portfolio companies since 2020.

“The successful sale of Endeavor represents our first exit of a business where we implemented our new broad-based employee ownership program,” said Matt Ogden, Managing Partner of BIP. “We learned a lot operationalizing this pilot program, and there is much room for improvement ahead as we scale the initiative. We believe employee ownership better aligned the interests among Endeavor’s shareholders, management, and team members, contributing to Endeavor differentiating its recruitment, retention, and professional development efforts. This, in turn, helped the company towards becoming an employer of choice in its markets. Most fulfilling was that Endeavor team members shared in the meaningful equity value they helped create.”

FMI Capital Advisors acted as exclusive financial advisor to Endeavor Fire Protection and Holland & Knight provided legal counsel to BIP.

About Building Industry Partners

Building Industry Partners (“BIP”) is the leading private equity investment firm focused on the U.S. building industry. Founded by Matt Ogden in 2008, and led by Matt, Pat Mascia and Justin Gilson, BIP is headquartered in Boston, with operating partners and advisors across the U.S.

Over the past 15 years, BIP is proud to have co-founded or been first equity sponsor of a number of the fastest growing and most dynamic businesses in the U.S. building industry’s middle market, including U.S. LBM Holdings, Kodiak Building Partners, Homewood Holdings, and U.S. Fence Solutions/Binford Supply, and Endeavor Fire Protection.

In 2020, BIP redefined its purpose: to build exceptional and enduring businesses, generate world class investment returns, and contribute to elevating its business’ workforce through people-focused investment and business principles. BIP continues to seek opportunities to sponsor the building industry’s greatest talent in building exceptional businesses, realizing their entrepreneurial visions, and increasing shared prosperity amongst shareholders, management, and the broader workforce. For more information, visit www.buildingip.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113152380/en/

Pat Mascia

Partner

99 Bedford Street

Suite 500

Boston, MA 02111

617-431-8333

Source: Building Industry Partners

FAQ

What was the revenue growth of Endeavor Fire Protection before being acquired by APG?

Endeavor Fire Protection's revenues grew more than 2x during BIP's two-year ownership period before being acquired by APi Group (APG).

How many locations did Endeavor Fire Protection operate before the APG acquisition?

Prior to the APG acquisition, Endeavor Fire Protection operated eight locations serving markets in fourteen states.

What was the profitability increase of Endeavor Fire Protection before the APG acquisition?

Endeavor Fire Protection's profitability increased by 3.5x during BIP's two-year ownership period before the APG acquisition.

How many employees did Endeavor Fire Protection have when acquired by APG?

Endeavor Fire Protection had nearly 300 team members when it was acquired by APi Group (APG).