The Potomac Company is pleased to announce the acquisition of its client, JP McHale Pest Management, Inc. by Anticimex.
Anticimex continued expansion in the U.S. with the acquisition of JP McHale Pest Management, operating in the greater New York area. With the acquisition, Anticimex further strengthens its market position on the East Coast as well as the strategic New York area. JP McHale ranked 34 on last year’s PCT Top 100 list and is currently generating $25 million per annum in revenue.
Commenting on today’s announcement, Mikael Vinje, regional president of Anticimex North America, said, “Partnering with the team at JP McHale, marks another important milestone in our strategy to expand in the U.S. JP McHale has a long and proud history as a leading provider of high-quality pest control services and has an impressive track record of growth. Their strong entrepreneurial culture and relentless focus on customer experience is very much aligned with Anticimex’ DNA and we are very excited to accelerate our growth in the greater New York area further.”
Jim McHale, CEO of JP McHale Pest Management, said, “After developing brand equity for over thirty years, as a family owned and operated entity, I truly believed it was time to mobilize JP McHale Pest Management Inc. towards a new high water mark. After entertaining several interested Private Equity firms, I was introduced to Mikael Vinje from Anticimex Group. After a few meetings with the Anticimex team, it became clear, Anticimex brings the necessary resources to compete, scale and deliver in this highly commoditized marketplace. Armed with an aggressive US market plan, it was a perfect fit. Their core values, decentralized business model and global footprint unlock a tremendous amount of opportunities for our team members. Our brand, leadership, indigenous market strategy and relentless pursuit of the ultimate client experience will continue. I am truly energized about the future with our new Anticimex Group family.”
JP McHale Pest Management was founded by James McHale, Sr., a son of Irish immigrants, who began his career as a corrections officer at New York’s Sing Sing maximum security prison. In the 1960s, James Sr. started a side business – beer tap cleaning – to augment the family’s income. While running his beer tap cleaning business, he began working with another Sing Sing guard, who had a side business of his own – a pest control company.
James Sr. worked side-by-side with his friend for a few years and ultimately took over the pest control company and incorporated it as JP McHale Exterminating Service in 1971, when he sold off his beer tap cleaning business.
James Sr’s eldest son, Jim, began work for the business part-time in the early 1980s while in high school. He became a full-time employee in December of 1988 after graduating from Cornell University with a degree in entomology.
Over the years, JP McHale Pest Management, under CEO Jim McHale’s leadership, has grown to become one of the highest margin pest control companies in the country and a leader in pest management in the New York tri-state area generating $25 million per year in revenue and employing over 160 people.
Commenting on the transaction, Paul Giannamore of Managing Director of Potomac said:
“On average, I execute two pest control transactions a month so I’ve seen the inside of a lot of pest control businesses over the years and spend a tremendous amount of time with their founders. Jim McHale is one of the most innovative and dynamic professionals in the industry.
I’ve had the pleasure of advising JP McHale for almost a decade and have watched as one acquirer after the next has attempted acquire JPM. Back in 2012, when Scotts LawnService was attempting to get into the pest control industry, the President of Scotts said to me, ‘I really want JP McHale Pest Management, but I absolutely must have Jim McHale to lead our national pest control business.’
At the time, he offered JPM the highest multiple I had ever seen for a pest control business, but Jim stayed the course, focusing on his people and his customers, he doubled the size of the business over the next seven years.
Today’s transaction is the start of a new chapter in growth for one of the most intelligent, hard-working, generous and genuine leaders in this industry and an outstanding move by Anticimex. I am thrilled for Jim and Jennifer, his brothers Doug and Rich, and their families. What Jim has accomplished at the helm of JP McHale, taking it from his father’s small, one-route business to the East Coast powerhouse that it is today, would certainly make his father, James Sr., very proud today.”
Jim McHale commented on working with Potomac:
“Having worked with Paul Giannamore, and his Potomac team, for over ten years, it became very clear how strategic, complex and invasive these acquisitions can be. Throughout this process Paul was patient, measured and task minded. I have killed many deals for him, waiting for that perfect fit. Paul should have dumped me a long time ago. At days end, we ultimately pushed a deal into the endzone. His persistence paid off. Paul is a smart, tenacious professional, more importantly, a trusted friend and advisor.”
Doug McHale, one of the shareholders of JP McHale, said: “When deciding to sell our family pest control business after 35 years, we knew it would be a complicated and emotional process. Paul Giannamore of Potomac provided the comfort and experience that only a true professional could. Paul was present every step of the way maximizing the value of JP McHale and addressing the insane amount of little details in the process. His knowledge of the industry is second to none, but more importantly he’s a true M&A banker, and not someone who merely dabbles in the extremely complicated and high stakes arena of mergers & acquisitions. I give Paul the highest recommendation possible, you should get to know him today if you don’t already.”
Paul Giannamore of The Potomac Company advised the Company on its sale to Anticimex. Cory Vargo, Partner at Wipfli, advised the Company on tax and Michael Helsel, partner at Greenberg Traurig’s Manhattan office was legal advisor to the Company.