On October 15, Lincolnshire Management Inc. announced a trio of new acquisitions that provides an advanced platform for a refresh, remodel, and facility maintenance services nationwide. Lincolnshire’s investment in Powerhouse – a national provider of rollouts, facilities maintenance, and refresh services – was accompanied by two complementary acquisitions in the self-service kiosk and automated teller machines installation space. Financial terms of the transaction were not disclosed, however Lincolnshire Management CEO and Chairman TJ Maloney has been positive in his statements surrounding the new acquisitions.
A leading nationwide provider of rollouts, facilities maintenance, and refresh services, Powerhouse serves an established base of customers in the $600 billion facilities services market. Headquartered in Houston, Texas, Powerhouse began as a multi-site rollout specialist company. A contract to install 12-foot-tall characters above every Burger King in the United States (approximately 4,000 locations at the time) marked the beginning of Powerhouse’s era as a national leader in multi-function rollouts. Encouraged by burgeoning success across these early projects, the company soon expanded to include facilities maintenance and construction services to the repertoire.
Today, Powerhouse employs over 350 full-time workers distributed across four offices nationwide. The majority of the company’s work, however, is carried out by a network of over 10,000 independent subcontractors. This allows the company to stay asset-light, serving customers across a range of industries – from food service to retail, along with its current expansion into the financial and healthcare sectors. TJ Maloney commented on the recent acquisitions: “We look forward to helping these highly scalable, tech-enabled companies grow, reach more customers, and develop more services.”
Security Vault Works Inc.
Lincolnshire’s recent additions are neatly woven – a three-piece arrangement with interlocking parts. Complementing the Powerhouse investment will be the full-service installations company, Security Vault Works Inc. Based out of Laurel, Maryland, Security Vault Works has grown to become the nation’s leading provider of self-serve kiosks and automated teller machines installations, with 10 office and warehouse locations set up across the country. In combination with One Source Security & Sound, the duo has focused on providing turnkey implementation solutions to the financial and retail industries. This includes full-service installations, as well as project management and facilities maintenance services.
Valued at over $24 billion in 2018, the self-service market is expected to more than double (to $58 billion) by 2024. With fast-food self-service kiosks and automated teller machines contributing significantly to this arena, the acquisition of a national leader like SVW is promising for Lincolnshire’s portfolio. “Powerhouse and SVW have unique but complementary offerings backed by strong management teams,” said TJ Maloney when he announced the news. With Steve Easterbrooks famously hoping to have self-serve kiosks in every U.S. McDonald’s location by 2020, it is apt timing for a firm like SVW to expand its capabilities. Benefiting from Powerhouse’s 10,000+ network of contractors and Lincolnshire’s management guidance, SVW will be looking to lead the charge on this branch of self-service automation, bringing it to retail stores and financial institutions across the country.
Together, Powerhouse and SVW have the potential to form a leading national platform in refresh, self-service installation, construction, and facilities maintenance services. Lincolnshire’s TJ Maloney says of the latest acquisitions: “We see vast potential for these companies to grow together and believe the combination will create a market-leading provider of outsourced business services.”
Lincolnshire Management: A Brief History
Founded in 1986, Lincolnshire Management is a private equity firm based out of New York City that deals primarily with mid-market companies.jj Lincolnshire has over $1.7 billion of private equity funds under management and has invested in a variety of industries through nearly 90 acquisitions. Run on values of creative thinking and flexibility, the company states that it is “open to all industries… [and] flexible in structuring investments and looks to transform under-managed, orphaned, or out-of-favor businesses into highly attractive companies.”
The recent acquisitions of Powerhouse and SVW attest to Lincolnshire’s willingness to invest in new and innovative companies with strong management teams behind them.
TJ Maloney at the Helm
After completing his Juris Doctorate from Fordam Law School and practicing mergers and acquisitions law in New York City, TJ Maloney took a position with Lincolnshire Management in 1993. Before long, he had climbed his way to his current position as CEO and chairman of the successful private equity firm.
Since taking on the position of CEO, Maloney has overseen Lincolnshire’s success with a highly personalized acquisition style. Designing a unique step-by-step approach to the acquisitions process, Maloney moves his team systematically from early research through to identifying points for operational improvement within portfolio companies. A firm believer in team collaboration, Maloney asserts that “Lincolnshire operates by utilizing an extensive network of industry professionals who are available to all [of its] portfolio companies.”
This emphasis on teamwork is not to be overstated, however. Maloney also recognizes a balance between teamwork and individual work; making time for meetings is important, but creating space for his individual work is essential to the success of the fund at large. This balanced, personalized approach to the acquisitions process has run through Maloney’s efforts since taking the reigns and was recognized in 2007 when he was awarded the Richard J. Bennett Memorial Award in recognition of corporate leaders with the highest moral standards.
The latest additions of Powerhouse and SVW lean into TJ Maloney’s personal expertise in guiding companies with large potentials toward outcomes that capitalize on talent, capabilities, and a clear vision for the future.