Cleaning companies catch private equity’s attention

The janitorial sector has re-emerged as a target for private equity, after sponsors paused on the industry to see whether the boom in pandemic-era demand and earnings growth would hold up over the long term. The sector has emerged again as an essential service that is not going away. The janitorial sector has seen investments from PE firms of all sizes, a sign of the growing appeal of the cleaning business, especially those serving big institutions like schools, retail, commercial offices, healthcare facilities, and data centers. O2 Investment Partners has a portfolio company called 4M Building Solutions, a commercial cleaning and janitorial services platform based in St. Louis, Missouri. The company recently acquired Bluegrass Commercial Cleaning, a Mayfield, Kentucky-based company and Rainbow Maintenance Servi. GI Partners is also among firms investing in the janitorial and wider facilities management sector.