JUPITER, Fla., April 20, 2021 /PRNewswire/ --
Parcrest Advisors ("Parcrest") served as the exclusive investment banking advisor to Commercial Energy Specialists ("CES" or the "Company") on its investment from Turning Basin Capital ("TBC"). CES is a pioneer and leading provider of Service Supported Distribution® water treatment solutions for thousands of institutional and commercial swimming pools, spas, water parks, water features, and industrial process water clients. Based in Jupiter, Florida, CES distributes water treatment products which include chemical treatment packages, filtration systems, heater systems, pumps, saline and ultraviolet systems, aquatic lifts, and heaters and covers. Value-added services include engineering and design support; full factory commissioning; on-site preventative maintenance, service and support; and operator training and certification.
CES was founded in 1983 by Cuban American entrepreneurs Alvaro and Francisco Mendoza, who originally built the business as the commercial division of a highly successful solar energy contracting company. Within the first two years of operation, the Company secured Palm Beach County Parks, Walt Disney World and The Breakers Palm Beach as high profile customers that have stayed with CES for nearly four decades. In recent years, the Company has become the de facto standard for swimming pool water quality treatment programs with its trademarked Q5® Aquatic Rating System, and helped develop the most extensive real-time pool monitoring program in the industry.
During the Coronavirus pandemic, the Company experienced headwinds with theme parks and cruise lines going offline. However, the business maintained profitability and replaced "paused" revenue streams with new customers in new markets. In spite of the pandemic disrupting an otherwise robust M&A process facilitated by Parcrest Advisors, CES successfully closed on its transaction with TBC.
"We were blessed to have selected Parcrest Advisors to lead us through this process. We had specific goals of finding the perfect capital partner to help take our platform company to the next level. They helped us prepare, performed a robust search of highly qualified potential partners, and skillfully weeded out investors who would not properly align with our long-term vision and corporate culture. We couldn't have done it without them as a driving force in this successful outcome," said Alvaro Mendoza, CEO and Co-founder of CES.
"We are excited to partner with CES, which will serve as our platform company that has significant runway to gain scale in its niche market by way of both organic and inorganic growth. We applaud Parcrest's role in putting this deal together, which required finesse and diplomacy in negotiating complex deal points to ensure a win-win outcome for all parties," stated Tom Willingham, Managing Partner at Turning Basin Capital.
"I couldn't be more satisfied with this outcome for Alvaro and his team for successfully forming this partnership, and its enormous potential going forward. It was a true pleasure to work with Alvaro from conceptualization to execution and closing of this M&A process. We continue to see a significant opportunity in Industrial Distribution, and CES is yet another example of our thesis of consolidation potential within this sector," said Francisco Lume, Managing Partner at Parcrest Advisors.
"Parcrest proudly continues to find success in negotiating successful closings on behalf of our valued clients in spite of a worldwide pandemic. Transparency, trust and perseverance have been the key driving principles of our firm, as well as those of our counterparties, that have led to this fantastic result," stated James C. Lee, Founder and Managing Partner of Parcrest Advisors.
About Commercial Energy Specialists
CES is a leading provider of water treatment solutions to institutional and commercial swimming pools, spas, water parks, water features, and industrial process water clients. For nearly four decades, CES has served as a value-added partner to longstanding customers by championing its trademarked Service Supported Distribution® model. Further information about CES can be found at www.ceswaterquality.com.
About Turning Basin Capital
Turning Basin Capital is a private equity firm with a unique focus on lower-middle market companies providing services and products to the critical infrastructure, energy, health and safety, and environmental protection and compliance market sectors. TBC provides capital and strategic support, working with its partner management teams, to drive growth and long-term value creation. For more information, visit www.turningbasin.com.
About Parcrest Advisors
Parcrest Advisors is a rapidly growing investment bank based in New York City with a strong focus in consumer and industrials sectors. In order to provide securities-related services discussed herein, principals of Parcrest are licensed with Independent Investment Bankers, Corp. member FINRA & SiPC. Independent Investment Bankers, Corp. and Parcrest are not affiliated entities. Further information about Parcrest is available at www.parcrest.com.
James C. Lee
Founder & Managing Partner
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SOURCE Parcrest Advisors