In the final months of 2020, Harris Williams advised several commercial and industrial services companies in some of the earliest and most significant transactions to occur since the pandemic began: Service Logic, Parts Authority, Capstone Logistics, Valet Living, and Highline Aftermarket.
Besides being grouped under the broad category of commercial and industrial services, these are five very different companies. One is an HVAC maintenance and repair business, two are different distribution models serving the automotive aftermarket, one is a third-party logistics firm, and one offers residential services to apartment dwellers.
Yet despite these differences, these five companies have one important thing in common: Each demonstrated resiliency in the depths of the early pandemic shutdown and very strong performance coming out of it. Their success affirms our long-held belief in the intrinsic value of their respective sectors, as well as the underlying health of the M&A market.
Service Logic's services are inherently recession-resistant, with the majority of their services being performed to maintain and repair a large installed base of existing systems. Now, heightened interest in air filtration is creating new opportunities for the business. Most companies in the automotive aftermarket fell under the definition of essential services during the pandemic and remained open for business—demand in the aftermarket declined for a short period, but Parts Authority and Highline now benefit from more people choosing to drive over using mass transit or flying for transportation needs. Capstone has used its superior technology and growth strategy to derive maximum lift from the tailwinds in the 3PL market. And Valet Living's doorstep trash pickup has remained essential given that people are spending more time at home, while its other amenity services now have strong momentum.
Click below to learn more about the commonalities between these transactions, as well as the value drivers unique to each.
Select Relevant Commercial and Industrial Services Transactions