APi Group (APG) in Laughing Water Capital 2024 Q2

Expanding Safety Services with Strategic Acquisitions

Apr 15, 2025

Summary

Investment rationale: Focus on recurring revenue from non-discretionary services.
Market positioning: Leader in fire safety and expanding into elevator services.
Risks and challenges: Revenue noise from strategic business shifts.
Recent performance: Continued execution on margin expansion and strategic acquisitions.
Future outlook: Long-term value compounding through bolt-on M&A and cross-selling opportunities.

APi Group (APG, Financial) was featured in Laughing Water Capital’s Q2 2024 letter as a top holding, emphasizing its strategic focus on expanding its recurring revenue base through non-discretionary safety services. The company’s recent acquisition in the elevator services sector is seen as a complementary addition to its core fire safety business.

"The Company continues to execute on their plan to widen margins while having 60% of revenue coming from recurring inspection and service work. Part of widening margins has been addition by subtraction, whereby the Company has been walking away from some less attractive business opportunities." — Laughing Water Capital, Q2 2024 Fund Letter

Read full letter at gurufocus Laughing Water Capital 2024 Q2 page.

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