Coalesce Completes Inaugural Investment in Premier Compliance Firm Examinetics

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Aug 16, 2023, 08:00 ET

NEW YORK, Aug. 16, 2023 /PRNewswire/ -- Coalesce Capital, a private equity firm focused on investing in business services companies, announced today that it has teamed with Freedom 3 Capital, an existing Examinetics shareholder, and management to recapitalize Examinetics, a leading provider of occupational health compliance testing services.

Examinetics empowers businesses to protect the health and wellbeing of their employees through its comprehensive suite of occupational health compliance solutions. The company launched Salux™, its internally developed auditory testing technology in late 2022 to provide remote service delivery and materially expand its client reach. Coalesce's investment in Examinetics is expected to enable the company to further accelerate its expansion in existing and new markets, as well as introduce new and increasingly innovative technologies and services to meet the complex regulatory requirements facing its clients.

"We are incredibly energized to be partnering with Coalesce for the next phase of Examinetics' growth," said Gary Gluzberg, President. "It is an exciting time for our company as we join up with such a proven private equity team in the business services sector. Their commitment enables Examinetics to accelerate our growth, invest further capital to serve customers and continue to build national scale."

Stephanie Geveda, Founding and Managing Partner of Coalesce, said: "We back management teams who are building the platforms of tomorrow. Examinetics has an incredibly high-quality business model, driven by megatrends around increasingly complex regulatory and compliance requirements facing businesses. Today, Examinetics reaches more than 3,000 clients in over 18,000 locations annually, and we could not be more excited to partner with this team to deliberately scale this business, further enhancing the range of customers they serve and the value they can deliver to them."

Brian Block, a Partner of Freedom 3 Capital who is reinvesting alongside Coalesce in this transaction, said: "We are excited to partner with Coalesce to scale this business. It has already been a terrific investment for us, and its tailwinds remain robust. The value-creation playbook that Coalesce's team has defined for business services will continue to drive sustainable, profitable growth for Examinetics." Brian Block and Stephanie Geveda have known each other for more than two decades, initially started their investing careers together, and previously collaborated on numerous investments.

Paul Fenaroli, CEO of Examinetics, said: "We were highly motivated to personally reinvest equity in the business as part of this recapitalization. In addition to our faith in the business model, our commitment to our clients and their employees, and our mission to improve workplace health and safety, the Coalesce team's track record of success in business services will provide Examinetics with access to capital and expertise that we expect to be transformative to our business."

Financing for the transaction was provided by Bank of Montreal. Legal advisors were Kirkland & Ellis for Coalesce and Morrison Foerster for Examinetics. Financial advisory services were provided by Stout and Houlihan Lokey.

About Examinetics

Examinetics offers a comprehensive suite of compliance testing services including hearing conservation, respiratory protection, and other medical screening & surveillance. We leverage our unmatched scale supported by a large fleet of mobile medical units utilizing uniform standardized procedures to provide fast & flexible scheduling and consistent client service across the country. Our internally developed hearing testing technology, called Salux™, allows us to be the only occupational health provider to offer testing services to our clients in any method best suited for any specific facility needs. To learn more, visit www.examinetics.com.

About Coalesce Capital

Coalesce Capital is a private equity firm that partners with management teams to build long-term value around differentiated businesses. Entirely focused on human capital-driven and technology-enabled business services companies, our investment philosophy centers around our conviction that people are the most important ingredient of success. Coalesce teams with middle market business services companies to develop and execute long-term strategic plans focused on accelerating both organic and inorganic growth and leveraging its extensive network of functional and industry advisors to lend specific expertise. The word coalesce reflects the firm's core values and approach: partner with management teams to come together to create shared success and the platforms of tomorrow. For more information, please visit www.coalescecap.com

About Freedom 3 Capital

Freedom 3 Capital ("F3C") invests in North American middle market companies to support strategic development and growth opportunities. We offer flexible and tailored credit investment structures primarily to family/entrepreneur-owned companies. F3C has a long history of meeting the specific requirements of management teams and the long-term objectives of business owners. F3C's private equity approach to credit investing creates meaningful engagement with companies and valuable, lasting partnerships. Our team has decades of experience in principal investing, C-suite level management and operations. F3C is currently investing capital from its Capital Solutions Fund 5 and F3 Senior Finance, with offices in New York, Kansas City and Dallas. For more information, please visit freedom3.com.

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SOURCE Coalesce Capital