DENVER – SLATE Partners (SLATE) announced that its Principals advised American Pavement Preservation (APP), a portfolio company of Gateway City Capital Investors, on its sale to Capital Alignment Partners (CAP), a Tennessee-based private equity firm.
Founded in 2009 and headquarted in Las Vegas, Nevada, APP provides a full suite of asphalt preservation services, including slurry seal, crack seal, seal coat, patching, paving, and pavement marking. Serving government agencies, contractors, and property owners in attractive markets throughout the Southwestern United States, APP’s revenue is derived entirely from maintenance and preservation work, with the majority serviced under multi-year recurring contracts.
“Every dollar spent on pavement preservation saves approximately six to ten dollars in future reconstruction costs. Thus, cities, counties, municipalities, and private entities benefit tremendously from the services that APP offers. Interestingly, in times like these when financial budgets are tight, these entities actually increase spending on preservation services since they do not have the resources to perform major rehabilitation projects. While 2020 has been a tough year for most companies, APP has thrived,” commented Aaron Bachik, co-founder and Managing Partner of SLATE.
Barton VanderBurg of Touchpoint Capital Partners, a consultant to Gateway City Capital Investors, remarked, “After interviewing a number of investment banks, we chose SLATE for their experience in the building services sector and their impressive, professional team. SLATE’s knowledge of the outsourced maintenance services industry was key to identifying the buyers most interested in the space and properly positioning APP’s potential to the market, which ultimately yielded an excellent outcome for our shareholder group. The SLATE team was adaptive and creative, running an effective and efficient process despite the global pandemic. I would highly recommend their services.”
APP received legal representation in the transaction from Bryan Cave Leighton Paisner LLP, accounting advisory from Riveron Consulting, LP, and consulting advisory from Touchpoint Capital Partners, LLC.
