Key Takeaways
- • Bertram Capital has invested in Percopo Coatings Company (PCC), a commercial and industrial painting, coating, and waterproofing contractor serving the southeastern United States, marking the fifth platform investment for its Bertram Ignite fund.
- • PCC was founded in 2003 by CEO Mike Percopo and Victoria Percopo and is headquartered in Longwood, Florida, about 13 miles north of Orlando; Mike Percopo will continue to lead the business alongside Bertram.
- • PCC's services span interior and exterior commercial painting, waterproofing, seamless flooring, sandblasting, intumescent fireproofing, and facade restoration, with clients including airports, hotels and resorts, theme parks, schools, and federal buildings.
- • The US painting and wall-covering contractor industry generates roughly $25 billion to $34 billion annually (per First Research and Vertical IQ), yet the 50 largest firms hold little more than 10% of the work, making it a fragmented market suited to add-on acquisitions.
- • Bertram plans to build out PCC through add-on acquisitions, supported by its in-house technology team, Bertram Labs; the deal was advised by Cook M&A, led by President Arnis Kins. Financial terms were not disclosed in the source material.
Summary
Bertram Capital has made an investment in Percopo Coatings Company (PCC), a commercial and industrial painting, coating, and waterproofing contractor operating across the southeastern United States. The transaction is the fifth platform investment for Bertram's Ignite fund, which makes both control and non-control investments in smaller companies with EBITDA of at least $3 million. Bertram was founded in 2006 and is headquartered in Foster City, California. Chicago-based Cook M&A, led by President Arnis Kins, acted as financial advisor on the transaction. Deal value was not disclosed in the source material.
PCC was founded in 2003 by CEO Mike Percopo and Victoria Percopo and is headquartered in Longwood, Florida, about 13 miles north of Orlando. The company applies and maintains painted and protective surfaces on large buildings and infrastructure. Its services include interior and exterior commercial painting, waterproofing for walls, roofs, and below-grade structures, seamless flooring, sandblasting to remove old coatings and rust, intumescent fireproofing for structural steel, and restoration of aging building facades. Its customers are commercial, industrial, and institutional building owners, and it has worked on airport terminals, hotels and resorts, theme parks, schools, and federal buildings. It also offers decorative themed finishes that mimic stone or metal for hospitality and entertainment clients. Following the closing, Mr. Percopo will continue to lead the business in partnership with Bertram Capital.
Mr. Percopo said the company is "proud to partner with Bertram to accelerate our next phase of growth." He added that Bertram "demonstrated a clear understanding of our business, our people, and the standards we hold ourselves to," and that Bertram Labs' digital capabilities should help the company "further strengthen our operations and better serve our clients across the South." Zack Bassi, a vice president at Bertram, said the firm appreciates "the deep industry knowledge, relationships, entrepreneurial spirit, and grit required to operate a successful business in these categories," and described PCC as a household name in painting and specialty coatings among general contractors, developers, and facility managers.
The investment reflects the structure of a fragmented segment. According to industry trackers First Research and Vertical IQ, US painting and wall-covering contractors generate roughly $25 billion to $34 billion a year, spread across tens of thousands of mostly small, independent operators, with the 50 largest firms accounting for little more than 10% of the work (per First Research). Much of commercial coatings revenue recurs, since protective coatings, waterproofing, and fireproofing degrade on a schedule and large property owners often prefer a contractor that already knows their buildings. Bertram intends to build PCC into a regional platform through add-on acquisitions, supported by Bertram Labs.
PCC was founded in 2003 by CEO Mike Percopo and Victoria Percopo and is headquartered in Longwood, Florida, about 13 miles north of Orlando. The company applies and maintains painted and protective surfaces on large buildings and infrastructure. Its services include interior and exterior commercial painting, waterproofing for walls, roofs, and below-grade structures, seamless flooring, sandblasting to remove old coatings and rust, intumescent fireproofing for structural steel, and restoration of aging building facades. Its customers are commercial, industrial, and institutional building owners, and it has worked on airport terminals, hotels and resorts, theme parks, schools, and federal buildings. It also offers decorative themed finishes that mimic stone or metal for hospitality and entertainment clients. Following the closing, Mr. Percopo will continue to lead the business in partnership with Bertram Capital.
Mr. Percopo said the company is "proud to partner with Bertram to accelerate our next phase of growth." He added that Bertram "demonstrated a clear understanding of our business, our people, and the standards we hold ourselves to," and that Bertram Labs' digital capabilities should help the company "further strengthen our operations and better serve our clients across the South." Zack Bassi, a vice president at Bertram, said the firm appreciates "the deep industry knowledge, relationships, entrepreneurial spirit, and grit required to operate a successful business in these categories," and described PCC as a household name in painting and specialty coatings among general contractors, developers, and facility managers.
The investment reflects the structure of a fragmented segment. According to industry trackers First Research and Vertical IQ, US painting and wall-covering contractors generate roughly $25 billion to $34 billion a year, spread across tens of thousands of mostly small, independent operators, with the 50 largest firms accounting for little more than 10% of the work (per First Research). Much of commercial coatings revenue recurs, since protective coatings, waterproofing, and fireproofing degrade on a schedule and large property owners often prefer a contractor that already knows their buildings. Bertram intends to build PCC into a regional platform through add-on acquisitions, supported by Bertram Labs.
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