Argosy Private Equity has acquired a Federal Rent-A-Fence, a provider of temporary chain link fencing to construction sites and outdoor events.
Federal’s products and services include post-driven panels of chain-link fencing, gate frames, and windscreens as well as installation and removal services. According to Federal, repeat customers make up to approximately 90% of the company’s revenue with no significant customer concentration.
Federal was founded in 1993 by Sue and Rob Orthey and is headquartered near Philadelphia in West Berlin, New Jersey, with 15 branch locations across the East Coast and Midwest.
“For over 30 years, we have been the trusted choice for the construction and special events industries. Our diverse fence products ensure job site security and liability avoidance, while our commitment to superior customer service remains unwavering,” said Mr. Orthey. “We are excited about this partnership with Argosy and look forward to continued growth while delivering efficient and tailored solutions to our customers.”
Argosy has previously invested in the equipment rental segment. In March 2023, through the firm’s sixth fund, Argosy acquired Vac2Go, a Kentucky-headquartered provider of daily to multi-month rentals of the latest model trucks and equipment to industrial service contractors; environmental contractors; the construction, excavation, and utility industries; and state and local municipal governments. In addition, in 2015 through its fifth fund, Argosy acquired Great Western Leasing, a California headquartered full-service provider of sales, financing, leasing and rental options for new and used flatbed and specialized trailers. Both Vac2Go and Great Western Leasing are current portfolio companies of Argosy.
“Federal is a widely known name in the industry and one of the largest pure-play fence rental companies in the market. We believe this, coupled with the people-first culture the management team has fostered, positions the company well for additional growth opportunities,” said Don Charlton, a partner at Argosy. “Leveraging our experience in the rental equipment industry, we aim to continue to add value.”
Post-closing, Argosy intends to upgrade Federal’s sales and marketing processes through digitization and strategic planning and building a dedicated sales team; and pursuing add-on acquisitions to achieve regional expansion and fleet growth.
“We are thrilled to partner with Joe Orthey and the entire Federal Rent-A-Fence team. Leveraging the culture and reputation the Orthey’s built over the last 30 years, we are excited to invest in this business and unlock new potential,” said John Broderick, an operating partner at Argosy.
Argosy makes control investments of $5 million to $25 million in niche manufacturing and business-to-business service companies with $20 million to $100 million of revenue and $3 million to $10 million of EBITDA. In July 2022, Argosy held a final and above-target closing of Argosy Investment Partners VI LP with $422 million in capital and is seeking both new platforms and add-on acquisitions to its existing portfolio companies.
Headquartered near Philadelphia in Wayne, Pennsylvania, Argosy Private Equity was founded in 1990 and is a division of Argosy Capital, an investment adviser with $3.1 billion of assets under management. Other investment units of Argosy include Argosy Real Estate Partners, Argosy Credit Partners, Argosy Strategic Partners, and Argosy Healthcare Partners. All of Argosy’s funds focus on lower middle-market investment strategies.
© 2024 Private Equity Professional | April 23, 2024
