Gryphon Investors Makes Majority Investment in PestRoutes
Expands Software Industry Focus with Recapitalization of Leading Provider of Software for Pest Control Companies
Jan 27, 2020, 15:00 ET
SAN FRANCISCO, Jan. 27, 2020 /PRNewswire/ -- Gryphon Investors ("Gryphon"), a San Francisco-based middle-market private equity firm, announced today that it has made a majority investment in PestRoutes (or the "Company"), a leading provider of software for pest control companies with recent momentum in other field service verticals such as lawn care and pool servicing. Existing financial sponsor Mainsail Partners will retain a minority stake, as will PestRoutes co-founder, Jared Green. The current executive team, led by CEO Patrick McKittrick, will continue to manage the business.
Founded in 2012 and based in McKinney, Texas, PestRoutes provides business management software and, through its Lobster Marketing brand, integrated marketing solutions to pest control, lawn care, pool servicing, and other field service industries. The Company serves over 1,500 residential and commercial pest control and field service companies, automating all aspects of their operations, including route optimization, real-time technician tracking, customer communications, scheduling, and billing.
"PestRoutes serves a number of large and growing field services markets with complex software needs that are not being met by existing solutions," said Jon Cheek, Deal Principal in the Software Group at Gryphon. "PestRoutes not only addresses the complicated requirements of field services companies of all sizes, but it does so through the use of modern, easy-to-use software complemented by high-quality customer service, which together provide tremendous value and a superior customer experience."
As part of the transaction three Gryphon executives will join the PestRoutes Board of Directors – Nick Orum, President and Co-Head of the Software Group; Carl Theobald, Software Operating Partner; and Mr. Cheek – joining Mainsail Partner Jason Payne, who remains on the board.
Mr. McKittrick commented, "We have enjoyed rapid growth under our partnership with Mainsail and we are now excited to work with Gryphon as we pursue further expansion of functionality to our existing customers and markets as well as products serving new industries within field services. Gryphon's added financial and operational resources will allow us to more easily scale our operations rapidly and efficiently, ultimately improving the already high-quality experience that our customers have come to associate with PestRoutes."
Mr. Orum at Gryphon added, "Through our multiple prior investments in field services and route-based companies, as well as our proactive sector research leading to those investments, we've consistently found that the field services industry has been underserved by modern technology that's capable of managing the complexities of these distributed business models from end-to-end. The rapid growth and high customer retention of PestRoutes are key indicators that the Company has cracked the code on providing high-quality software that offers meaningful value to its customers. We look forward to partnering with Patrick and his team as we work to build the business together."
"The partnership with Jared, Patrick, and the broader PestRoutes and Lobster team has been incredibly fulfilling," added Mr. Payne. "Our original thesis was based on the unique value PestRoutes delivers to customers and the durability of the end market. That thesis has held up very well and we are excited to continue our involvement as investors and partners in building a leading field services software company through organic growth and M&A."
Arbor Advisors was the financial advisor to PestRoutes. Kirkland & Ellis acted as legal advisor to Gryphon, and Goodwin Procter acted as legal advisor to PestRoutes. Terms of the deal were not disclosed.
About PestRoutes
PestRoutes' software and mobile applications power the entire operations of pest control, lawn care, pool servicing, and other field service businesses. Over 1,500 pest control and field service companies rely on PestRoutes to automate all aspects of their operations, making them more efficient from the office to the field all while helping to grow their businesses. PestRoutes business management software and integrated marketing solutions deliver the data-driven insights pest control and field service companies need to grow quickly, scale smartly and serve customers relentlessly. Launched in 2012 and headquartered in McKinney, TX, PestRoutes is dedicated to delivering software solutions that create long-term value for pest control and field service business owners and their families. For more information, please visit www.pestroutes.com.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. The firm has managed over $5.0 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $100 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, specialized professional resources, and operational expertise.
About Mainsail Partners
Mainsail Partners is a growth equity firm that invests exclusively in fast-growing, bootstrapped software companies. Since 2003, we have invested in over 50 growth companies. Our dedicated operations team is purpose-built to help exceptional entrepreneurs scale their businesses and accelerate growth. For more information, please visit www.mainsailpartners.com.
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SOURCE Gryphon Investors