Manama: Arcapita Group Holdings Limited, a global alternative investment firm, has announced the acquisition of a majority equity stake in C and K Paving, a leading provider of parking lot maintenance services in the United States. The company’s President, Founder, and CEO will retain a significant minority equity stake and continue to lead the business.
According to Bahrain News Agency, this acquisition marks Arcapita’s third private equity acquisition in the business services vertical over the past 12 months, with a combined value of $715 million. This move is part of Arcapita’s strategy to expand its Essential Business Services portfolio, focusing on resilient business models with predictable, recurring revenues.
The US parking lot maintenance industry, valued at $14 billion, is characterized by recurring demand, regulatory necessity, and limited economic cyclicality. It presents significant opportunities for consolidation as larger players aim to scale and standardize services across geographies. C and K Paving provides maintenance-focused paving solutions, including asphalt and concrete maintenance, pavement markings, and other preventative services. The company serves a diverse client base, including big box retail, property management, grocery, and financial services, with an average client tenure of eight years among its top 10 customers.
Hisham Al Raee, CEO of Arcapita, stated that businesses like C and K exemplify the company’s Essential Business Services approach, characterized by resilient models, recurring demand, diversified customers, and potential for growth in fragmented markets. With Arcapita’s support, C and K is well-positioned to expand and continue providing reliable services to its customers.
Neil Carter, Managing Director of US Private Equity at Arcapita, highlighted C and K’s strong market position, asset-light model, and consistent performance, describing it as a suitable addition to the firm’s portfolio. He emphasized the opportunities to accelerate growth while maintaining the high service standards for which C and K is recognized.
Don Koch, President, Founder, and CEO of C and K Paving, described the partnership with Arcapita as an exciting new chapter for the company. He noted that C and K has built a platform defined by quality, reliability, and long-term client relationships over the past two decades. With Arcapita’s support and expertise, the company is well-positioned to expand nationally, pursue strategic acquisitions, and enhance its services to better meet customer needs, generating added value for both the business and its clients.
Raymond James served as the exclusive financial advisor for C and K Paving.