PestCo (TSCP) Anchors Southwest Expansion with Acquisition of Arizona’s Best Choice Pest & Termite

PestCo Holdings, the national pest control platform supported by Thompson Street Capital Partners (TSCP), is reinforcing its expansion in the Southwest by acquiring the assets of Arizona’s Best Choice Pest & Termite Services. The move underscores PestCo’s ambition to build a coast-to-coast presence by folding in strong local players, especially in high-growth regions.

Deal Summary

• Acquirer: PestCo Holdings, a portfolio company of private equity firm Thompson Street Capital Partners.
• Target: Arizona’s Best Choice Pest & Termite Services (“ABC”), based in Phoenix, Arizona.
• Business Profile: ABC provides pest control services for both residential and commercial clients in Arizona.
• Strategic Rationale: The acquisition represents a calculated effort by PestCo to deepen its presence in the Southwest U.S., complementing its earlier entry into Arizona.
• Ownership Transition: Shane and Nicole Buntin, the current owners of ABC, expressed confidence that PestCo is the right partner to preserve the legacy and values of their business.
• Sponsor: Thompson Street Capital Partners, a St. Louis–based lower-middle-market PE firm focused on scaling service businesses.
• Terms: Financial terms were not disclosed.

Industry Context

The pest control industry remains heavily fragmented, with many regional operators serving distinct local markets. Consolidators like PestCo are actively executing roll-up strategies to aggregate these businesses, centralize operations, and leverage economies of scale. In particular, the residential and commercial pest service space is attractive because it combines recurring service agreements (e.g., maintenance) with high-value, one-time jobs (e.g., major infestations or termite treatments).

Moreover, consolidators are increasingly prioritizing expansion into geographies with favorable demographic or climatic dynamics. The Southwest, including Arizona, offers particular appeal due to strong population growth, favorable pest control demand year-round, and a mix of residential and commercial opportunity.

Lower-Middle-Market Roll-Up Perspective

From a private equity roll-up standpoint, several strategic themes emerge in this transaction:

1. Geographic Add-On: Rather than building organically, PestCo is expanding into its second business in Arizona, accelerating its market penetration.
2. Legacy Preservation: By acquiring the assets of a locally rooted business, PestCo preserves the craftsmanship, customer relationships, and reputation of an established brand - a common tactic to maintain trust in service-based roll-ups.
3. Platform Synergies: The integration likely leverages PestCo’s centralized infrastructure - from shared back-office systems to procurement and operations - enabling margin improvement and operational consistency.
4. PE Capital Support: With backing from Thompson Street, PestCo can fund strategic M&A while also deploying resources to drive organic growth, talent retention, and customer service excellence.
5. Repeatable Model: This deal follows other PestCo acquisitions (e.g., May Pest in Illinois, Innovative Pest in Texas, Garella in Illinois) indicating a repeatable, disciplined roll-up framework.

Why This Sector Is Attractive for Roll-Ups

• Fragmentation: Many quality local pest control businesses remain independent and founder-operated, providing an extensive deal pipeline.
• Recurring Revenue: Pest control services offer predictable cash flow via service contracts, while termite or infestation jobs provide higher-margin episodic revenue.
• Market Tailwinds: Growth in residential construction, migration trends, and climate-driven pest pressures support long-term demand.
• Operational Leverage: Scaling through acquisition enables platform consolidation of procurement, technology, workforce training, and customer service.
• Capital Efficiency: PE sponsors like TSCP help unify fragmented providers, optimize operations, and drive value without forcing a full buyout culture shift.

Conclusion

PestCo’s purchase of Arizona’s Best Choice Pest & Termite is a clear bet on scaling its pest control footprint in the Southwest through high-quality, value-aligned operators. For PestCo and TSCP, it reinforces a proven acquisition thesis: roll up strong regional brands, deploy platform infrastructure, and earn customer loyalty in new markets. For local pest control founders, it illustrates a path to preserve legacy while accessing capital and scale. And for investors, it reaffirms that pest control continues to be a consolidation-friendly space with resilient demand and strategic runway.