FourBridges initiated, negotiated and structured the deal on behalf of Funderburk

CHATTANOOGA, Tenn. (November 12, 2020) — FourBridges Capital announced today the acquisition of Knoxville-based Funderburk Electrical Services (FES) by ICS Holdings (ICS). FourBridges initiated the transaction and negotiated the terms on behalf of Funderburk.

ICS, a portfolio company of Stone Arch Capital of Minneapolis, owns and operates a group of leading electrical maintenance, repair, installation, and construction services businesses in a broad range of process industries. Other companies operating on the ICS platform include Electrical and Instrumentation Unlimited, LLC of Lafayette, La., and South Ark Electric in Hope, Ark.

FES was founded in 2009 by electrical industry veteran and CEO Jack Funderburk. The company has grown to over 170 employees and is licensed to operate in seven states, primarily servicing industrial and commercial clients; its Ace Electric subsidiary services residential customers.

“From the first conversation with Stone Arch and ICS Holdings, we knew we were on the right track,” Funderburk said. “There was a shared vision for the future of our companies, which I appreciated. But most importantly, it was clear that Stone Arch and ICS understood how my wife and I felt about our employees; we knew they’d be taken care of. FourBridges, in conjunction with Randy Smith of Burkhart & Company, led the way for me to make the right financial choices for my family and our company. I could not have had better partners.”

FourBridges, in conjunction with Burkhart & Company, led the way for me to make the right financial choices for my family and our company. I could not have had better partners.”

As part of the transaction, COO Earl Norman will continue to lead FES, reporting to ICS CEO Steve Lyon. Jack Funderburk will retain an equity interest in the ICS platform.

“One of the most rewarding parts of our job is finding a buyer who is truly a perfect fit for the seller we’re representing,” said Andy Stockett, managing director at FourBridges. “After conducting a broad marketing process, it was clear FES and ICS/Stone Arch were aligned on everything — from corporate philosophy to culture to growth goals. We really enjoyed watching the chemistry evolve between the two companies.”

“We are thrilled to have Funderburk Electrical Services join the ICS team,” Lyon said. “Jack built a tremendous organization, and we’re excited to have Earl Norman and his talented management team join us in building one of the country’s leading providers of electrical and instrumentation services.”

The FourBridges team of Andy Stockett, Chris Rowe and Clay Stockett acted as exclusive M&A advisors to Funderburk, Randy Smith of Burkhart & Company provided financial advisory and transaction services, and Mike Rubinger and Seth Webster of Nelson Mullins acted as legal counsel.