Brown Gibbons Lang & Company (BGL) is pleased to announce that its client Tenex Capital Management (Tenex) has acquired Progressive Employer Management Company (PEMCO). BGL served as an advisor to Tenex on a number of aspects of the transaction. Specific terms of the transaction were not disclosed.
The transaction represents another successful engagement for BGL’s Business Services practice, which has been involved in the three largest deals in the professional employer organization (PEO) industry during the last ten months.
Based in Sarasota, Florida, PEMCO is a leading nationwide PEO that provides outsourced human resources solutions, including payroll administration, workers’ compensation, employee benefits, and human resource management. Through a combination of organic and acquisition growth, the company has established itself as a major player in the PEO industry. Under its ownership, Tenex plans to grow PEMCO through continued organic growth and additional add-on acquisitions.
Clifford Sladnick, head of BGL’s Business Services practice, led the engagement with Tenex. Sladnick’s experience in the PEO industry spans more than ten years, having previously served as an executive officer at Gevity HR, then the largest PEO in the country. Commenting on the transaction, Sladnick said, “The PEO industry has reached an inflection point in growth and market penetration, as regulatory complexity and an improving labor market fuel demand for outsourced services in a largely untapped small and medium-sized business market. PEMCO is well-positioned to capitalize on this growth and increase its market penetration, and we look forward to assisting Tenex in identifying additional quality PEOs to grow its business.”
Tenex Capital Management is a private equity fund that makes control equity investments in middle market companies. Tenex utilizes an in-house team of hybrid professionals skilled in operational leadership, investing and capital markets structuring to maximize long-term value creation. Tenex’s deep operating experience allows the firm to collaborate with management teams to create solutions to business, customer, and market challenges as well as situations brought on by capital limitations. Tenex avoids excessive leverage, relying on operational improvements to generate its investment returns. Tenex has established a successful track record investing in diverse industries, including transportation, industrials, manufacturing, telecommunications, and health and business services. For more information, please visit www.tenexcm.com.