L Squared Capital Partners Announces Pending Sale of Elevated to APi Group Corporation

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L Squared Capital Partners announces the pending sale of Elevated Facility Services to APi Group The transaction is expected to close in Q2 2024, subject to regulatory approval. L Squared highlights the successful partnership with Elevated's leadership team and the strategic investments made during their ownership period, resulting in significant revenue growth and operational efficiency.

The pending sale marks the eighth overall exit since L Squared’s formation in 2014

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- L Squared Capital Partners (“L Squared”) announced today that APi Group Corporation (NYSE: APG) (“APi”), a global, market-leading business services provider of life safety, security, and specialty services has entered into a definitive agreement to acquire Elevated Facility Services (“Elevated” or “the Company”), a leading provider of elevator and escalator maintenance, repair, and modernization service. The transaction is expected to close in Q2 2024 and is subject to customary closing conditions and the receipt of regulatory approval.

“We are grateful for our highly successful partnership with Matt Biskaduros and the entire Elevated leadership team,” said Sean Barrette, Partner at L Squared. “Matt and the leadership team positioned Elevated for robust growth during our ownership period by providing a superior value proposition to customers and a leading culture that attracted top talent to join the team. We believe that APi and Elevated’s cultures align well and that APi will be an ideal long-term home for the Elevated team.”

A core tenet of L Squared’s investment thesis was capitalizing on the opportunity in the highly fragmented elevator and escalator maintenance, repair, and modernization market. L Squared was steadfast in the execution of the thesis through strategic investments in a world class leadership team, technology, and a culture that prioritized the development of its people. These investments resulted in a differentiated value proposition for customers who rewarded Elevated with high loyalty and increasing levels of business over the years. This strong organic growth was augmented by L Squared through the execution of an acquisition effort where we completed fifteen add-on acquisitions during our seven-year holding period. The result of these efforts was strong growth in net revenue from ~$60 million in 2017 to ~$220 million expected for the current year while also driving significant improvements to operational efficiency.

“I am grateful to the L Squared team for the substantial support and strategic resources they have provided over the years as we built Elevated into one of the largest and most respected independent elevator and escalator service providers in the country,” said Matt Biskaduros. “We are excited to begin our next chapter of growth with APi, who is well positioned to provide us with the additional resources and scale necessary to accelerate our momentum and drive future success.”

L Squared and Elevated were advised on the transaction by Piper Sandler & Co., Vedder Price P.C., PwC, and EY-Parthenon.

About L Squared Capital Partners

L Squared Capital Partners is a private equity investment firm with over $2 billion of equity commitments under management and is headquartered in Newport Beach, CA, that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. L Squared’s unique investor base of family offices and institutions enables the Firm to focus on long-term value creation driven by revenue and earnings growth, not financial engineering, or market timing. The principals of L Squared have worked together for over 15 years and have over 125 years of combined experience investing in growing private companies. For more information, please visit www.LSquaredCap.com.

About Elevated

Elevated Facility Services Group (Elevated) is a leading provider of contractually based maintenance, repair, and modernization services for all major brands of elevators, escalators, and equipment. Elevated provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. Founded in 2004, Elevated is headquartered in Tampa, FL and serves twenty-two states through a branch-led operating model with approximately six hundred team members. For more information, please visit www.elevatedfacilityservices.com.

About APi Group Corporation (NYSE: APG)

APi is a global, market-leading business services provider of life safety, security, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at www.apigroupcorp.com.

This press release is provided for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase of any investment. Investing with any investment firm is suitable only for qualified investors that fully understand the risks of such an investment. L Squared Capital Partners is an investment adviser registered with the United States Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investments with L Squared Capital Partners are only offered in accordance with applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240416885091/en/

Sean Barrette

Partner

Office: (949) 398-0178

sbarrette@lsquaredcap.com

Tyler Huez

Principal

Office: (949) 398-0182

thuez@lsquaredcap.com

Stephen Foley

Senior Associate

Office: (949) 519-3474

sfoley@lsquaredcap.com

Source: L Squared Capital Partners

FAQ

When is the expected closing date for the acquisition of Elevated Facility Services by APi Group ?

The transaction is expected to close in Q2 2024.

What type of services does Elevated Facility Services provide?

Elevated Facility Services is a leading provider of elevator and escalator maintenance, repair, and modernization services.

How many add-on acquisitions were completed by L Squared during their ownership period?

L Squared completed fifteen add-on acquisitions during their seven-year holding period.

Who advised L Squared and Elevated on the transaction?

L Squared and Elevated were advised by Piper Sandler & Co., Vedder Price P.C., PwC, and EY-Parthenon.