Arcapita Group Holdings Acquires Majority Stake in C&K Paving
In a bold move, Arcapita Group Holdings Limited (“Arcapita”), the global alternative investment firm, has announced the acquisition of a majority equity stake in C&K Paving (“C&K” or the “Company”), a prominent 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 will continue to lead the business, ensuring continuity in leadership.
Over the last year, Arcapita has been on an acquisition spree in the business services sector, with three private equity acquisitions totaling $715 million. This move has expanded its Essential Business Services portfolio and underscored its commitment to resilient business models with predictable, recurring revenues.
The US parking lot maintenance industry is a lucrative $14 billion market driven by recurring demand, regulatory requirements, and limited economic cyclicality. Not only is the industry experiencing rapid growth, but it also remains highly fragmented, presenting a prime opportunity for consolidation as larger players aim to standardize services across different regions.
C&K specializes in maintenance-focused paving solutions, offering services such as asphalt and concrete maintenance, pavement markings, seal coating, and other preventative measures essential for parking lot upkeep. The Company is a key player in a fragmented market, boasting a scalable, vendor-managed platform with operations and strong vendor relationships nationwide. With a blue-chip client base spanning sectors like retail, property management, grocery, and financial services, C&K maintains an average client tenure of eight years among its top 10 customers.
Hisham Al Raee, CEO of Arcapita, stated, “Businesses like C&K epitomize our Essential Business Services strategy: resilient models with consistent demand, diverse clientele, and potential for expansion in fragmented markets. With Arcapita’s backing, C&K is poised for growth, continuing to deliver the reliable services customers depend on.”
Neil Carter, Managing Director of US Private Equity at Arcapita, remarked, “We are excited to collaborate with Don and the C&K team. The Company’s strong market position, asset-light model, and track record of steady performance make it a perfect addition to our portfolio. With organic revenue growth every year since its inception, C&K’s reputation precedes them. We see great opportunities to accelerate growth while upholding the high service standards C&K is known for.”
Don Koch, President, Founder, & CEO at C&K Paving, expressed his enthusiasm about the partnership with Arcapita, saying, “Teaming up with Arcapita marks a new chapter for C&K. In the past two decades, we have built a platform synonymous with quality, reliability, and enduring client relationships. With Arcapita’s support and expertise, we are well-equipped to expand nationally, pursue strategic acquisitions, and enhance our offerings to better serve our customers. We are eager to see the value this partnership will bring to our business and clients.”
Raymond James served as the exclusive financial advisor for C&K Paving, facilitating the successful acquisition process.
