Parallel49 Equity Completes Sale of Road Safety Services to Harvest Partners

LAKE FOREST, Ill., Dec. 13, 2023 /PRNewswire/ -- Private equity firm Parallel49 Equity ("Parallel49"), today announced the successful closing of the sale of Road Safety Services, Inc. to affiliates of Harvest Partners, LP. 

Road Safety Services (www.roadssinc.com) is a leading provider of a diverse set of pavement marking and other road safety-related services. Headquartered in Omaha, Nebraska, Road Safety Services currently operates in 15 states in the Midwest, Mid-Atlantic, and Southwest.

Under Parallel49's ownership, Road Safety Services ("RSS") grew from a small, single-state striping operator to one of the largest providers of road safety services in the country by strategically investing in fleet expansion, information technology and human capital, as well as by leveraging best practices across the platform. Over Parallel49's six-year hold period, RSS completed 11 acquisitions and generated organic growth of over 11% annually across the entirety of its footprint, resulting in EBITDA growth of greater than 20x during the period.

Scott Daum, Managing Director at Parallel49, noted, "Our investment thesis was formulated to capitalize on long-term trends in U.S. infrastructure, which we identified and pursued in conjunction with a talented management team, whose deep experience in fleet management, route-based logistics and regulatory-driven end markets was a perfect fit for the space. We are extremely proud of the company that we have built with Mike Johnson, RSS's CEO and President, and the entire team at RSS, and are thankful to have had the opportunity to create a world-class infrastructure company with the scope and scale that RSS has today. We wish Mike and the team the best as they continue their journey of growth with Harvest Partners." 

"The success of our investment in RSS could not have been achieved without the expert leadership of management. We are grateful for their partnership," added Jack Westerman, Managing Director.

Mike Johnson of RSS commented, "On behalf of the entire RSS organization we would like to extend our sincere appreciation to the Parallel49 Team, particularly Scott Daum and Jack Westerman, for the unwavering commitment, support and expertise in helping build RSS into a world-class operating platform."

Advisors to RSS and Parallel49 included Piper Sandler (investment banking) and Honigman LLP (legal).

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SOURCE Parallel49 Equity