FFL Partners Completes Investment in ProService Hawaii

advanced career technologies

Firm Builds on HR Services Expertise

SAN FRANCISCO – November 8, 2017 — FFL Partners (“FFL”), a private equity firm focused on growth investments in middle market companies, today announced that it has completed a majority investment in ProService Hawaii, (“ProService,” or “the Company”), a provider of outsourced human resources services. ProService CEO and President Ben Godsey and the management team have invested alongside FFL to retain a significant minority ownership stake in the business. Terms of the private transaction were not disclosed.

Headquartered in Honolulu, ProService provides essential human resource-related payroll, benefits, administrative, compliance and risk management services to small and medium-sized businesses on a turnkey, outsourced basis. The Company serves more than 2,000 customers in Hawaii, where it is the largest business of its kind. ProService offers a Professional Employer Organization (“PEO”) co-employment model, and a human resources outsourcing model for larger clients.

“ProService’s innovative service model and high-performance culture have enabled the Company to become the leading provider of human resources services in Hawaii, a state with a strong small business community and complex regulations and compliance requirements,” said Cas Schneller, a Partner at FFL Partners. “We are excited to partner with Ben and his management team to drive further growth in Hawaii.”

The PEO industry is a fragmented, $8 billion industry growing at nearly 10 percent per year. This is being driven, in part, from an increasing recognition of HR as a strategic area where businesses can increase organizational effectiveness and reduce costs through outsourcing.

“We’re thrilled to have the backing of FFL Partners as we pursue our growth strategy,” said Godsey. “They are a great team of experienced, smart professionals who share our vision, and whose expertise will allow us to further expand our business through continued enhancement of our service offering.”

This investment adds to FFL Partners’ leading presence and differentiated focus on the emerging HR Services space. Previous investments include Crisis Prevention Institute, a provider of non-violent crisis intervention training, Interactive Health, a provider of corporate health management and preventive wellness programs, and Korn Ferry, the world's leading provider of executive management solutions.

Houlihan Lokey served as exclusive financial advisor to FFL and Ares Capital provided debt financing for the transaction. Lazard Middle Market served as exclusive financial advisor to ProService Hawaii.

About FFL Partners
FFL Partners is a San Francisco-based private equity firm with over $4.5 billion under management. For over fifteen years, the firm has helped build industry-leading companies, providing capital and advice to exceptional management teams to grow businesses and unlock value. FFL has deep experience in investing and operations, and has brought large-company best practices and professional networks to smaller companies. Business growth has provided over 75% of the value created by FFL for its investors. FFL invests in consumer products and services, industrial products and services, financial services, healthcare services, and business services. For additional information about FFL, please visit FFL’s website at www.fflpartners.com.

About ProService Hawaii
ProService is the state’s leader in HR management. The company provides a comprehensive suite of HR solutions including strategic HR, payroll, human resource services, health benefits management, workers’ compensation and 401(k) management, as well as risk management and regulatory compliance, for 2,100 local businesses representing 35,000 employees statewide. It is accredited by the Employer Services Assurance Corporation (ESAC).

ProService is headquartered on Oahu at 6600 Kalanianaole Hwy., Ste. 200, Honolulu HI 96825. Additional offices are located in Kona, Kahului and Kapaa. Telephone: (808) 394-3100. On the web at www.proservice.com.


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