Arcapita, the global investment firm, announced today that is has acquired a controlling interest in MC Sign Company (“MC Sign” or the “Company”), the leading nationwide provider of signage and lighting services in the United States, for a total transaction value in excess of $100 million.
Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “We are excited to complete a US private equity transaction and pleased to partner with the management team at MC Sign to help grow the Company’s suite of services and customer base. MC Sign is led by a very experienced team of professionals who have grown the business considerably over the past few years, and we believe the Company is well positioned to acquire market share in a highly fragmented industry that is dominated by locally-focused, sub-scale service providers. Over 75% of MC Sign’s customers are blue chip companies with national presence and, attesting to the Company’s value proposition, MC Sign has averaged an industry-leading customer retention rate of 99% since 2012.”
Martin Tan, Arcapita’s Chief Investment Officer, said, “MC Sign acts as a comprehensive one-stop-shop for customers, eliminating the need to manage multiple relationships with local vendors across diverse geographies. This is especially beneficial for companies with a national or regional footprint. We believe the Company has significant potential to grow organically and through acquiring smaller regional service providers. Given the repeat nature of customer demand, MC Signs also benefits from a sizable and growing recurring revenue base. We are excited to bring this opportunity to our investors and are optimistic about the Company’s growth prospects.”