Rose: Paving Merger with Atlantic Southern Boosted by Churchill Investment
Deal News | Jan 13, 2025 | Churchill Asset Management LLC
Churchill Asset Management LLC has announced a strategic second lien debt and minority equity investment to support Tenex Capital Management in orchestrating a merger between Rose Paving and Atlantic Southern Paving. The merger, set to create one of the largest self-performing paving companies in the U.S., promises enhanced national coverage, brought about by their combined strengths in brand recognition, financial profile, and geographic reach. Churchill, an affiliate of Nuveen and TIAA's asset manager, with substantial committed capital, played a pivotal role by furnishing flexible capital solutions crucial for this transaction's success. Tenex Capital Management, a New York-based private equity firm deftly leveraging its middle-market operational expertise, expressed eagerness in the successful collaboration with Churchill during this significant merger. The merger underscores a strategic alignment aimed at achieving an industry-leading, customer-focused company. Both Churchill and Tenex have extensive history and experience, with Churchill committed to providing middle-market financing solutions and Tenex actively investing through its $1.9 billion Fund IV across robust industrial sectors.
Sectors
- Private Equity
- Construction
- Investment Management
Geography
- United States – The geographical focus is primarily the U.S., as it pertains to middle-market investments and the subsequent merger impacts in the paving industry.
- New York – Tenex Capital Management is based in New York, emphasizing the strategic region for this private equity firm's operations in the U.S.
Industry
- Private Equity – The investment by Churchill Asset Management and Tenex Capital Management is a significant private equity transaction aimed at merging two strong entities in the paving industry.
- Construction – The merger of Rose Paving and Atlantic Southern Paving represents a major development within the construction sector, particularly in the subsector of paving services.
- Investment Management – The article highlights a significant investment and strategic financial arrangement, which are central to the operations of Churchill Asset Management in supporting private equity sponsors.
Financials
- $1.9 billion – Fund IV size of Tenex Capital Management currently being invested.
- $52 billion – Over $52 billion of committed capital managed by Churchill Asset Management.
- $78 billion – Nuveen Private Capital, which includes Churchill, manages a $78 billion private capital platform globally.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Churchill Asset Management LLC | Financial Backer | Company | An investment firm affiliated with Nuveen, providing customized financing solutions to private equity sponsors and portfolio companies. |
| Rose Paving | Target Company | Company | A paving company and portfolio of Tenex, involved in a strategic merger with Atlantic Southern Paving. |
| Atlantic Southern Paving | Target Company | Company | A paving company merging with Rose Paving to form a large self-performing entity. |
| Tenex Capital Management | Sponsor/PE Firm | Company | A New York-based private equity firm specializing in middle-market investments, managing the merger of Rose and Atlantic Southern. |