Target Information

KMI Sports Construction is a premier firm specializing in the design and construction of high-quality athletic fields and facilities. The company has built a solid reputation for its exceptional craftsmanship and comprehensive service, catering to sports associations, educational institutions, and municipalities across Texas and the broader United States. With leadership from CEO Sean Kincaid and COO Rob Johnson, KMI has experienced remarkable growth in 2024, driven by a strong demand for its services and innovative projects.

As a market leader, KMI emphasizes superior workmanship and dependable service, positioning itself to capitalize on expanding opportunities in the athletic field market. The company has undergone significant transformations to meet increasing demand, translating its commitment to excellence into record growth last year.

Industry Overview in Texas

The athletic field construction industry in Texas is characterized by a limited number of specialized providers who have the required qualifications and proven project experience. Major clients, including schools and municipalities, are investing in the construction of new facilities and the renovation of existing ones due to ongoing population growth throughout the state. This trend presents a robust opportunity for experienced companies such as KMI to enhance their market position.

The total addressable market (TAM) for athletic field construction in Texas is estimated to be nearly $500 million, highlighting the vast potential for companies operating within this niche. As urban areas continue to expand and communities grow, the demand for state-of-the-art athletic facilities is expected to rise significantly.

Moreover, as health and wellness initiatives gain traction, municipalities and organizations are prioritizing investments in recreational facilities that promote an active lifestyle. This shift further fuels the need for quality athletic spaces, paving the way for KMI's continued expansion and influence within the industry.

Rationale Behind the Deal

The strategic partnership with Sundance Partners represents a transformative opportunity for KMI Sports Construction. With the infusion of capital and expert guidance from Sundance, KMI aims to leverage this investment to expedite its growth trajectory, enhance its market presence in Texas, enter new markets, and pursue selective acquisitions.

CEO Sean Kincaid emphasizes that this collaboration will bolster KMI’s ability to maintain its commitment to quality and reliability while undertaking larger and more ambitious projects. The synergy between KMI's proven capabilities and Sundance's investment acumen sets the stage for strategic development and expansion.

Investor Information

Sundance Partners is a private equity firm dedicated to fostering growth through strategic investments in lower middle-market companies. With a focus on identifying promising opportunities, Sundance excels in guiding firms toward sustainable growth and enhanced operational effectiveness. The firm's deep understanding of the market, particularly in sectors such as construction and development, makes it a valuable ally for KMI.

Matt Lynch, the founder of Sundance Partners, is passionate about investing in businesses that have a significant positive impact on their communities. Under Lynch’s leadership, Sundance seeks to cultivate partnerships that align with shared values and goals, enabling joint success in competitive markets.

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From an investment perspective, the partnership between KMI Sports Construction and Sundance Partners holds great potential. KMI's established reputation, combined with the expansive growth opportunities within the Texas athletic field construction market, positions the company for continued success. Furthermore, with a substantial TAM of approximately $500 million, KMI is poised to capture significant market share and expand its influence regionally and nationally.

Additionally, the trend toward investing in recreational sports facilities underscores the overall viability of this deal. As communities increasingly prioritize health and wellness, KMI’s ability to deliver top-tier athletic fields aligns with market demands, potentially leading to sustained revenue growth.

Ultimately, the investment by Sundance Partners not only provides KMI with the resources necessary for expansion but also signifies a shared vision for redefining athletic field construction standards. Given these factors, KMI's trajectory appears promising, and the collaboration could indeed be a transformative advantage for both entities in the long run.

In conclusion, the deal is expected to enhance KMI's operational capacity and market reach, underscoring the firm's commitment to excellence within the athletic field construction industry.

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