Pavement Partners and Brothers National Merge to Form Pave America
Warrenton, Virginia – February 24, 2023 – Pavement Partners Holding, LLC (“Pavement Partners”) has merged operations with Brothers National, LLC (“Brothers”) to create one of the nation’s preeminent pavement service companies, Pave America, LLC (“Pave America” or the “Company”). Pave America is a leading provider of maintenance-driven pavement solutions including repair, milling, sealcoating, and striping services to commercial, municipal, industrial, utility, and HOA customers with nationwide coverage through an extensive self-perform and outsourced vendor model. In less than two years, Pave America has closed and integrated a litany of acquisitions and plans to continue to execute an aggressive organic growth and acquisition strategy. The Company’s primary investors, Shoreline Equity Partners (“Shoreline”) and Trivest Partners (“Trivest”) will maintain dual control in the go-forward business, and Lincoln Road Global Management (“Lincoln Road”) will retain minority equity ownership. As part of the transaction, Tom York, formerly at Pavement Partners, will assume the role of Pave America CEO and Paul Garner, formerly at Brothers, will serve as President.
Tom York, CEO of Pave America, said, “The opportunity to combine these two businesses to form one of the leading pavement service providers in the country makes tremendous sense for all the Company’s constituents. We are quite familiar with a number of the businesses Brothers partnered with and have a strong appreciation for the platform the Brothers team and Trivest have built. With the formation of Pave America, we are going to be able to expand our service offering, geographic reach, and, most importantly, better serve our customer base.”1
Paul Garner, President of Pave America, said, “We are thrilled to bring our two platforms together in a way that enables us to offer broader services to our customers and additional opportunities for employee growth. Pavement Partners and Shoreline have built a platform comprised of best-in-class companies that we competed against and respected across many markets. Bringing together so many respected leaders in the industry allows us to harness our collective experience to continue raising the bar for service across the industry.”2
Mike Hand, Managing Partner of Shoreline, said, “The opportunity to build this platform with Tom and the team over the last couple of years has been an incredible experience. As we continued to execute our growth strategy, this merger and partnership with Trivest quickly became the most logical next step for us. Our ability to support clients in a more meaningful way and leverage the remarkable technology that the Brothers’ team has built has our entire team excited about the future of Pave America.”
Russ Wilson, Managing Partner of Trivest, said, “We have admired how Pavement Partners and Shoreline thoughtfully built their platform. Both Brothers and Pavement Partners aligned with well-respected and high-performing companies. Perhaps most importantly, the organizations are culturally similar, with an acute focus on customer service and a mission to build better communities. Bringing these two businesses together is a unique opportunity. Trivest would like to thank Paul Battista, the original founder and CEO of Brothers, for all of his contributions as he transitions into a Board of Directors role at Pave America.”3
The transaction for Shoreline was led by Mike Hand, Managing Partner; Ian Garland, Principal; Pete Bouret, Senior Associate; and Dylan Somohano, Associate. MidCap Financial Trust (Admin Agent; MidCap transaction team was led by Director Tyler Wilson), MUFG Bank Ltd, WhiteHorse Capital Management LLC, Fidelity Direct Lending LLC, Apogem Capital LLC, and LGT Capital Partners Ltd provided debt financing for the transaction. Citizens Capital Markets and Solomon Partners acted as co-lead financial advisors for Pavement Partners and Shoreline in the transaction.
About Pave America
Pave America is a leading provider of asphalt and concrete solutions including maintenance, repair, milling, striping, and sealcoating services. With over 1,400 employees, Pave America has nationwide coverage through an extensive self-perform and outsourced vendor model. The Company primarily serves commercial, industrial, HOA, utility, and municipal customers.
Shoreline is a lower middle market private equity firm focused on actively partnering with leading management teams. Shoreline follows a total stakeholder model, meaning success should be a “win-win” proposition for shareholders, employees, customers, vendors, and the communities within which the Firm’s companies operate. Shoreline professionals believe in honesty, incentive alignment, and creating bigger, better businesses without relying on financial engineering or cost cutting to generate returns. With over $750 million of committed capital under management, Shoreline seeks to lead equity investments of up to $150 million per transaction in support of buyouts, recapitalizations, and corporate divestitures. Targeted businesses have enterprise values ranging from $50 million to $350 million and EBITDA of $5 million to $25 million. The Firm strives to partner with management teams of businesses primarily within the specialized manufacturing, value-added distribution, and business and facility services sectors, among others. For more information, please visit www.shorelineequitypartners.com.
Founded in 1981, Trivest Partners is one of the oldest private investment firms in the United States. For over four decades, Trivest has built its entire business model around helping founder-owned businesses transition and realize a long-term future as successful independent companies. Over its history, the firm has invested in nearly 500 companies with total value of almost $8BN. To learn more, visit www.trivest.com.
About Lincoln Road
Lincoln Road Global Management is a private equity firm making control investments in lower middle market buy-and-build opportunities in North America. Lincoln Road targets founder- and family-owned businesses providing essential services and producing essential goods in fragmented industries where it believes there are an abundance of untapped growth opportunities that would benefit from operational intervention coupled with an acquisition strategy. To learn more, visit www.lincolnroadmgmt.com.
1-Mr. York is an investor in one or more of Shoreline Equity Partners’ investment funds and serves as an executive at one of its portfolio companies.
2-Mr. Garner is not an investor in any of Shoreline Equity Partners’ investment funds, but serves as an executive at one of its portfolio companies.
3-Mr. Wilson is not an investor in any of Shoreline Equity Partners’ investment funds, but serves as a board member at one of its portfolio companies.