Sterling Group Successfully Finalizes Frontline Sale to Bain Capital
Sterling Group Completes Sale of Frontline Road Safety
The Sterling Group, a prominent middle-market private equity firm, has announced the successful completion of its sale of Frontline Road Safety to Bain Capital. Frontline stands out as the leading provider of pavement marking and associated services in the United States. While the financial details remain undisclosed, this transaction signals a new chapter for both companies.
About Frontline Road Safety
Frontline Road Safety is headquartered in Denver, boasting over 50 locations throughout the country. The company specializes in vital road marking and safety services that are essential for maintaining the integrity of the nation's infrastructure. With a strong combination of regional expertise and the advantages of a national presence, Frontline delivers exceptional service to its clients.
Growth of Frontline Under Sterling's Ownership
Launched in 2020, the Frontline platform was established through the acquisition of three regional pavement marking companies led by founders. Sterling Group strategically placed Mitch Williams at the helm as CEO, backed by a capable management team. The investment firm's involvement went further when Nate Reeve relocated to Denver for a year to help set up corporate functions necessary for scaling the business. Under Sterling's ownership, Frontline has expanded dramatically, executing nineteen acquisitions, including seventeen from family-owned businesses. This history of collaboration and shared success with family sellers has been pivotal in shaping Frontline's growth trajectory.
Leadership Appreciation
“In our journey since 2020, we have been privileged to support the remarkable growth of Frontline,” shared Brad Staller, a Partner at Sterling. He expressed gratitude towards Mitch Williams and the dedicated team for their joint efforts in building the company. Staller emphasized his belief in Frontline's strong position for continued expansion in both service offerings and market reach.
Advisors in the Transaction
The financial consulting firms Harris Williams LLC and Guggenheim Securities, LLC provided advisory services to Frontline Road Safety, while Latham & Watkins LLP offered legal guidance. Bain Capital received assistance from Stifel and UBS Investment Bank for financial advising, supported by Kirkland & Ellis LLP as legal advisors.
About The Sterling Group
The Sterling Group was founded in 1982 as a private equity and credit investment firm focusing on basic manufacturing, distribution, and industrial services sectors. It typically invests in companies with enterprise values ranging from $100 million to $750 million. With a portfolio consisting of 73 platform companies, Sterling has participated in transactions exceeding a total value of $25 billion, currently managing approximately $9.2 billion in assets.
Frequently Asked Questions
What does the sale of Frontline Road Safety mean for the company?
This sale marks a significant transition for Frontline, positioning it to leverage Bain Capital's resources for further expansion and service diversification.
Who led the acquisition and management of Frontline?
Mitch Williams was appointed as CEO, with strong support from the Sterling Group's management team focused on establishing effective corporate infrastructure.
How have acquisitions played a role in Frontline's growth?
Acquisitions have been instrumental, with Frontline executing nineteen in total, enhancing market reach and service capabilities by integrating family-owned businesses into their operations.
What is the history of The Sterling Group?
Established in 1982, The Sterling Group specializes in private equity investments, particularly within manufacturing and industrial service sectors.
What services does Frontline specialize in?
Frontline focuses on pavement marking and various roadway safety services that are essential for infrastructure maintenance across the United States.
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