December 22, 2010
Ace Asphalt of Arizona Announces a Partnership with Prophet Equity LP
Phoenix, AZ - December 22, 2010 - Ace Asphalt (“Ace”) today announced it has partnered with Prophet Equity LP, a private equity firm that specializes in ownership equity investments for middle and lower middle market companies. Under the terms of the transaction, Ace Asphalt becomes an owned affiliate of Prophet Equity LP, and Ace’s long time Chief Operating Officer, Mike Moertl, has been named President of Ace.
Tim Drexler, the son of founder John Drexler, and now former President and CEO of Ace Asphalt, will continue to play an important advisory and ownership role in the business going forward. “This event represents a watershed in Ace’s 40+ year history,” Tim commented, “After many months of searching, we have selected a capital partner that shares our values of delivering high quality solutions to the marketplace with a strong track record of driving profitable growth.”
Ross Gatlin, Prophet Equity’s CEO and Managing Partner, explained that “the opportunity with Ace Asphalt fits right into our strike zone - a family owned and operated business where our toolkit can be deployed to take the business to the next level.”
Under the terms of the transaction, the company will continue to operate out of existing facilities to provide service coverage throughout Arizona, and in select markets outside of Arizona, with its 250+ employees.
“The team and I are thrilled to have partnered with Prophet Equity at this point in our Company’s history. We believe that the team at Prophet Equity, their collaborative approach, and our track record of delivering reliable maintenance, new construction, and our other construction services, is a powerful combination that will allow us to grow our successful business model throughout the Southwestern US.”, commented Mike Moertl, Ace’s new President.
Ben Eakes, a Vice President at Prophet Equity, observed that “Ace Asphalt has a terrific leadership team and dedicated, capable employees. With a strategically strong business, we see many opportunities to help them continue to deliver a strong value proposition to their customers in Arizona, and in new markets.”
About Ace Asphalt
Through persistent focus on reliability, responsiveness, and results for over 40 years, Ace has become the largest private grading, paving, and pavement maintenance company in Arizona. Ace paves or resurfaces over 180 million square feet per year, is a two-time member of the Inc. 5000, and has been ranked by its customers among the Top 10 Heavy Construction Companies in Arizona for the past 10 years. For more information, contact us at 602-243-4100.
About Prophet Equity LP
Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.
Over the last decade alone, Prophet Equity’s Principals have invested and managed approximately $400 million of control equity in over 30 entities with over $4 billion in revenue. Their control equity investments focus on lower and middle market companies with strategically strong businesses with significant value creation potential, such as those found in partnerships, corporate carveouts, divestitures and non-strategic businesses of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500.
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