ARCAPITA Group Holdings, a global alternative investment firm, has announced the acquisition of a majority equity stake in C&K Paving, a leading provider of parking lot maintenance services in the United States.
The company’s founder and chief executive, Don Koch, will retain a significant minority stake and continue to lead the business.
This acquisition marks Arcapita’s third private equity deal in the business services sector over the past year, bringing the total value of these acquisitions to $715 million. The move reinforces the firm’s strategy of investing in “resilient business models with predictable, recurring revenues.”
According to Arcapita, the US parking lot maintenance industry is a $14 billion market, characterised by consistent demand, regulatory requirements, and limited economic sensitivity. The sector is highly fragmented, providing significant opportunities for consolidation as larger players seek to expand their services across different regions.
C&K Paving specialises in maintenance solutions, including asphalt and concrete upkeep, pavement markings, and other preventative services. The company’s business model is described as “asset-light,” with a strong vendor-managed platform and long-standing relationships with vendors across the country.
C&K Paving’s client roster includes major ‘blue-chip’ companies in retail, property management, and financial services. The top 10 customers have an average tenure of eight years.
Arcapita chief executive Hisham Al Raee said that C&K represents a core part of the firm’s investment strategy, highlighting its “resilient model with recurring demand” and potential for growth in a fragmented market.
“With Arcapita’s support, C&K is positioned to grow and continue delivering the dependable services that customers have come to rely on,” he added.
Neil Carter, managing director of US private equity at Arcapita, praised C&K’s consistent performance and strong market position, noting the company has grown its revenues organically every year since its founding.
“We see compelling opportunities to accelerate growth while preserving the high service standards for which C&K is known,” said Mr Carter.
Raymond James served as the financial adviser for C&K Paving on the transaction.
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