Fort Point Capital Exits 3Phase Elevator
June 3, 2021
Fort Point Capital, a private equity firm that invests in lower middle market business services companies, has entered into a definitive agreement to sell its vertical transportation platform 3Phase Elevator (“3Phase” or the “Company”) to Boston-based investment firm Berkshire Partners.
“Our team had a clear value creation plan going into the investment,” said Fort Point Partner, Paul Lipson. “We executed on that plan in close partnership with management to drive organic growth, enhance the Company’s leadership in the market, and complete multiple add-on acquisitions.”
Fort Point Capital sourced and completed six add-on acquisitions supporting the vision of building the largest independent elevator and escalator company in the United States. 3Phase signed two additional letters of intent to acquire elevator companies during the sale process.
“Working hand-in-hand with the 3Phase team, we successfully expanded the senior management team to drive organic growth and capitalize on a market desire for a scaled independent provider as an alternative to the elevator OEMs,” said Fort Point Partner Brooke Ablon. “We were able to drive a sixfold increase in the number of elevator and escalator units under maintenance contracts during our investment hold.”
3Phase Elevator is another example of Fort Point’s commitment to investing in business-to-business services and the facilities services sector. “We are proud of the work we have done with 3Phase, a company whose care for its customers and employees truly differentiates it in the 13 states it serves,” said Fort Point Vice President David Gagliardi. “We are pleased to say that following a transformation under Fort Point’s ownership, 3Phase is poised to continue on its path as the premier independent vertical transportation company. We look forward to watching its next chapter with Berkshire Partners.”
Working with Messrs. Lipson, Ablon, and Gagliardi on the deal for Fort Point were Associates David Sher and Stephen Wittmann.
3Phase and Fort Point were advised by William Blair, Harvey & Company, Kirkland & Ellis and PwC. The transaction is expected to close by the end of June.
About 3Phase Elevator
3Phase Elevator is the leading independent provider of elevator and escalator maintenance, repair, and modernization services in thirteen states across the eastern United States. The Company was founded in 1996. For additional information, please visit www.3phaseelevator.com.
About Fort Point Capital
Based in Boston, Fort Point Capital is a private equity firm that invests in lower middle market, service-oriented companies in partnership with strong management teams. Fort Point is currently investing out of its second fund, FPC Small Cap Fund II, L.P.
About Berkshire Partners
Berkshire Partners, a Boston-based firm, has 35 years of investment history. Berkshire Private Equity has made more than 130 private equity investments since its inception and has a strong history of partnering with management teams to grow the companies in which it invests. Stockbridge, the firm’s public equity affiliate, was founded in 2007 and seeks to make public equity investments in high-quality companies with strong competitive positions and long-term growth prospects. The firm invests in business services & technology, communications, consumer, healthcare and industrials companies. For additional information, and to see a full list of the firm’s private equity investments, visit www.berkshirepartners.com.