Levine Leichtman Capital Partners Joins Forces with ENTRO Service for Growth Initiative

Levine Leichtman Capital Partners' Strategic Investment in ENTRO Service

In a significant move toward expanding its portfolio, Levine Leichtman Capital Partners (LLCP), a prominent global middle-market private equity firm, has announced its partnership with ENTRO Service GmbH (ENTRO). This collaboration involves a majority stake acquisition in ENTRO Service by LLCP, alongside the company's founders Claudio Tubach and Philipp Westphal, although the financial details of this transaction have not been disclosed.

Founded in 2022, ENTRO specializes in providing a comprehensive range of services, including testing, inspection, repair, and installation for entrance, fire safety, and access control systems. The company has established itself as a key player in its sector, offering a holistic and OEM-independent service portfolio that caters to over 4,500 clients. With a headquarters in Hamburg, Germany, ENTRO boasts a nationwide presence supported by 16 locations and a workforce of more than 170 technicians, enabling the company to meet the increasing regulatory demands for operational safety while enhancing operational efficiency.

Philipp Westphal, one of the founders and the Managing Director of ENTRO, expressed excitement over this partnership with LLCP, highlighting that it marks a new chapter for the company's growth trajectory. He stated, “Over the last several years, we have built ENTRO into a leading technical service provider serving a substantial base of blue-chip B2B clients. We have differentiated ourselves by providing nationwide coverage paired with high agility and innovation leadership.” The focus will be on expanding ENTRO's service offerings across key areas while maintaining a disciplined approach to core services, which include non-discretionary, highly recurring maintenance and repair operations.

Claudio Tubach, another founder and Managing Director, echoed Westphal's sentiments and emphasized the importance of the investment from LLCP. He noted, “We are thrilled to partner with LLCP to further accelerate our successful organic and inorganic growth strategy in our core segments. This investment will provide ENTRO with significant capital, as well as supportive resources and expertise from LLCP to propel our ambitious growth plans beyond the DACH region and position us as a European leader in our field.”

Josh Kaufman, Head of Europe at LLCP, commented on the attractiveness of ENTRO's market environment, which is bolstered by strong regulatory support and ripe for consolidation. Kaufman noted the firm's extensive experience with route-based service businesses significantly influenced their decision to invest in ENTRO. He emphasized their commitment to utilizing their sector expertise and value creation strategies to support the management team's objectives effectively.

Furthermore, Matthias Tabbert, Head of DACH at LLCP, expressed pride in partnering with the ENTRO leadership team. He stated, “We look forward to leveraging our local presence and pan-European footprint to support ENTRO’s ambitious growth plans.” He affirmed that the company would continue to be led by its founding members along with a strong management team comprising CEO Sonja Foremny and COO Jan Ingo Buschmeyer, ensuring continuity in leadership during this transformative phase.

The advisory team for LLCP included Carlsquare for debt financing, Fortlane for commercial advice, Alvarez & Marsal for financial and tax perspectives, HZ for operational guidance, and Milbank for legal counsel. This well-rounded support is poised to pave the way for ENTRO’s next phase of expansion and innovation.

About Levine Leichtman Capital Partners

Levine Leichtman Capital Partners is recognized as a global middle-market private equity firm with a 41-year history of investment across various sectors, including Business Services, Franchising & Multi-unit operations, Education & Training, and Engineered Products & Manufacturing. LLCP employs a unique Structured Private Equity investment strategy that combines debt and equity investments, providing management teams with growth capital through a highly flexible and tailored investment structure. Their objective is to offer a more appealing alternative than traditional private equity channels.

With around $18.1 billion of capital managed since inception and approximately 120 portfolio companies, LLCP continues to maintain a strong presence in the investment landscape, with offices across major cities, including Los Angeles, New York, and Frankfurt, overseeing approximately $12.7 billion in assets at present.

Overall, this strategic investment is not just a significant financial transaction; it signals a forward-thinking approach to growth and development in the increasingly complex service market, positioning ENTRO Service for a successful future under the expert guidance of Levine Leichtman Capital Partners.