Shock acquisition: Morgan Stanley Capital Partners takes over American Restoration from Soundcore in blockbuster deal

In a major development in the property restoration industry, Soundcore Capital Partners has announced the successful sale of American Restoration Operations LLC to Morgan Stanley Capital Partners. The sale marks a significant shift for American Restoration, a leading provider of property restoration services with a robust footprint across the United States. The transaction reflects Soundcore’s strategic exit from its investment in American Restoration, which began in 2019.

Soundcore Capital Partners Divests American Restoration in Key Deal

The deal, which was completed on [Date], transfers ownership of American Restoration to Morgan Stanley Capital Partners. Based in Dallas, Texas, American Restoration is known for its extensive range of services, including water, fire, mold, and other restoration and remediation efforts. Serving commercial, industrial, and residential customers, the company has established a strong presence across multiple regions.

Soundcore Capital Partners, a New York-based private equity firm, initially invested in American Restoration in May 2019. The investment was driven by Soundcore’s recognition of the fragmented nature of the restoration industry and the recurring service needs that presented significant growth opportunities. Soundcore’s investment thesis was validated through rigorous analysis and a strategic vision for enhancing the company’s market position.

American Restoration’s Growth Under Soundcore

During Soundcore’s five-year tenure, American Restoration underwent significant expansion. The company grew through a combination of strategic acquisitions and organic initiatives, supported by a dedicated focus on integration. Under Soundcore’s guidance, American Restoration completed eight acquisitions, establishing 20 locations across 10 states. This growth was facilitated by Soundcore’s data-driven approach, commitment to continuous improvement, and a focus on integrating acquired businesses effectively.

Dan Tarantin, CEO of American Restoration, expressed gratitude towards Soundcore for their support during the growth phase. He highlighted the value of Soundcore’s partnership, describing them as a trusted and helpful ally in expanding the company’s operations and capabilities.

Soundcore’s Strategic Success and Future Plans

Jarrett Turner, Founder and Managing Partner of Soundcore Capital Partners, praised the successful development of American Restoration. Turner noted the impressive growth achieved through Soundcore’s strategic processes, deal execution, and integration efforts. He also expressed appreciation for the partnership with American Restoration’s management team and the family-owned businesses that contributed to the company’s success.

The financial terms of the transaction between Soundcore and Morgan Stanley Capital Partners were not disclosed. Robert W. Baird & Co served as the financial advisor, while Kirkland & Ellis LLP provided legal counsel to both Soundcore and American Restoration. The sale represents a strategic move for Soundcore Capital Partners, marking the end of a successful chapter for American Restoration and opening new opportunities for the company under its new ownership.

The sale of American Restoration Operations to Morgan Stanley Capital Partners underscores the growing interest in the property restoration sector, which has seen increased consolidation and investment in recent years. The transaction highlights the strategic value of integrating acquisitions and focusing on data-driven growth strategies. Industry experts suggest that this shift could further enhance American Restoration’s capabilities and market presence, positioning it well for continued success in the competitive restoration industry.