Argosy Private Equity Takes Control of Federal Rent-A-Fence, Eyes Expansion

Argosy Private Equity

WAYNE, PA — In a strategic move to deepen its footprint in the rental equipment market, Argosy Private Equity announced its acquisition of a controlling interest in Federal Rent-A-Fence, LLC, a leading provider of temporary fencing solutions for construction sites and events. This acquisition marks a significant step for Argosy, spotlighting the firm’s commitment to investing in companies with strong growth potential and a solid operational foundation.

Founded in 1993 in West Berlin, NJ, by Sue and Rob Orthey, Federal Rent-A-Fence has grown into one of the largest entities in its sector, boasting 15 branches across the East Coast and Midwest. The company’s success lies in its diverse product offerings, including post-driven and panel chain-link fencing, gate frames, windscreens, and other site preparation accessories. A focus on quality service, fence availability, and timely installation and removal has earned Federal a loyal customer base, with repeat customers accounting for approximately 90% of its revenue. This loyalty underscores the company’s robust market position and lack of significant customer concentration—a key factor in its consistent performance.

Don Charlton, Partner at Argosy Private Equity, highlighted the acquisition’s strategic importance. “Federal is a widely known name in the industry… We believe this, coupled with the people-first culture the management team has fostered, positions the Company well for additional growth opportunities,” Charlton said. Argosy’s experience in the rental equipment industry is expected to play a pivotal role in Federal’s next growth phase.

Rob Orthey, Founder of Federal, expressed enthusiasm about the partnership with Argosy, emphasizing the company’s longstanding commitment to delivering superior customer service and tailored solutions. The partnership is poised to build on Federal’s three-decade legacy, focusing on expanding its reach and enhancing its service offerings.

Argosy plans to implement its Value Acceleration Methodology (VAM™) to drive value creation across several key business areas. Initiatives include professionalizing sales and marketing processes through digitization, strategic planning, and building a dedicated sales team. These efforts aim to capitalize on Federal’s strong market position and customer relationships, paving the way for regional expansion and fleet growth through strategic acquisitions.

John Broderick, Operating Partner at Argosy Private Equity, expressed excitement about leveraging Federal’s established culture and reputation to unlock new growth avenues. “We are thrilled to partner with Joe Orthey and the entire Federal Rent-A-Fence team…we are excited to invest in this business and unlock new potential,” Broderick stated.

The acquisition of Federal Rent-A-Fence by Argosy Private Equity signifies a noteworthy development in the rental equipment and construction services industry, signaling potential shifts in market dynamics and offering insights into the strategic approaches private equity firms are adopting to foster growth and innovation in their portfolio companies. As Argosy embarks on this partnership, the industry watches closely to see how this collaboration will influence the broader landscape and set new benchmarks for success.

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