O2-backed 4M buys two commercial cleaning businesses

4M Building Solutions, a commercial cleaning and janitorial services platform backed by O2 Investment Partners, has acquired Bluegrass Commercial Cleaning and Rainbow Maintenance Services, according to PE Hub. The two transactions are the company’s 15th and 16th acquisitions since it partnered with O2 in January 2023, PE Hub reported.

Financial terms were not reported. PE Hub identified Bluegrass Commercial Cleaning as based in Mayfield, Kentucky, and Rainbow Maintenance Services as based in Elgin, Illinois.

The deals add to a consolidation program at 4M, which is headquartered in St. Louis, Missouri. The company was founded in 1978 and operates across 27 states in the Midwest, Northeast, Southeast and West, according to PE Hub.

Acquisitions extend a platform strategy

In private equity, a platform company often serves as the operating base for additional purchases in a fragmented sector. Add-on acquisitions can expand geographic reach, increase local market density or broaden service capacity, depending on the assets acquired and the integration plan. PE Hub did not report operational changes, management changes or integration details for Bluegrass or Rainbow.

Commercial cleaning and janitorial services are part of the broader business services sector, where recurring customer needs can support buy-and-build strategies. The reported acquisitions indicate that 4M has continued to pursue external growth since O2 Investment Partners became its backer in early 2023.

O2 Investment Partners is a private equity firm. PE Hub described 4M as an O2-backed platform, but did not provide details on O2’s ownership stake, the financing used for the acquisitions or the sellers involved in the Bluegrass and Rainbow transactions.

Known transaction details

• Buyer: 4M Building Solutions.
• Backer: O2 Investment Partners.
• Targets: Bluegrass Commercial Cleaning and Rainbow Maintenance Services.
• Target locations: Mayfield, Kentucky, and Elgin, Illinois.
• 4M headquarters: St. Louis, Missouri.
• 4M founding year: 1978.
• 4M footprint: 27 states across the Midwest, Northeast, Southeast and West.
• Acquisition count since O2 partnership: 16, including Bluegrass and Rainbow, according to PE Hub.

The absence of disclosed pricing leaves the valuation and earnings contribution of the two targets unclear. PE Hub’s report also did not state whether the acquired businesses will keep their brands or whether their employees and customers will be folded directly into 4M’s existing operations.

This story draws on original reporting from PE Hub.