BlackEagle Partners Acquires Instar Services Group

Bloomfield Hills, Michigan – August 20, 2008 – BlackEagle Partners, LLC, a private equity firm focused on turnarounds and special situations, acquired InStar Services Group, LP (“InStar” or the “Company”), a non-core division of The ServiceMaster Company, a portfolio company of private equity firm Clayton, Dubilier, & Rice, Inc. 

Based in Fort Worth, Texas, InStar is a leading national provider of disaster response, insurance restoration and reconstruction services operating from 14 branches throughout the East Coast, the Southeast and Texas.  In addition to disaster response, services include response to regularly occurring incidents, such as fires, floods, water-line breaks and storm damage in order to return damaged property to its pre-loss condition.  The Company also provides structural maintenance, renovation and modernization services to large multi-family properties.  InStar markets its services to a broad range of customers, including retail, hospitality, manufacturing, healthcare, insurance companies and multi-family residential property owners/managers.

“As the third acquisition in BlackEagle’s debut fund, InStar is a great fit with our philosophy of investing in non-core assets with unrealized potential,” said Jason Runco, Partner of BlackEagle.  Garrett Kanehann, Partner of BlackEagle, added, “InStar’s strong management team and broad geographic footprint will allow us to serve the needs of customers throughout the United States.” 

The InStar management team will own a significant stake in the business post-acquisition and Dave Demos will remain in his role as President and CEO.  Mr. Demos brings more than 30 years of industry and operational experience in disaster restoration services.  “We are pleased to announce this transaction and partner with BlackEagle, which shares our vision for the growth and development of InStar,” stated Mr. Demos.

Michael DuBay of Honigman Miller Schwartz and Cohn, LLP represented BlackEagle in the acquisition and Alvarez & Marsal Transaction Advisory Group provided financial and accounting diligence.  Morgan Keegan & Company, Inc. represented InStar and ServiceMaster in the transaction.

About BlackEagle Partners
BlackEagle Partners LLC, with offices in New York, New York and Bloomfield Hills, Michigan, is an operations focused, middle market private equity firm that seeks to acquire underperforming and distressed businesses, non-core subsidiaries, and companies in out-of-favor industries. BlackEagle seeks businesses with an enterprise value below $200 million. For more information, please visit www.blackeaglepartners.com

Contact
Jason Runco – 313.647.5347