CIVC Portfolio Company Specialized Elevator Holdings Announces Merger with 3Phase Elevator
Canton, MA and Santa Fe Springs, CA, January 21, 2022 – 3Phase Elevator (“3Phase”), a leading independent elevator and escalator services provider in the eastern United States and Specialized Elevator Services Holdings (“Specialized”), California’s leading independent elevator service provider, announced their merger today, creating the largest nationwide independent union elevator services company in the United States. Existing 3Phase investor Berkshire Partners has made a strategic growth investment in the combined company, including acquiring CIVC Partners’ stake in Specialized. Both companies’ management teams are investing significantly in the transaction. Other terms were not disclosed.
Specialized Elevator Services Holdings operates under the brand names Specialized Elevator, 24 Hour Elevator, and San Francisco Elevator. The existing management teams of both 3Phase and Specialized will remain in place, including Donovan McKeever, founder of San Francisco Elevator and current President of Specialized. McKeever will continue to serve as President of Specialized, a division of 3Phase Elevator, and will be responsible for leading the company’s western markets.
“We set out three years ago to become the premier elevator service provider for customers, and to be the employer of choice for union mechanics in the major California markets,” said McKeever. “Merging with 3Phase provides us with a transformational opportunity to take our commitment to customers and employees at a national level as the only independent IUEC service provider with true national scale.”
“We are thrilled to partner with Donovan and the entire Specialized team,” said Michael Strachan, CEO of 3Phase. “Both of our companies pride ourselves on exceptional customer service. Together we can improve the level of service to customers and create better opportunities for independent union mechanics nationally.”
Following the merger, the business will employ more than 390 members of the International Union of Elevator Constructors and service more than 20,000 elevator and escalator units.
“We’re pleased to continue to support 3Phase on its journey to be the provider of choice for customers, union mechanics, employees, and independent service providers seeking merger partners,” said Dave Bordeau, Managing Director of Berkshire Partners. “We are fortunate that CIVC, Donovan, and the Specialized leadership team chose 3Phase as its partner. The combined 3Phase and Specialized company will continue to offer the exceptional customer services both companies were built on, enabled by industry-leading technology and centralized support infrastructure.”
“We’d like to thank Donovan and the entire Specialized team for their tireless efforts over the past few years and a fantastic outcome on this investment,” said JD Wright, Partner of CIVC. “The combination of 3Phase and Specialized creates a clear preferred option for customers with a national presence who are seeking the best service in the market. It has been a privilege supporting Specialized in this past chapter, and we are excited to see where the combined companies go from here.”
William Blair & Company served as exclusive financial advisor to Specialized and CIVC Partners, and Ropes & Gray LLP, served as its legal counsel. Jeffries Group served as financial advisor to Berkshire Partners and 3Phase on the transaction and Ropes & Gray LLP served as legal counsel.
About 3Phase Elevator
Founded in 1997, and headquartered in Canton, Mass., 3Phase Elevator is a leading independent provider of elevator and escalator maintenance, repair, and modernization services across 18 states and the District of Columbia. The company has grown in part through 13 acquisitions of other independent elevator and escalator services providers, including 10 over the past year. 3Phase maintains more than 20,000 units for building owners and property managers. The company is built on a foundation of exceptional customer service. For additional information, visit www.3phaseelevator.com.
About Specialized Elevator Services Holdings
Specialized Elevator Services Holdings was formed through the recapitalization of San Francisco Elevator, Ascent Elevator, and Specialized Elevator in 2019 to create a leading independent provider of elevator maintenance, repair, and modernization services in California and one of the largest independent providers in the country. With offices in the Bay Area, Los Angeles, and San Diego, Specialized provides its services to the three largest metropolitan areas in California covering 90% of the state’s elevator units.
About Berkshire Partners
Berkshire Partners, a Boston-based investment firm, has been investing in well-positioned, growing companies for more than 35 years. Berkshire Private Equity has made more than 145 private equity investments since its inception and has a strong history of partnering with management teams to grow the companies in which it invests. Stockbridge, founded in 2007, seeks to make public equity investments in high-quality companies with strong competitive positions and long-term growth prospects. The firm’s Stockbridge and private equity teams frequently collaborate and leverage their collective industry expertise in multiple areas, including in communications and digital infrastructure, consumer, healthcare, technology, and services and industrials. For additional information, and to see a full list of the firm’s private equity investments, visit www.berkshirepartners.com.
About CIVC Partners
CIVC Partners is a Chicago-based private equity firm investing in high growth middle market companies in the business services sector. Since 1989, the team has invested approximately $1.9 billion in 71 platform companies and currently invests from CIVC Partners Fund VI. More information on CIVC Partners and its portfolio companies can be found at www.civc.com.