Diversified Maintenance Systems, Inc.

The Company

Diversified Maintenance Systems, Inc. (DMSI or the Company) is a leading provider of janitorial and facility maintenance services nationwide. DMSI’s primary services include janitorial housekeeping and floor care services, including carpet cleaning, concrete and tile repair, floor strip and wax service, restroom sanitation, window cleaning, and other interior and exterior project work. The Company serves over 5,000 locations in a variety of industries including retail, education, and food distribution.

The Situation

While the Company continued to experience solid growth and expand throughout the United States, DMSI sought to identify a partner that could help accelerate its growth and increase market share. KPMG Corporate Finance was retained as DMSI’s exclusive adviser to assist in this process. The shareholders desired a partner that would provide liquidity to the shareholders, but also one that offered an excellent track record of success, solid operating experience, a strong network of relationships, and
a shared vision of the potential for the business.

The transaction

KPMG Corporate Finance conducted a competitive, controlled-auction process that generated a number of interested counterparties that could meet the objectives of the shareholders. KPMG Corporate Finance coordinated management meetings and assisted the owners in successfully negotiating a recapitalization of the Company led
by Frontenac Company, LLC (Frontenac), a Chicago-based private equity firm. DMSI represents Frontenac’s platform investment in the facility maintenance services sector.