Transaction overview
High Street Capital, a private equity firm based in Chicago, has acquired Pinnacle Contracting Services LLC, a construction materials and works company headquartered in Kernersville, North Carolina. The acquisition closed on March 1, 2023, with the exact deal value undisclosed. Pinnacle provides concrete foundation and finishing services to single and multi-family home builders across North Carolina and parts of South Carolina.
Deal structure and financing
The deal terms remain undisclosed, but High Street Capital is expected to have acquired a 100% stake in Pinnacle Contracting Services through its Fund V investment vehicle. The acquisition was advised by Ironwood Capital and Lincoln International on the buy side, though sell-side advisors were not disclosed. No specific financing details or leverage metrics are available at this time. There is no mention of any seller retained equity or lock-up agreements for management.
Strategic context
High Street Capital's rationale for acquiring Pinnacle aligns with its strategy to invest in companies within the lower middle market that have strong growth potential and a track record of consistent performance. Since its founding in 2011, Pinnacle has demonstrated steady organic growth and is well-positioned to continue expanding its service offerings and geographic reach under High Street Capital's ownership. The private equity firm aims to support Pinnacle’s management team by enhancing operational capacity, particularly in outsourced installation services and human resource development.
Regulatory path
No specific regulatory hurdles were reported for this transaction. Given the deal's undisclosed value and limited geographical scope within North Carolina and South Carolina, it is unlikely that federal or international antitrust authorities reviewed the acquisition. However, local state-level regulatory approval might have been necessary if any significant competitive concerns existed in the targeted market areas.