US pump renter gets private equity boost
15 September 2022
Capital Pump & Equipment (CPE), a specialty pump rental and services platform based in Chandler, Arizona, US has received investment from private equity firm Harkness Capital Partners (HCP).
The deal will support CPE’s geographic expansion, additional fleet investment, and the growth of its service offer. The value of the investment has not been disclosed.
Founded by Tom Henderson and Dan Foley, CPE supplies high-capacity pumps and related equipment and services in the southwestern United States.
The company’s equipment for rent includes large pumps, fusion machines, liquid holding tanks, back-up generators, and related equipment including pipes and fittings.
It has “long standing relationships with large contractors and industrial customers managing infrastructure and large construction projects, industrial companies (e.g., mining), and municipalities.”
HCP, which specialises in investments in service-oriented companies, has operating experience in specialty rental, and the CPE deal is its fourth platform investment in business services companies.
Its focus is on building long-term value in its portfolio companies, typically outsourced services businesses with between $5-25 million of EBITDA. Priority segments for HCP include specialty rental; logistics and distribution; environment; health and safety; test, inspection and infrastructure services, and other outsourced services.
Tom Henderson, Co-Founder and CEO of CPE, said; “The Harkness team brings extensive specialty equipment rental experience and a proven track record of scaling those businesses into leading regional and national companies.”
“This partnership will benefit Capital Pump & Equipment’s customers, vendors, and employees by allowing CPE to bring its solutions-oriented pump expertise into new markets and further develop the resources it has in existing markets.”
The Harkness investment team, including Denis Nayden and Ted Dardani, Ian Handsman, Anthony Piccione and Ian Ardrey, have led investments in numerous rental and specialty rental businesses. The investment in CPE was made out of Harkness Capital Partners I, LP.
Jennings, Strouss & Salmon, P.L.C. and Gibson, Dunn & Crutcher LLP served as legal advisors for HCP. Catalyst Strategic Advisors, LLC acted as financial advisor and DLA Piper LLP served as legal advisor for Capital Pump & Equipment.