“MML made an investment in Apache Industrial Services at an important inflection point in the evolution of our organisation's culture and market footprint. Their collaborative partnership during this transformative period for Apache Industrial Services has made a permanent and lasting impact on the architecture of our business and the industry.”

Mike Knigin, CEO, Apache Industrial Services

Apache Industrial Services

apacheip.com
Growth capital to finance a rapid expansion strategy.

The business

Apache Industrial Services ("Apache") is a leading provider of soft-craft services, including refractory, fireproofing, scaffolding, coatings, and insulation to refining, chemical, power, and industrial facilities located across the US Gulf Coast region.

The deal

MML led the acquisition of Apache in 2013, in a proprietary, off-market deal, alongside Mike and the company’s management team and two of MML’s longstanding Limited Partners. The investment into Apache followed MML’s long history of successful investments focused on energy and infrastructure in the US Gulf Coast region, including CoreLabs, XServ (now part of the Brock Group) and TNT Crane & Rigging. Our initial investment re-aligned the shareholder base and allowed management to invest into a meaningful minority ownership stake.

The exit

Supported by MML’s significant domain expertise and Apache’s experienced management team, Apache achieved material growth and margin enhancement during our investment timeframe. We provided follow-on capital to fund organic growth initiatives, including funding to construct a newly dedicated services and training facility, and additional investment to develop the company’s asset base (e.g. scaffolding). Apache also completed three add-on acquisitions to strategically expand its footprint along the US Gulf Coast. In 2017, after the company nearly quadrupled its EBITDA, MML successfully exited our investment in Apache via a sale to a Toronto-based private equity investor.

Fund
Partnership
Region
US
Deal Status
Realised
Sector
Industrials

Related news

Sale of Apache Industrial Services Represents Another Successful Exit for MML Capital Partners
MML Capital Partners (“MML”) has exited its investment in Apache Industrial Services (“Apache”) through a sale of the company to Quantum Capital.
Apache Industrial Services completes two acquisitions
MML Capital Partners (“MML”) is pleased to announce that Apache Industrial Services, Inc. (“Apache”) has completed two acquisitions: Southern Insulation Inc. (“Southern”) and Stark Sandblasting and Painting Co. (“Stark”). Terms of the acquisitions were not disclosed.
MML Capital Partners acquires Apache Industrial Services
MML Capital Partners (www.mmlcapital.com) has led the acquisition of Apache Industrial Services, Inc. (www.apacheip.com) for an undisclosed amount. Apache’s management team co-invested in the transaction, as did two of MML’s limited partners: GoldPoint Partners and Cigna Investment Management. Senior financing for the deal was provided by PNC Bank, N.A.

Associated deal team

Robert M. Davies

Partner
US

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