Platform Investments and Approach

We are value investors focused on consolidation opportunities in the lower middle-market which provide strong multiple-arbitrage upon exit. We are skilled at crafting the appropriate deal structure, time horizon and incentives for each opportunity in which we invest.

We seek to partner with companies led by experienced management teams who, like us, possess a clear vision for the growth direction of their industry and business.

We typically target companies in large and fragmented markets where growth can be achieved both organically and through strategic acquisition initiatives. An ideal partner for us is a company approaching, or at, an inflection point in their lifecycle that values the options we contribute to the conversation. We typically will only invest in industries where we can add significant value, have a deep appreciation for both the opportunities and challenges that management faces, and see the potential to grow the business in a metered approach over time.

Typical Investment Criteria

Transaction Size

Enterprise Value: $20-100mm
EBITDA: $5-20mm
Equity Investment: $10-50mm

Company Characteristics

Experienced management team
Defensible position
High customer retention / repeat purchase
Operationally excellent

Transaction Types

Seek majority control investments
Management led buyouts
Transition or owner liquidity
Carveouts

Portfolio focus

Examples of past and current investment focus areas

Stone Road Energy

Stone Road Energy is a leading consolidator in the retail energy industry throughout New England. Since our initial platform purchase in 2014, we have completed nineteen acquisitions, several divestitures, and a merger. Current firm revenue of $300+ million, EBITDA of over $27 million, ranking as top 25 largest Propane distributors in the US.

Ready Mix Concrete

In 2018, SRP acquired a 70-year old Ready-mix business, our initial platform acquisition in the infrastructure space. The founding family continues to manage the business. Annual revenues over $40 million with EBITDA of $9+ million.

Infrastripe

SRP invested in Infrastripe, a leading infrastructure safety services and traffic control provider to the highway striping industry. Completed 9 transactions since 2018 creating national footprint. Average acquisition multiple 4.5-5.5x.

Traffic Control and Site Support Services

Stone Road is actively seeking to build a nationwide network of traffic control and site services businesses to support the infrastructure industry. We are focused on acquiring traffic control equipment providers, temporary fencing contractors, and other site support services businesses.

Quick Lube & Vehicle Maintenance

Stone Road is acquiring quick lube and vehicle maintenance operations across the country. We are focused on networks where we can deploy our management team's operations improvement playbook to rapidly drive growth and profitability.

Towing

Actively seeking acquisitions in the towing space. Ideal candidates will be regionally focused towing operations with a bias toward heavy duty towing and recovery operations.