Caldwell & Gregory

The Story

Caldwell & Gregory is a leading operator of laundry facilities for colleges and universities and multi-family housing complexes. From its headquarters in Manakin-Sabot, VA, Caldwell & Gregory serves more than 150 colleges and universities encompassing 175 campus locations throughout 19 states and the District of Columbia.

Transaction Dynamics

A partnership with management to recapitalize the company. Founder and key employees remained active shareholders in the company.

Investment Thesis

  • Market leader in highly profitable niche region
  • Strong barriers to entry due to long-term contracts, established route density, and capital requirements
  • Industry leading customer service levels with loyal and diverse customer base
  • Experienced management team with significant reinvestment
  • Stable, predictable, and growing free cash flow
  • Solid platform for acquisitions and organic growth
  • Positive industry fundamentals
  • Strong brand recognition

Incline Value Enhancement

  • Signed first university accounts in Florida, South Carolina, and New York in 2008
  • Increased operational leverage via route density and consolidation of back office functions
  • Added sales resources to grow the multi-family housing and distribution businesses
  • Recruited outside board member with strong experience in the multi-family housing market
  • Aggressively pursuing new university business in core markets and recently entered geographies
  • Upgrading existing IT systems to better manage routes and improve reporting

Headquarters

Manakin-Sabot, VA

Industry

Business Services

Investment Date

October 2008

Status

Realized

Fund

II

I chose them as our investor because of their wide-ranging experience with similar companies, and they did not disappoint.  Their recommendations spanned all facets of the company, including an upgrade to the IT system that significantly improved our ability to manage routes and enhance reporting. John Gregory, Founder

Please read our Regulatory Information

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