API Group to enter elevator services industry through $570M acquisition deal

APi Group has announced its plan to invest $570 million in expanding its operations into the elevator and escalator business. The company, based in New Brighton, is acquiring Elevated Facility Services Group, a company located in Tampa, Florida, with approximately 600 employees spread across 18 states. This acquisition marks APi’s largest since the $3.1 billion purchase of Chubb’s fire and security business.

Elevated, which generates around $220 million in annual sales primarily through contractual maintenance and repair services, boasts higher margins than APi’s other businesses. This aligns with APi’s goal of enhancing long-term shareholder value. The acquisition of Elevated also supports APi’s strategy of cross-selling services across its portfolio, from inspection and monitoring services to repair and maintenance services.

APi Group offers life safety, security, and specialty services to the construction and construction-related industries through multiple operating companies. With approximately 29,000 employees, the company reported a total revenue of $6.9 billion last year, marking a 5.6% increase over the previous year. The elevator and escalator services industry is fragmented, presenting an opportunity for further expansion into a market estimated to exceed $10 billion.

According to Russ Becker, APi’s CEO, the addition of Elevated provides a strategic opportunity for the company to enter the elevator and escalator service market, aligning with their growth goals. Elevated was previously owned by L Squared Capital Partners, an investment firm based in Newport Beach, California, with holdings in education, technology, and services companies. The deal is subject to shareholder and regulatory approvals but is anticipated to close in the second quarter of 2024.