Narrow Gauge Capital (NGC) has acquired a majority stake in SEI Group an installer of glass fibre insulation, spray foam, cellulose, standing seam metal, gutters, fireplaces, garage doors, door hardware, CBUs, and mailboxes for single and multi-family homes, primarily in the Atlanta metropolitan area.
Eric Cunningham and Matt Hopkins, the existing owners of SEI, will retain their current management positions and a significant ownership stake in the Company. In addition, Joseph Carrington, former CEO of Service Partners and Executive Vice President – Insulation of Masco Services Group Corp., has also acquired an ownership position and will join the Executive Committee of the Company’s Board and play a key role in helping the Company execute its growth strategies. Additional terms of the transaction were not disclosed.
Adam Doctoroff of Narrow Gauge Capital, says: “Since founding SEI in 2008, Eric and Matt have built a tremendous installation business in the Atlanta market. SEI's relentless focus on its customer service truly differentiates the Company from its competitors, and has driven impressive growth over the past eight years. We are thrilled to be partnering with Eric, Matt, and their talented team.”
“We are excited to be entering the next phase of SEI's growth and are delighted to join forces with NGC,” says Matt Hopkins, CEO of SEI. “We selected NGC as our partner due to their deep understanding of our market and strong track record of investing alongside owner-operators like us.”
“SEI stands out as a truly impressive and well-managed company among the many I have had the opportunity to evaluate over the course of my career in the insulation industry,” says Joe Carrington. “I believe that SEI has a wonderful opportunity to continue its rapid growth in the Atlanta market, while also expanding its geographic footprint through strategic acquisitions. I am delighted to be partnering with Eric, Matt and my former partners at NGC to help execute this plan.”
Goldman Sachs provided senior debt financing for the transaction. Siguler Guff and Goldman Sachs provided equity co-investment alongside Narrow Gauge Capital.
Croft & Bender acted as exclusive financial advisor to SEI in the transaction. Winston & Strawn LLP served as legal counsel to Narrow Gauge Capital and Taylor English Duma LLP served as legal counsel to SEI. Brad Stewart of The Capital Solutions Group advised NGC on the debt financing for the transaction.
