APi Group to acquire Elevated Facility Services Group for $570M in cash

APi Group announced that it has entered into a definitive agreement to acquire Elevated Facility Services Group, a provider of contractually based services for all major brands of elevator and escalator equipment. Elevated will be acquired by APi from a fund managed by L Squared Capital Partners for approximately $570M in cash, subject to working capital and other standard adjustments. The majority of Elevated’s net revenues come from non-discretionary services – inspections, service, and repair. Elevated will also provide APi a platform from which to expand its bolt-on M&A strategy in the fragmented elevator and escalator services space. The acquisition is expected to contribute $220M in annual revenue and to be accretive to APi’s “13/60/80” shareholder value creation framework driven by Elevated’s strong EBITDA margin profile, 70% of revenue from inspections, service and repair, and an asset light business model driving strong adjusted free cash flow conversion. Following the transaction, the company intends to stay aligned with its long-term net leverage target of less than 2.5x and continues to see an attractive market to grow through acquisitions. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions and regulatory approvals.