August 1, 2012
Los Angeles, CA - Capstone Partners LLC, a leading national investment banking firm, announced that it has successfully advised Safety Sam, Inc. (dba Safety Services), on its recapitalization by Serent Capital.
Safety Services is a leading provider of safety and compliance products and services to small and mid-sized businesses in the US and Canada. The company has helped over 200,000 businesses maintain a safe work environment and comply with federal and state safety regulations. Safety Services sells customizable safety materials, training kits, and compliance solutions tailored to meet the safety and compliance requirements in industries such as construction, oil & gas, and healthcare. Serent Capital is a growth equity firm focused on investing in rapidly expanding businesses.
Safety Services’ founder, Devon Dickinson, was looking to move to an advisory role and to find a capital partner who could help the company take advantage of multiple growth opportunities. “I am very excited about Serent’s investment in Safety Services,” said Dickinson. “I was looking for a capital partner who could help take Safety Services to the next level, and Serent clearly has the operating experience to help the company navigate the challenges of rapid growth. I also recognize the need to build out our organization, and I am pleased to say that Serent has already helped us add significantly to our executive team.”
Serent acquired a majority equity position from Dickinson, who retains a significant interest in the business and is continuing to support the company as an active board member. With Serent’s support, the new Board of Directors has hired an experienced new CEO, Peter Schrady, and the company has recently added several additional executives to help scale the business. Serent is working closely with the new management team as it accelerates the company's growth.
“Safety Services has a strong leadership position in industries such as construction and oil & gas,” said Schrady. “Contractors in heavy industries are facing a proliferation of safety and compliance regulations, and Safety Services is in an ideal position to expand its products and services to address these needs. Furthermore, we see tremendous opportunity to continue the company’s expansion to other markets.” David Kennedy, co-founder and General Partner of Serent Capital, added: “The company’s extraordinary growth is a testament to the founder’s vision and execution to date. We see an opportunity to dramatically grow this business, and we are excited to support the company as it continues to innovate.”
Capstone Partners’ team of David Bench, Managing Director, and Tracy Patch, Vice President, managed the transaction on behalf of Safety Services. “Our EH&S group was proud to represent Safety Services and Devon Dickinson in this transaction. We are seeing an unprecedented level of M&A activity in the EH&S industry this year and are excited about the opportunities this presents for business owners like Devon as well as investors like Serent. This is a complementary partnership and makes for a very bright future for Safety Services,” said David Bench.
Capstone Partners LLC is a leading national investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and creditors. The firm provides merger & acquisition, private placement, corporate restructuring, valuation and financial advisory services. Capstone maintains various industry specialties including business services, consumer products, education & training, government services, health & medical, manufacturing & industrial and technology & telecom. The firm also possesses merchant banking capabilities to actively co-invest in transactions.