June 20213Phase Elevator Announces Investment from Berkshire Partners
CANTON, Mass., June 3, 2021 – 3Phase Elevator, a leading independent elevator and escalator services provider, today announced that it has entered into a definitive agreement with Boston-based Berkshire Partners to acquire the company from existing investor Fort Point Capital. The investment will enable 3Phase to expand into new markets across the United States through strategic acquisitions and partnerships, and to further strengthen the company’s sales and digital capabilities. Terms of the transaction were not disclosed.
3Phase provides elevator and escalator maintenance, repair, and modernization services to customers in the eastern United States and is built on a foundation of exceptional customer service, including quick response times to ensure equipment uptime. The company has grown in part through six acquisitions of other independent elevator and escalator services providers -- including four in the past 12 months -- that are then able to leverage 3Phase’s technical expertise and scale to enhance service and attract new customers. The company maintains more than 8,500 units for building owners and property managers in the commercial, retail, healthcare, education, industrial, municipal, and residential sectors, and employs more than 140 members of the International Union of Elevator Constructors.
“We are thrilled to partner with the Berkshire team,” said Mike Strachan, CEO of 3Phase. “The firm brings deep expertise in enabling the growth of market-leading services businesses like ours. This investment comes at an important time in 3Phase’s growth, and we expect that Berkshire’s digital and go-to-market capabilities will help us further strengthen the service we provide our existing customers, and also attract new customers.” Strachan continued, “I’d also like to thank the Fort Point team for their valuable contributions and strategic insights over the past three years.”
“Mike has a clear vision to build 3Phase into the leading national independent elevator services company,” said Dave Bordeau, Managing Director at Berkshire Partners. “We’re honored to be able to support 3Phase on its journey to be the provider of choice for customers, union mechanics, employees and other independent services providers looking for an acquisition partner.”
William Blair and Kirkland & Ellis LLP served, respectively, as financial advisor and legal counsel to 3Phase and Fort Point Capital. Baird, Lift Business Advisors, and Maven Group served as financial advisors to Berkshire Private Equity on the transaction and Ropes & Gray LLP served as its legal counsel. The transaction is expected to close by the end of June.
About 3Phase Elevator
Founded in 1996, and headquartered in Canton, Mass., 3Phase Elevator is a leading independent provider of elevator and escalator maintenance, repair, and modernization services in 14 states across the eastern United States. The company is built on a foundation of exceptional customer service. For additional information, visit www.3phaseelevator.com.
About Berkshire Partners
Berkshire Partners, a Boston-based firm, has 35 years of investment history. Berkshire Private Equity has made more than 130 private equity investments since its inception and has a strong history of partnering with management teams to grow the companies in which it invests. Stockbridge, the firm’s public equity business, was founded in 2007 and seeks to make public equity investments in high-quality companies with strong competitive positions and long-term growth prospects. The firm invests in business services & technology, communications, consumer, healthcare, and industrials companies. For additional information, and to see a full list of the firm’s private equity investments, visit www.berkshirepartners.com.
About Fort Point Capital
Based in Boston, Fort Point Capital is a private equity firm that invests in lower middle market, services-oriented companies in partnership with strong management teams. Fort Point is currently investing out of its second fund, FPC Small Cap Fund II, L.P. For additional information, visit www.fortpointcapital.com.