Transactions & News

The Bottom Line: NewSpring Invests in Traffic Safety Solutions

NewSpring, a family of private equity strategies, today announced that NewSpring Mezzanine, the Firm’s dedicated mezzanine strategy, has invested subordinated debt and equity to support Calvert Street Capital Partners’ acquisition of Traffic Safety Solutions Holdings, LLC (“Traffic Safety”).

The Company is a platform established to acquire market leading providers of traffic safety services

Traffic Safety was established to acquire market leaders within the traffic safety services market in the Midwest region. It is initially comprised of D2K Traffic Safety, Inc. (“D2K”), headquartered in Naperville, Illinois. Traffic Safety provides an array of services, specializing in traffic control, pavement marking, signing, and flagging. This diversified and complimentary service offering makes Traffic Safety a one-stop-shop for customers.

Traffic Safety operates in a fast-growing, fragmented market with opportunities to expand

Most local traffic safety services providers are small and family-owned, establishing a strong pipeline of acquisition targets that would help Traffic Safety expand its service offerings, scale, and geographic reach. There is also significant opportunity for growth within existing markets by capitalizing on public and private investments in traffic safety services.

“Our mission has always been to keep people safe with our robust portfolio of complimentary traffic safety services. By focusing on exceptional customer service, we’ve been able to forge longstanding relationships with a growing set of general contractors in the Midwest. We’re excited to partner with NewSpring and Calvert Street Capital Partners and elevate our business to new levels of growth.”
— Traffic Safety Operating Partner and interim CEO Kathi Holst

Demand for traffic safety services is on the rise due to historic levels of investment

Traffic safety services are critical to keeping motorists and pedestrians safe, and demand for services is likely to grow with the significant federal and state investment levels in maintenance, rehabilitation, and expansion of old, existing infrastructure. The Infrastructure Investment and Jobs Act, which took effect nearly a year ago, includes a $450 billion budget for highway, bridge, public transportation, and safety improvements with roughly $304 billion dedicated to support roads and bridges.

Traffic Safety is led by a strong, highly experienced management team

Operating Partner and interim CEO Kathi Holst has more than 40 years of industry experience and has served as an advisor to D2K since its founding in 2013. She is supported by President Mark Long, an industry veteran, and a robust team of operations managers dedicated to expanding the Company’s services and footprint in the Midwest region.

“Traffic Safety has a strong foundation in D2K with its history of exceptional growth and diversified portfolio of services that stands out from other providers of traffic safety services in the Midwest region. Operating in the high demand traffic safety services market, Traffic Safety is poised for growth and we’re eager to work with Kathi and Calvert Street Capital Partners to deliver these critical services in new markets."
— NewSpring General Partner, Greg Barger

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