Oct 24, 2023

Capstone Partners Advised RK Electric on its Sale to Huron Capital

Capstone Partners advised RK Electric—a full-service electrical contractor—on its sale to private equity firm Huron Capital. Terms of the deal were not disclosed.

Based in the San Francisco Bay Area., RK Electric provides highly technical maintenance, repair, and retrofit services for commercial clients in highly specialized end markets including semiconductor, biotechnology, EV and battery manufacturing, and higher education. The company was established in 1985 and employs technicians across electrical and low-voltage divisions who provide comprehensive engineering, design-build, retrofit, reoccurring services, and other auxiliary services. For more information please visit www.rkelectric.com.

RK Electric will serve as the cornerstone of Huron’s new ExecFactor electrical services platform, which was recently formed to execute a buy-and-build in the highly technical electrical services space.

“Having been with RK Electric for over three decades, I am thrilled to see the progress we have made, the team we have and look forward to what we will achieve by working with Huron,” RK President Raul Real said. “Their knowledge and expertise gained from previous buy-and-builds within the complex facility services ecosystem will allow us to accelerate growth both organically and through acquisition with confidence.”

We hired Capstone due to their industry expertise and recent successes in the electrical contracting and facilities service space, and their industry knowledge was evident throughout the entire process. Capstone provided an invaluable hands-on approach and was a resource every step of the way that got this transaction across the finish line.

Raul RealPresident, RK Electric

Tom Bartolomei will become CEO of the overall electrical services platform. In the role, he will guide strategy and expand initiatives alongside RK’s existing management team, as well as hold primary responsibility for sourcing, integrating, and leading future acquisitions for the platform.

“I am thrilled to be partnering with Huron Capital — they have a vision for building a leading electrical services company focused entirely on serving the complex needs of critical uptime environments,” said Bartolomei. “By focusing on differentiated engineering, talent development, and offering a broad suite of preventative maintenance, repair, inspection and compliance services, we will build upon the foundation that has made RK indispensable to blue chip customers for over 30 years.”

Crista Gilmore, Director at Capstone Partners, added, “We were honored to represent the founders and shareholders of RK Electric. RK Electric is one of the best electrical contracting companies that we’ve ever seen, and their 35+ year history and embedded employees with blue-chip customers speaks for itself.  Huron is the perfect group to help guide RK through its next chapter of growth and we are excited to see what’s next for the platform.”

Huron Capital is a private equity firm that invests in lower middle-market companies. It was founded in Detroit in 1999 and brings a people-first and thematic approach to private equity investing in secularly relevant and fragmented sectors. The firm manages over $1.8 billion on behalf of a global institutional investor base and has invested in or acquired more than 130 companies since inception. Huron invests in North America-based companies operating in the facility services, environmental services, test, inspection, compliance, and certification, infrastructure, and utility services, industrial technology and automation services, value-added distribution, transportation and logistics, financial and insurance services, tech-enabled services, and residential services sectors. For more information please visit www.huroncapital.com.

The expert investment banking professionals on Capstone Partners’ Building Products and Construction Services Team work with leading middle market companies operating in the electrical services market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Building and Construction Services Banking Team, contact us here.