Arkabata Group Holdings Ltd. (“Arkabata”), a leading global alternative investment firm, has announced its acquisition of a majority stake in C&K Paving (“C&K” or “the company”), a major provider of parking lot maintenance services in the United States. The CEO and founder of C&K will retain a minority stake and continue to manage the company.
In the past twelve months, Arkabata has completed the acquisition of three private companies in the commercial services sector, totaling $715 million. This is part of their strategy to expand their portfolio in essential commercial services, focusing on sectors that provide stable and recurring revenues while being adaptable to economic fluctuations.
The parking lot maintenance sector in the U.S. is valued at approximately $14 billion annually, benefiting from continuous demand and regulatory conditions, and is less vulnerable to economic volatility. Despite the significant growth in this sector, it still possesses ample opportunities for expansion, particularly as larger companies seek to geographically broaden their services.
C&K offers extensive parking lot maintenance services, including asphalt and concrete surface repairs, line painting, asphalt sealing, and various other preventive maintenance services to ensure the safety of parking facilities. The company is among the largest players in a market with substantial growth potential, managing an extensive network of contractors across the United States. Their client base includes reputable firms in retail, property management, food service, and finance, with an average long-term relationship of around eight years with their top ten clients.
Hisham Alraee, CEO of Arkabata, stated, “C&K, along with similar companies, is a cornerstone of our investment strategy in the essential commercial services sector, characterized by robust business models, regular demand for services, diverse clients, and promising growth opportunities in underutilized markets. With Arkabata’s support, C&K will be able to grow, expand, and solidify its position while continuing to deliver the reliable services that its clients have come to depend on.”
Neil Carter, Managing Director of Private Equity Investment in the U.S. for Arkabata, added, “We are excited about this partnership with C&K’s CEO, Don Cook, and his team. The company has a strong market position and a distinctive business model that minimizes dependence on assets, along with a proven track record of accomplishments and ongoing success, making it a perfect addition to our investment portfolio. C&K has consistently achieved annual revenue growth in its core services since its inception, reflecting the strong reputation established by Don Cook and his team in the market. We see promising opportunities to further accelerate this growth while maintaining the high standards of service the company is known for.”
Don Cook, president and founder of C&K Paving, remarked, “Partnering with Arkabata is a pivotal moment for C&K. Over the past twenty years since the company was founded, we have built a leading platform based on quality, trust, and long-term relationships with our clients. With Arkabata’s support and expertise, we are now positioned to expand across the United States, pursue strategic acquisitions, and improve our offerings to provide the best services for our customers. We look forward to enhancing the value this partnership brings to our business and clients.”
It is notable that Raymond James provided exclusive financial advisory services to C&K Paving.