DFW Capital Partners announced today that it has completed the sale of its portfolio company, Andrews International, to Boston-based private equity firm Audax Group for an aggregate purchase price of $161 million. DFW realized a 30% IRR and a 2.6x ROI on its investment in Andrews.
DFW originally invested in Andrews’ predecessor company in 2004, leading a management buyout of Copstat Security. At the time, Copstat was a $30 million in revenues provider of manned security and special event services, serving primarily the New York City marketplace. Post-acquisition, DFW led investments in sales and marketing resources, systems and an upgraded financed and accounting function to support future growth. Copstat completed the acquisition of HMI Associates in 2005, and merged with Valencia, California-based Andrews International in early 2006. At the time, Andrews was principally a West-Coast security provider, with similar operating philosophy and management backgrounds as those of Copstat. The combined business was renamed Andrews, and over the next two years, the company completed several additional add-on acquisitions while adding numerous large national accounts. Andrews has grown to be one of the largest, US-owned security companies in the country, with 7,000+ employees, operations in 10 states, and run rate revenues in excess of $225 million.
Randy Andrews, Andrews’ CEO, noted “We are very pleased to complete the sale to Audax, which we believe can usher in new phase of growth for the company. We have had tremendous success under our partnership with DFW, and have valued their insights and expertise in identifying and closing add-on acquisitions, helping to build our infrastructure, and overall collaborative approach to building Andrews.”
Joining DFW in the Andrews deal were Meridian Venture Partners, and lenders Madison Capital, Golub Capital, NewStar Capital and Greyrock Capital Group.
About DFW Capital Partners
DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare and outsourced business and industrial support services. DFW is backed by both institutional and high-net worth individual investors, and has established a 20+ year track record of success in both building leading companies, and recognizing top-quartile returns for its investors. DFW is headquartered in Teaneck, NJ, and maintains an office in Washington, D.C. For more information contact Keith Pennell, General Partner, at (201) 836-6000.