Hastings News

Hastings Equity Partners Completes the Sale of Code Red Safety to Warren Equity Partners

September 2022

BOSTON, MA (September 20, 2022) – Hastings Equity Partners (“Hastings”), a preferred capital partner to founders of lower middle market businesses, is pleased to announce it has completed the sale of Code Red Safety (“Code Red” or the “Company”), a leading provider of safety equipment and solutions supporting the mission-critical safety needs of industrial facilities throughout the US, to Warren Equity Partners.

In July 2019, while pursuing investments in the industrial safety space, Hastings partnered with the founders of Code Red, Mike Miller and Rob Tepperman, and industry executive, Nick Mowbray, to recapitalize Code Red and acquire and integrate two strategic add-on acquisitions: Critical 2-Way Communications and Turnaround Logistics. The combination of the three companies has resulted in a scaled operation, filling a void in the middle-market left by the consolidation of several competitors in prior years.

Throughout Hastings’ three-year investment, the Company's revenues have increased 30% and EBITDA doubled. Notable improvements include:

• Expanding the capabilities of the business while maintaining the strong culture and adherence to core values established by the founders of Code Red
• Building an executive management team and establishing a Board of Directors, including two independent directors with extensive experience in safety technology and facility services
• Restructuring the sales team and developing a national accounts model to support blue-chip sales efforts while reducing exposure to high-risk, lower-margin staffing operations
• Expanding service offerings to include:
- a new Turnaround Division, strengthening the existing equipment rental business,
- a new Technology Team, automating higher risk processes normally performed by field personnel,
- an in-plant store model, maintaining constant interaction with key customers and earning a vendor of choice designation, and
- a fire safety division, providing in-plant fire services on the Gulf Coast and forest fire protection on the West Coast

“Safety continues to be paramount in every company in which we invest and the markets they serve,” said Joe Conlon, Managing Director at Hastings. “We were honored to partner with the executive management team at Code Red to accelerate growth and expand geographic reach. The Company significantly increased revenue and earnings over the past three years. We have enjoyed every day of our partnership with the entire Code Red team, and we look forward to watching the Company’s future success.”

“Hastings has been supportive and connected to our vision, values and approach to scale since the onset,” said Nick Mowbray, CEO of Code Red. “We were excited to partner with Hastings because of their partnership approach, operational focus, and boots on the ground mentality. Together, we have transformed a founder-led company to a middle market powerhouse and are grateful for the collaboration and authentic relationship we have built with Hastings. They helped expand our service offerings and transform our clientele, creating a resilient and first-class company.”