Watchtower Capital Partners Completes First Platform Investment in Ally Services

WASHINGTON, June 26, 2023 /PRNewswire/ -- Watchtower Capital Partners has simultaneously closed the acquisitions of SPS Mechanical (SPS) and JF Plumbing & Heating (JF), the two of which comprise a newly formed company, Ally Services (www.allyservicesgroup.com). Ally is a regional provider of essential home and facility services, including repair, maintenance, and replacement of plumbing, water filtration, and HVAC systems. Ally serves over 3,000 residential and light commercial customers annually throughout Virginia, Maryland, Pennsylvania, New Jersey, Delaware, and Washington D.C. After the initial acquisitions of SPS and JF, Ally also closed its first add-on acquisition, CarrFord Heating & Air Conditioning (CarrFord). CarrFord provides maintenance, repair, and replacement of HVAC systems and water boilers, allowing Ally to expand its market reach in New Jersey.

At closing of the transaction, the founders of both SPS and JF stepped down from their full-time roles with their respective companies into consulting roles for Ally. One of the founders also retains a minority stake in Ally.

Watchtower has named Byron Cantrall as CEO of Ally Services. Mr. Cantrall was formerly President of Clearwave Fiber and CEO of LS Networks. He has more than 30 years of executive leadership experience in service businesses with expertise in scaling organizations, driving revenue growth, and upgrading infrastructure and business systems.

"There is a tremendous opportunity for Ally to grow organically and through strategic acquisitions," said Mr. Cantrall. "With the backing of Watchtower, we have a significant opportunity to make meaningful investments in the business, accelerate growth in our current footprint, expand into new markets, and ultimately take this company to the next level."

"We are very excited to announce Ally Services as Watchtower's first platform investment," said Mike Minchella, Founding Partner of Watchtower. "Ally's core business fits perfectly with our focus on founder- and family-owned businesses that provide essential services in fragmented industries where we can drive growth through bolt-on acquisitions and organic investment in the business."

"The founders of SPS, JF, and CarrFord have all built leading companies in their respective markets with a focus on excellent customer service, and we are eager to join forces with their respective teams to build upon the strong success they have achieved to date", said Casey Lanza, Founding Partner of Watchtower. "Our goal is to maintain each company's commitment to superior customer service, provide attractive career paths for Ally employees, and expand Ally's service territory into contiguous markets."

Watchtower partnered with Aldine Capital Partners on the transaction. This marks the first platform investment for Watchtower Capital Partners.

About Watchtower Capital Partners
Watchtower Capital Partners invests in lower middle market companies that are headquartered in the US or Canada. Typical targets will have less than $7 million in EBITDA. Sectors of interest include industrial services, business services, building products, distribution, and niche manufacturing. For additional information on Watchtower Capital Partners, please visit www.watchtowercp.com.

About Aldine Capital Partners
Aldine Capital Partners is a private investment firm, which provides junior capital financing to lower middle-market companies. Aldine typically invests $4 million to $25 million per transaction in a combination of subordinated debt and equity. Collaborating with traditional and independent sponsors as well as talented management teams, Aldine deploys capital to facilitate growth, support acquisitions/buyouts, or provide shareholder liquidity. Aldine's success is built on a collaborative approach that harnesses over 90 years of combined experience and relationships to create tailored capital solutions.

SOURCE Watchtower Capital Partners