Investment Opportunity
The exterminating and pest control services industry is highly fragmented. Comprised of over 22,000 companies that operate throughout the U.S., the industry collectively generated around $6.4 billion in revenue in 2006. Georgia is the largest pest control market in the U.S. consitiuting 16.8% of industry revenue, with over 1,000 operators (4.7% of industry firms) reporting sales of $1.1 billion during 2006. Several factors make the industry, and Baco, highly attractive.  These companies have significant amounts of contractual recurring revenue. The Atlanta Metropolitan Statistical Area enjoys the highest population increase rate in the nation (21% from 2000 to 2006), which thereby creates a natural demand for pest control services. In addition, there has been an increase in invasive pests, especially in the temperate Southeast, generating expanded demand for pest control services.

Business Description
Baco Exterminating Services, LLC is a full-service provider of pest control services in the greater Atlanta area, offering services to residential, commercial, and industrial clients. Headquartered in Norcross, Georgia, the Company operates four additional branch offices throughout the area, serving 28 counties. The Company has experienced growth at a compound annual rate of 8% from 2003 to 2006. Relying on quality service, an exceptional client retention rate and strong reputation, Baco has established itself as a leader in the Atlanta market. Baco is an authorized operator of Sentricon systems, the most widely used baiting system for termite elimination. Given the nature of the business, the customer retention rates and the usage of long-term contracts with customers, the Company exhibits highly recurring revenues and stable cash flows.

Transaction Description
In January 2008, Prometheus completed the acquisition of Baco Exterminating Services. Prometheus arranged a senior term loan with MFC Capital Funding with an additional credit facility to finance future acquisitions. In addition, Northstar Capital provided the subordinated debt.

Immediately following closing, Prometheus is focused on directing the Company towards several opportunities for growth. The fragmented nature of the industry presents potential for both add-on acquisitions of small competitors in the Company’s current markets as well as platform acquisitions in adjacent markets. The Company is also focused on internal growth through the expansion of its existing customer base and market footprint.