by Jeff Sheban in Chicago with analytics provided by Philip Segal
Powerhouse, a PE-backed outsourced business services platform created through the combination of three companies, can rapidly achieve revenue of USD 1bn through organic growth and M&A, according to new investor Lincolnshire Management.
Reaching the USD 1bn revenue mark should be “an easy target for us” given macro economic trends favoring the outsourcing of business services and the fragmentation of the facilities maintenance space, said Lincolnshire Managing Director Pieter Kodde.
“This is a very scalable tech-enabled business, one that you can grow very, very fast,” added Managing Director Phil Kim.
On 15 October, Lincolnshire said it had created a new platform by combining three privately held firms: Crowley, Texas-based Powerhouse; Laurel, Maryland-based Security Vault Works, and Houston-based One Source Security & Sound. Terms were not disclosed and the investors declined to provide a current revenue run rate for the combined businesses, which collectively have about 650 employees.
The companies, which will continue to operate under existing names, provide refresh, remodel and facilities maintenance services nationwide through an outsourced network of over 10,000 independent subcontractors. Powerhouse specializes in the retail, food services and hospitality sectors, while Security Vault and One Source focus on ATM installations for financial institutions and self-service ordering and point-of-sale stations for fast food and retail businesses.
Powerhouse is the largest of the three and specializes in rollouts – new signage, kiosks and store displays – and remodeling work for businesses with multiple locations. Powerhouse also provides facilities maintenance services.