Progressive Solutions, LLC has been acquired by Asplundh Tree Expert Co.

The Selling Company: Progressive Solutions, LLC is a national leader of herbicide-related vegetation management services, with operations in 23 states. With revenues over $20 mm, the company treats some 220,000 acres annually and operates a chemical distribution business. The pioneering owners have helped shape industry practices that exceed environmental, regulatory, economic, and operational expectations for utility operators, their customers, conservation organizations, and regulatory bodies.

Why the company was sold: The shareholders had combined two related businesses in 2002, and successfully grew the business over time to a point where a larger strategic partner was desired to move the company to even greater levels of sales and profitability through economies of scale and scope. They will remain active with the acquirer as they begin to supply new and growing demand for energy reliability and infrastructure maintenance in the U.S.

Capital Alliance’s Performance: Capital Alliance was engaged after the owners had received an offer to buy the company from a potential acquirer. After confidentially taking the company to market, Capital Alliance was able to increase the cash at closing for the sellers by roughly 75% from their pre-engagement offer.

Terms of the Transaction: The shareholders received a substantial cash payment at closing, attractive employment agreements, and a realistic earn-out agreement that will significantly increase the value of the transaction if operational objectives are met.

The Acquiring Company: Asplundh Tree Expert Co. is one of the world’s largest vegetation management companies with fully integrated operations, around 25,000 employees, and roughly $3 billion in annual revenues. They offer a full suite of services to utility and governmental customers in the United States, Canada, New Zealand, and Australia.