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APi Group will spend $570 million to expand into the elevator and escalator business.

The New Brighton-based company is acquiring Elevated Facility Services Group, a Tampa, Fla.-based business with about 600 employees across 18 states.

Elevated is APi's largest acquisition since it paid $3.1 billion to buy Chubb's fire and security business.

Elevated does about $220 million in annual sales through mostly contractual maintenance and repair services. Its margins are higher than the average of APi's other businesses, so the move aligns with long-term shareholder value goals.

Elevated also matches a key strategy of APi — to cross-sell services from inspection and monitoring services to repair and maintenance services across its portfolio.

APi provides life safety, security and specialty services to construction and construction-related industries through dozens of operating companies. It has about 29,000 employees and last year generated $6.9 billion in total revenue, a 5.6% increase over the previous year.

The elevator and escalator services industry is highly fragmented, and APi believes the addition of Elevated can be used for further expansion into a total market they estimate is greater than $10 billion.

"We have long viewed the elevator and escalator service market as very attractive," said Russ Becker, APi's chief executive. "We believe Elevated is the perfect opportunity for APi to expand into this adjacent and attractive market, creating a platform from which to execute our bolt-on M&A strategy."

Elevated was owned by L Squared Capital Partners a Newport Beach, Calif.-based investment firm whose portfolio includes holdings in education, technology and services companies. L Squared initially invested in the elevator and escalator services business in 2017 and has added several smaller elevator and escalator companies since.

"APi is well known as a long-term owner of businesses, with a reputation of caring for and developing its team," said Matt Biskaduros, Elevated's CEO. "Partnering with APi will provide us with a perfect platform on which to invest in our business and grow."

The deal still requires some regulatory approvals but is expected to close in the second quarter of 2024.