Target Company Overview

KMI Sports Construction is a premier provider of athletic field design and construction, known for its exceptional craftsmanship and quality service. Based in Austin, Texas, the company serves a wide array of clients, including sports associations, educational institutions, and municipalities across the United States. Under the leadership of CEO Sean Kincaid and COO Rob Johnson, KMI has established a strong reputation for producing durable and visually stunning athletic facilities. Following record growth in 2024, KMI is strategically positioned to capitalize on ongoing demand for high-quality sporting venues as it enters a new phase of expansion.

Industry Overview in Texas

The athletic field construction industry in Texas is characterized by a limited number of specialized providers that possess the necessary qualifications and project history to execute large-scale endeavors. With a total addressable market (TAM) of nearly $500 million, significant opportunities exist within the state as schools, municipalities, and private organizations increasingly pursue the construction of new facilities and the renovation of existing ones. This trend is particularly pronounced in regions experiencing population growth, where demand for state-of-the-art athletic facilities is on the rise.

There has been a notable increase in the investment towards building professional-grade sports venues, indicative of the growing appreciation for sports and recreation within the community. Facilities such as multi-purpose fields, running tracks, and complex sports arenas are being prioritized by stakeholders looking to enhance the quality of sporting experiences. This creates a favorable environment for companies like KMI to thrive and expand their market presence.

Moreover, the post-pandemic recovery has led to a renewed focus on community engagement and physical activity, which is expected to further accelerate the demand for high-quality athletic infrastructure. The combination of heightened awareness surrounding health and wellness, along with increased funding for school and community sports programs, positions KMI effectively within a buoyant market.

Rationale Behind the Deal

The strategic investment from Sundance Partners is intended to facilitate KMI's expansion throughout Texas and into new markets while simultaneously pursuing targeted acquisitions. With substantial resources and expertise, Sundance aims to support KMI's goal of delivering superior athletic facilities. This partnership provides KMI with the necessary capital to undertake ambitious projects and enhance its operational capabilities, thereby increasing its competitive edge in the industry.

As KMI continues to see explosive growth, adding operational and market reach through this investment is essential for maintaining its trajectory. By leveraging Sundance's extensive industry experience, KMI is well-positioned to redefine the standards of athletic field construction nationwide.

Investor Profile

Sundance Partners is a private equity firm located in Washington, D.C., specializing in lower middle market growth buyouts. The firm is managed by a team of experienced investors, advisors, and operators who are adept at scaling companies with the potential for accelerated growth. Sundance Partners provides not only the capital needed for expansion but also deep industry insights and operational expertise, making them a valuable partner for businesses like KMI seeking to maximize their potential.

Sundance is an affiliate of District Capital Partners, LLC, and focuses on collaborating with outstanding teams to drive significant value creation. The firm’s approach emphasizes support for businesses that demonstrate strong growth potential, as evidenced by its partnership with KMI Sports Construction and its commitment to the advancement of the athletic field construction sector.

View of Dealert

Evaluating the investment from Sundance Partners into KMI Sports Construction indicates a promising alignment of goals and capabilities that could lead to substantial returns. KMI's established reputation, combined with a burgeoning market for athletic facilities, paints a positive picture of future growth. Sundance’s investment provides KMI with the financial support needed for scaling operations while offering strategic guidance to navigate market complexities.

Moreover, the athletic field construction industry is projected to thrive given the increasing emphasis on community sports and physical activity across the nation. KMI’s focus on quality and design puts it in a strong position to capitalize on these trends, which bodes well for the sustainability of both the investment and the firm’s growth trajectory.

This partnership could redefine KMI's operational capabilities and broaden its service areas, creating additional revenue streams that leverage both organic growth and strategic acquisitions. Overall, the collaboration appears to be a sound investment, enabling KMI to exert greater influence over the athletic construction landscape while enhancing community engagement through top-tier sporting facilities.

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