PestCo Bolsters Midwest Reach with Acquisition of May Pest in Illinois

PestCo Holdings, the national pest control platform sponsored by Thompson Street Capital Partners (TSCP), is making a strategic play for broader geographic coverage by acquiring the assets of May Pest, LLC, based in Waterloo, Illinois. The move is a clear signal that PestCo is executing on its build-out strategy in the Midwest, targeting both residential and commercial pest services.

Deal Summary

• Acquirer: PestCo Holdings, a TSCP-backed pest control platform.
• Target: May Pest, LLC, headquartered in Waterloo, Illinois.
• Business Focus: May Pest provides both residential and commercial pest control solutions.
• Geographic Footprint: The acquisition strengthens PestCo’s presence in the Midwest, particularly in Illinois.
• Strategic Rationale: PestCo sees May Pest as a complementary bolt-on to deepen its Midwest operations and to consolidate in a market with strong recurring demand.
• Ownership & Structure: The transaction involves the acquisition of assets rather than a full equity takeover. Terms of the deal have not been publicly disclosed.

Industry Context

Pest control remains one of the more fragmented trades services sectors. Many independent operators serve local markets but lack the scale and infrastructure to maximize growth. For platforms like PestCo, this fragmentation represents a sourcing opportunity: by acquiring regionally strong firms, they can build a national network that leverages centralized operations while preserving local customer relationships.

Moreover, pest control services benefit from recurring revenue through maintenance contracts and inspections, along with episodic, higher-margin work - such as termite treatment or major infestation responses. These features make the sector attractive to consolidators who can deploy capital toward both acquisition and retention efforts.

Lower-Middle-Market Roll-Up Perspective

From a private equity roll-up lens, this deal reflects several key themes:

1. Strategic Add-On: PestCo is not just scaling via new markets; it is targeting well-established providers in geographies where it wants a deeper footprint.
2. Asset-Based Acquisition: By acquiring the assets (rather than assuming entire ownership), PestCo may mitigate integration risk while still gaining control of the business operations.
3. Recurring & Diversified Revenue: May Pest’s mix of residential and commercial work aligns well with PestCo’s model of stable maintenance contracts balanced with higher-ticket jobs.
4. Operational Leverage: The acquisition opens the door for PestCo to apply its platform infrastructure - back-office, operations, technology - to improve service quality and efficiency.
5. Capital Strategy: Supported by TSCP, PestCo is tapping PE capital to fund a disciplined, organic-plus-inorganic expansion without overleveraging.

PestCo’s M&A track record under TSCP supports this pattern. Previous add-ons include Green Mango in Arizona, the Chicagoland Pest Services assets, and Innovative Pest Control in Texas. This consistency suggests a repeatable, playbook-driven approach.

Why This Sector Is Attractive for Roll-Ups

• Highly Fragmented Market: There are many independent operators with strong customer relationships ready for platform consolidation.
• Predictable Cash Flow: Regular service contracts and recurring treatments provide reliable revenue.
• Recurring & Episodic Demand: In addition to routine maintenance, there's a consistent need for remedial treatments (e.g., termite jobs), which is attractive from a margin perspective.
• Operational Efficiency Gains: Merging back-office, procurement, and tech systems can significantly reduce costs.
• Scalable Capital: PE firms like TSCP can provide the financial muscle to fund aggressive add-on strategies without forcing disruptive cultural changes.

Conclusion

PestCo’s acquisition of May Pest underscores its methodical push into the Midwest, reinforcing the company’s national consolidation strategy. For TSCP and PestCo, this deal strengthens their platform with a proven local player and unlocks operational scale. For pest control operators considering an exit, it highlights how partnering with a consolidator like PestCo can provide growth capital, infrastructure, and continuity. And for investors, it reaffirms the enduring appeal of pest control: a fragmented, recurring-revenue business with meaningful scale potential.