Since their inception in 2017, Sweeping Corporation of America (SCA) has created a national footprint through a PE buy-and-build approach, making them the largest self-performing sweeping provider in the United States. As of August 18, 2021 SCA has expanded its services to Southern CA, marking the 12th transaction of 2021 and the 30th acquisition overall.
In a statement released January 2021, the company "announced another year (2020) of strong national growth fueled by a record number of acquisitions and marked by a significant strategic investment from Warburg Pincus, a leading global private equity firm focused on growth investing." However, with the additional acquisitions that have happened this year, SCA has beat their previous record by 3 properties.
Another Record Year
Earlier this year, SCA completed the purchase of Clean Street Inc. and Pacific Sweeping, marking the first diversification into California. “SCA’s expansion into California is consistent with our strategy of building a nationwide presence,” said Christopher Valerian, President & CEO.
SCA grows by another three companies in April, 2021 including: Superior Sweeping Services in Kalamazoo, MI, West Michigan Sweepers in Rockford, MI, and Lots Appeal Environmental Services in Smyrna, GA. The acquisitions in Michigan made SCA the largest sweeping provider in the state.
May and June brought another two purchases: Contractors & Municipal Sweeping Service, Inc in St. Louis, MO and Sunset Property Services in Irvine, CA. With the purchase of C&M, it expands SCA's footprint to a new market and the companies first venture into MO.
B&D Enterprises in Orlando, FL and Metro Commercial Sweeping in Dupo, IL were acquired in July.
The eleventh transaction in 2021 was the acquisition of Major Clean in Charlotte, NC, which is the first entry into the 'fastest growing markets in the U.S.' claims SCA.
Bill's Sweeping Service in Orange, CA was added to the SCA portfolio as the 30th acquired company and the fourth acquisition this year in Southern CA.
Why the Sweeping Industry?
Sweeping is an essential service to keep construction sites, streets and parking lots looking their best while removing unwanted items like trash and pollutants from the area. This industry runs like clockwork and makes the revenue of these businesses predictable and highly sought after as a value driver for Private Equity Firms.
Valerian says the $6 billion sweeping industry is ripe for consolidation because it is highly fragmented and capital intensive. Also, most sweeping companies are small and need constant capital investment requirements as new machines have high price tags. With smaller companies, private equity players are able to consolidate multiple companies to grow without having to pay the high multiples in today’s market conditions.