Private-Equity Backed Central States Paving and Concrete Adds New Partner Paving Company

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Jun 07, 2023, 14:10 ET

ATLANTA, June 7, 2023 /PRNewswire/ -- Central States Paving and Concrete, LLC ("Central States"), a partnership of employee and customer-focused asphalt paving and concrete services companies for parking lots, has added Sipes Asphalt & Concrete ("Sipes") to its roster of high-integrity companies.

Central States was formed in December 2021 to partner with PLM Paving and Concrete ("PLM"), based in southeast Wisconsin, and with future partner paving companies. It is backed by Grove Mountain Partners ("Grove Mountain"), an Atlanta-based private equity firm focused on specialty business services and home services companies.

The core tenets of Central States are to provide outstanding customer service and to develop and take care of its talented base of employees. In addition, as the industry and buyer dynamics evolve, Central States companies will be better-positioned to respond to the needs of buyers in more geographies and win more business. Last, the core strategy for Central States is to partner with successful companies, and have the existing owner-operator remain as President.

"We are excited to partner with Central States," said Ryan Laughlin, President of PLM. "The parking lot paving and concrete services industry generates about $25 billion annually, dominated by smaller, local operators. By combining PLM and other like-minded companies into Central States and by putting more companies onto the platform, we will be able to see benefits in the form of lower purchasing costs, customer overlap, and greater resources for capital expenditures such as equipment and IT."

"Both PLM and Sipes value culture and employees and we do everything we can to continue that legacy," said Stephen Fraser, Chairman of Central States and Partner at Grove Mountain. "Customer service is the heart of an excellent paving business and all of our personnel, including the sales professionals and high-quality operational professionals, are focused on the needs of the customer. We are thrilled to welcome Sipes to our growing platform."

Sipes, based in Indianapolis, Ind., specializes in parking lot solutions related to asphalt paving and concrete. Each job is customized to the expectations and desires of the customer.

"From the first time that I met the Central States team, I felt like they were a good fit for my business and our team," said Dean Sipes, owner and President of Sipes. "They already understood the industry, and their vision for what we could jointly create in the greater Midwest was very attractive. Our partnership with them will allow us to achieve our goals more rapidly and with better results than going alone."

With an acquisition financing facility in place from PNC Mezzanine Capital, Central States is poised to add similarly-aligned successful owners capable of substantial growth with additional capital. It is expected to double in size over the remainder of 2023 and 2024 while growing its service footprint across the middle part of America.

Pursant, LLC acted as sole Merger & Acquisition advisor to Central States for the transaction.

ABOUT CENTRAL STATES PAVING AND CONCRETE
Central States is a partnership of paving companies. It is comprised of PLM and Sipes, and is seeking to add more partner companies onto the platform. It seeks to provide excellent customer service while providing a stable and growing environment for its base of committed employees. Through a shared mission and unique vision, Central States gives companies the ability to put their passion into play to reimagine the parking paving and concrete service industry.

ABOUT GROVE MOUNTAIN PARTNERS
Grove Mountain Partners is a private equity firm that invests in middle market home service companies and specialty business service companies, with annual revenues between $15 and $200 million. With a mission to build great companies, it is long-term and relationship-focused, possesses deep sector domain expertise and comprises operators rather than financiers. For more information, visit grovemountainpartners.com.

SOURCE Grove Mountain Partners