Hawthorne, CA, April 15, 2016: Cade & Company is thrilled to announce our recent acquisition of Southern California’s largest B2B fumigation company. The legal name is BENEX, LLC and the company will operate under the brand name of Beneficial Exterminating. Benex has 4 dispatch facilities in S. Cal covering territories throughout Orange, Los Angeles, Riverside, San Bernardino and San Diego Counties.
The company has been in business for twenty-five years and includes a workforce of 68 employees. It provides tenting and termite fumigation to approximately 120 leading pest companies who service the consumer market for pest control.
Steve Cade, President of Private Equity firm Cade & Company, LLC stated, “We are very excited with our latest acquisition of Beneficial Exterminating as it adds to our portfolio of “Must Have” product and service companies. Simply stated, there is no solution to eliminate the rapid multiplication of termites. We can only exterminate them on a temporary basis and repeat the process every five to eight years. This company has a great client base, dedicated employees, and is poised for growth.”
Vim Dutt, the President of Benex, says “Within the first 28 days of operations we have unlocked hidden value, equivalent to 32% of 2015 EBITDA within the company, exceeding the ROI for our parent company and investors. Additionally, fumigation offers many opportunities for profitable roll ups and market diversification. We are seeking partners with whom we can increase our reach synergistically. Many industries need and will always need high quality, reliable, environmentally friendly and safe fumigation.”
Cade & Company is a unique firm, comprising both experienced effective management and a strong track record stabilizing and creating shareholder value. Cade & Company focuses primarily on business segments outside of high tech with an emphasis on industrial product lines and Business to Business products that can be categorized as “must have.” Their search criteria generally includes:
- Long held often family run B2B (typically 20-50 years)
- Established Client Base
- Positive cash flow both before and after acquisition
- Identification of flaws in strategy execution or poor management by pre-acquisition team
- Responsive to improvement in profitability by execution – fiscal management, disciplined planning, customer service approach, and sales strategies