Jupiter, FL. December 16, 2021 – Commercial Energy Specialists Holdings LLC, (“CES Holdings”) based in Jupiter, FL, announced the acquisition of Knorr Systems, Inc. (“KSI”), based in Santa Ana, CA. CES Holdings is a platform for acquiring and growing service-based distributors of recreational water treatment equipment to the commercial and institutional markets. The acquisition of KSI represents a significant step in the execution of this strategic growth plan.
KSI, founded in 1977, pioneered chemical automation in the commercial swimming pool market on the West Coast. KSI’s President, Rich Robert, joined the Company in 1985 and has been instrumental in its steady transformation into a leading Service Supported Distribution (SSD®) provider of a full-line of water quality control equipment to thousands of pools on the west coast. KSI’s customers include many of the leading institutional and commercial pools and water parks in California, Nevada and throughout the Pacific Rim. KSI supplies and supports the industry’s leading energy efficient and environmentally friendly recreational water quality brands, including it own Eko3 Systems™ brand, which are instrumental in the operation of some of most acclaimed aquatic facilities in the U.S.
CES Holdings was formed in April 2021 by Turning Basin Capital Partners, LLC (“Turning Basin”) and Vigeo Investments, LLC (“Vigeo”) through a partnership with Alvaro Mendoza, the founder and CEO of Commercial Energy Specialists, LLC (“CES”). CES, founded in 1983, is a pioneer and leading provider of Service Supported Distribution (SSD®) of water treatment solutions in the Florida and Caribbean markets, and throughout the U.S. CES counts among its clients thousands of institutional and commercial swimming pools, swim schools, spas, water parks and water features. CES’s differentiated Q5® Water Quality Management Program and remote monitoring capability provide a comprehensive solution designed to ensure the health and safety, energy and water efficiency, and quality standards for its clients’ facilities.
Rich Robert and the entire KSI team will remain in their roles with the company, providing continuity in services and ensuring the synergy that has already brought such great success to the business. Mr. Robert said, “With our knowledgeable and experienced sales and service people in the field in combination with CES’s Q5® Water Management Program and industry-leading remote monitoring operations, we will be able to bring a higher level of service to our existing customer base, while also allowing us to expand our presence in Texas and other markets. CES and KSI have long recognized each other as peers sharing a common dedication to service and innovation, and through this combination, we will bring the coastal market leaders together to have greater impact at a national level while better serving our existing customers. We are all very excited for the future.”
Alvaro Mendoza, CEO of CES Holdings noted, “KSI is one of the world’s premier institutional water quality organizations, and we are very excited to combine the best practices of KSI and CES to provide expanded products and programs to the thousands of customers that we service, and to form a solid foundation for future expansion. Our team is sincerely looking forward to working with Rich and his entire team of professionals. We can’t wait to get started.”
Tom Willingham, Managing Director of Turning Basin said, “We are excited to participate in the combination of two of the most respected companies in the recreational water quality management market. This transaction is a key step in building towards our vision of a national service-based water quality management leader. Alvaro, Rich and their respective teams bring an incredible wealth of experience and innovation, and share common values and culture. Through their efforts CES Holdings is well positioned to continue to penetrate what is currently a highly fragmented market”
The transaction closed on December 14, 2021. LNC Partners provided a senior subordinated term loan and equity co-investment to help fund the acquisition. Terms of the transaction were not disclosed.
About Turning Basin Capital Partners
Turning Basin Capital is a private equity firm with a unique focus on lower-middle market companies providing services and products to the critical infrastructure, energy, health and safety, and environmental protection and compliance market sectors. TBC provides capital and strategic support, working with its partner management teams, to drive growth and long-term value creation. For more information, visit www.turningbasin.com
About Vigeo Investments
Vigeo Investments is a private family office based in Denver. Vigeo holds a diversified portfolio of operating companies, real estate and other private investments. Vigeo seeks to invest in operating companies via control or minority investments in promising middle market companies primarily across the Industrial, Infrastructure, Business Services and Consumer Products markets. For more information, visit www.vigeoinvest.com.
About LNC Partners
LNC Partners is a private equity firm focused on assisting middle market companies achieve their potential by offering strategic support and flexible capital in the form of equity (majority or minority positions) and debt. The firm is based in Northern Virginia and has over $500 million of capital under management. LNC Partners invests across a broad range of service industries and typically provides between $5 million to $35 million of capital to companies that generate at least $2 million of EBITDA. More information on LNC Partners can be found at www.LNC-Partners.com.