Cyprium Partners has completed a subordinated debt investment in Kustom US, Inc., to support the acquisition of Zion Restoration Inc. and provide capital for future acquisitions. This recent investment from Cyprium Investors V, marks the group's 92nd investment during its 22-year history and second since the beginning of the COVID-19 crisis.
Kustom US is one of the leading property restoration companies in North America, providing 24-hour emergency response, full-service property restoration, and turn-key reconstruction services to commercial and residential customers. The Orlando, Florida based company has locations across nine states and serves property owners, managers, and insurers in response to fire, water, wind, environmental, mold, and structural damages caused by weather, system failure, or other incident. Projects range from simple remediation of damage events to complex commercial rebuilds with mission critical timelines for return operations.
Zion, based in Pasco, Washington, is a water and mold remediation business serving the Pacific Northwest. It represents Kustom's eighth add-on acquisition and will complement Kustom's existing operations in the region. The transaction closed on July 1.
"It is important to keep Kustom a privately owned and controlled company to execute its long term strategic growth plan. The completion of the transaction with Cyprium Partners and the addition of mezzanine financing provides additional capital and flexibility to continue Kustom's long term strategic growth plan on a non-control basis. We have always been selective as to who we do business with, and both Cyprium and Kustom are Midwest founded firms, sharing similar cultural fit and values," said Andrew Zavodney, CEO of Kustom US, in a statement.