Key Takeaways
- • Sound Growth Partners acquired Hydro-Vac Holdings (operating as RK HydroVac), a specialized industrial services provider based in Piqua, Ohio that has operated since 1981.
- • RK HydroVac provides roof preparation services for low-slope ballasted roof repair and replacement, utilizing a specialized hydrovac fleet for dry/wet vacuum work and ballast removal.
- • Sound Growth Partners structured the deal through its One-Stop Buyout platform with co-investors, while Brookside Capital Partners provided unitranche debt financing and a preferred equity co-investment.
- • The acquisition expands Sound Growth Partners' portfolio within the niche industrial services sector, with RK HydroVac's existing management team expected to continue operations.
Summary
Sound Growth Partners has completed the acquisition of Hydro-Vac Holdings, which operates under the brand RK HydroVac, marking the firm's entry into a specialized niche within the commercial roofing services sector. The Piqua, Ohio-based company, founded in 1981, provides critical infrastructure support for low-slope ballasted roof repair and replacement projects across the commercial roofing market.
RK HydroVac operates a specialized hydrovac fleet that handles dry and wet vacuum operations, ballast removal, and disposal services for commercial roofing contractors. This operational capability addresses a specific market need within the broader roofing services supply chain, positioning the company as a specialized industrial services provider rather than a traditional general contractor.
The transaction was structured through Sound Growth Partners' One-Stop Buyout platform, which typically features co-investor participation in acquisition financings. Brookside Capital Partners served a dual financing role, providing both unitranche debt and a preferred equity co-investment. Unitranche structures—which combine senior and subordinated debt into a single security—have become increasingly common in lower-middle-market acquisitions as they streamline capital stack complexity and reduce time-to-close timelines.
According to the transaction details, Travis Steele, a partner at Sound Growth, and Nicholas Ganias, a partner at Brookside, were among the key deal participants. The existing management team at RK HydroVac is expected to retain operational control, a retention strategy typical in add-on acquisitions where management continuity is valued for maintaining customer relationships and operational consistency.
This acquisition adds specialized industrial services exposure to Sound Growth Partners' portfolio, diversifying beyond broader commercial services into a technically specialized subsector with recurring revenue characteristics tied to commercial real estate maintenance cycles.
RK HydroVac operates a specialized hydrovac fleet that handles dry and wet vacuum operations, ballast removal, and disposal services for commercial roofing contractors. This operational capability addresses a specific market need within the broader roofing services supply chain, positioning the company as a specialized industrial services provider rather than a traditional general contractor.
The transaction was structured through Sound Growth Partners' One-Stop Buyout platform, which typically features co-investor participation in acquisition financings. Brookside Capital Partners served a dual financing role, providing both unitranche debt and a preferred equity co-investment. Unitranche structures—which combine senior and subordinated debt into a single security—have become increasingly common in lower-middle-market acquisitions as they streamline capital stack complexity and reduce time-to-close timelines.
According to the transaction details, Travis Steele, a partner at Sound Growth, and Nicholas Ganias, a partner at Brookside, were among the key deal participants. The existing management team at RK HydroVac is expected to retain operational control, a retention strategy typical in add-on acquisitions where management continuity is valued for maintaining customer relationships and operational consistency.
This acquisition adds specialized industrial services exposure to Sound Growth Partners' portfolio, diversifying beyond broader commercial services into a technically specialized subsector with recurring revenue characteristics tied to commercial real estate maintenance cycles.
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