M&A Deal Summary

Ridgemont Equity Partners, PNC Erieview Capital, Kayne Anderson Capital Advisors and Stellus Capital Management Acquire Munch s Supply

On April 12, 2019, private equity firm Ridgemont Equity Partners, mezzanine finance firm PNC Erieview Capital, asset manager Kayne Anderson Capital Advisors and private equity firm Stellus Capital Management acquired distribution company Munch s Supply from Rotunda Capital Partners

Acquisition Highlights
  • This is Ridgemont Equity Partners’ 11th, PNC Erieview Capital’s 2nd, Kayne Anderson Capital Advisors’ 1st and Stellus Capital Management’s 2nd transaction in the Distribution sector.
  • This is Ridgemont Equity Partners’ 98th, PNC Erieview Capital’s 16th, Kayne Anderson Capital Advisors’ 145th and Stellus Capital Management’s 7th transaction in the United States.
  • This is Ridgemont Equity Partners’ 5th, PNC Erieview Capital’s 1st, Kayne Anderson Capital Advisors’ 2nd and Stellus Capital Management’s 1st transaction in Illinois.
Investment Fate
  • Munch s Supply was sold to a strategic buyer in 2022.

M&A Deal Summary

Date 2019-04-12
Target Munch s Supply
Sector Distribution
Buyer(s) Ridgemont Equity Partners
PNC Erieview Capital
Kayne Anderson Capital Advisors
Stellus Capital Management
Sellers(s) Rotunda Capital Partners
Deal Type Secondary Buyout
Advisor(s) Lincoln International (Financial)
Benesch, Friedlander, Coplan & Aronoff LLP (Legal)

Target

Munch s Supply

Hillside, Illinois, United States
website
Munch's Supply is an HVAC distributor and third-generation family business focused exclusively on supplying heating and cooling industry contractors with quality products. Munch's Supply was founded in 1956 and is based in Hillside, Illinois.

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Buyer(S) 4

Buyer

Ridgemont Equity Partners

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1993
PE ASSETS 6.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ridgemont Equity Partners is an independent private equity firm specializing in middle-market buy-outs, corporate divestitures, recapitalizations and growth capital investments. The Firm targets to invest in companies located in North America, preferably in US and Canada. REP looks to invest up to $250 million in companies with EBIDTA of $5 - $50 million. The Firm seeks to hold both majority and minority equity interest in portfolio companies. Specific areas of interest include basin industries and services, energy, healthcare, telecommunications, media and technology. Ridgemont Equity Partners is a spun-off of Banc of America Capital Investors (BACI). Ridgemont Equity Partners was formed in August 2010 and is based in Charlotte, North Carolina.


DEAL STATS #
Overall 112 of 132
Sector (Distribution) 11 of 12
Type (Secondary Buyout) 19 of 24
State (Illinois) 5 of 6
Country (United States) 98 of 117
Year (2019) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-04 WhiteWater Midstream

Austin, Texas, United States

WhiteWater Midstream is a midstream oil and gas company focused on building traditional gathering and processing infrastructure for upstream companies in areas lacking infrastructure. WhiteWater Midstream was founded in 2016 and is based in Austin, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-18 SPG Therapy & Education

Walnut Creek, California, United States

SPG Therapy & Education is a school and center-based provider of comprehensive speech and language services and behavioral intervention in Northern California. SPG Therapy & Education was established in 1989 and is based in Walnut Creek, California.

Buy -
DESCRIPTION

PNC Erieview Capital is a provider equity and junior capital to middle-market companies throughout the US and Canada. The Firm looks to support private equity sponsor-led buyouts and recapitalizations, non-sponsored buyouts, family office buyouts, and growth equity needs. PNC Erieview typically works with profitable companies (EBITDA greater than $5 million) valued from $20 to $250 million. Areas of interest include distribution, consumer products, healthcare, manufacturing, and services. The Firm was originally known as National City Equity Partners and was established in 1979. PNC Erieview Capital is based in Cleveland, Ohio.


DEAL STATS #
Overall 16 of 38
Sector (Distribution) 2 of 6
Type (Secondary Buyout) 4 of 7
State (Illinois) 1 of 1
Country (United States) 16 of 38
Year (2019) 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-06 Cattron

Warren, Ohio, United States

Cattron is a manufacturer of wireless control solutions for safety and mission-critical applications. Cattron has designed, manufactured, and supplied controls that are well recognized and respected in both the rail and industrial markets. Cattron's product portfolio includes complementary machine and operator controls. Cattron was founded in 1946 and is based in Warren, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-07 Signature Systems Group

Flower Mound, Texas, United States

Signature Systems Group is a manufacturer of composite mats for worksite safety and ground protection. Signature Systems Group’s products are utilized in the construction, power transmission, infrastructure, energy, and special events industries. Signature Systems Group was formed in 1998 and is based in Flower Mound, Texas.

Sell -
Buyer

Kayne Anderson Capital Advisors

Los Angeles, California, United States

Investor Investor Investor Investor Investor

website


Category Asset Manager
Founded 1984
PE ASSETS 8.6B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Kayne Anderson Capital Advisors is an alternative investment management firm focused on hedge funds, public funds, energy private equity, growth private equity, real estate private equity, and mezzanine finance opportunities. Kayne's energy private equity group focuses on $20 to $100 million investments in high-growth exploration and production, midstream and oilfield service companies. The energy group considers both majority or minority stakes in public and private businesses. Kayne's growth private equity practice involves structured investments in public and private companies looking for capital to finance expansion. This group will also consider middle-market leveraged transactions and management buyouts. Kayne's real estate private equity group invests in established, cash-flow generating projects. Areas of interest include student housing and campus-oriented retail properties, amongst other opportunistic investments. The Group looks for acquisitions of $25 to $100 million. Kayne's mezzanine team looks to provide $20 to $35 million of capital for mid-market businesses with $100 to $500 million of sales and $10 to $50 million of EBITDA. Kayne Capital Advisors was formed in 1984 and is based in Los Angeles with additional offices in Armonk, New York; New York City, and Houston.


DEAL STATS #
Overall 160 of 171
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 6 of 6
State (Illinois) 2 of 4
Country (United States) 145 of 154
Year (2019) 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-13 Ideas United

Atlanta, Georgia, United States

Ideas United is a content creation agency that leverages a crowd-sourced filmmaker network to serve top-tier brands in both branded and original content. Ideas United helps solve the shortage of diverse video content that exists today by leveraging a mix of internal resources and crowd-sourced creators for brands, media companies, and non-profits. Ideas United was founded in 2001 and is based in Atlanta, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-01 PAK Development

Midland, Texas, United States

PAK Development is a private exploration and production company based in Midland, Texas that focuses on the acquisition and development of oil and gas properties in the Permian Basin.

Sell -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 2004
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stellus Capital Management is a provider of debt and equity capital to middle-market companies headquartered throughout the US and Canada. For credit commitments, Stellus looks to provide $10 to $50 million of capital to help support buyouts, acquisitions, recapitalization, growth opportunities, rescue financing, distressed situations, as well as bridge loans. Sectors' of interest for Stellus' credit practice includes business services, energy, general industrial, government, healthcare, software and specialty finance. Stellus' equity practice seeks to provide $30 to $50 million to small and mid-sized energy (upstream, oilfield services, midstream) companies. Stellus Capital was originally formed in 2004 as Laminar Direct Capital and operated as the direct investing unit of D.E. Shaw. The Group became independent in 2012. Stellus has offices in Houston, New York City, and Washington DC.


DEAL STATS #
Overall 7 of 21
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 2 of 5
State (Illinois) 1 of 2
Country (United States) 7 of 21
Year (2019) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-14 Fleetgistics

Orlando, Florida, United States

Fleetgistics, Inc. is a provider of outsourced same-day, dedicated route logistics services to customers predominantly located on the east coast of the United States. Fleetgistics was formed in 1987 and is based in Orlando, Florida.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-02-03 Elliott Aviation

Moline, Illinois, United States

Elliott Aviation is a provider of maintenance, repair and overhaul (“MRO”), fixed based operations services, and aircraft sales and brokerage services to the business aviation industry. Elliott Aviation is based in Moline, Illinois.

Buy -

Seller(S) 1

SELLER

Rotunda Capital Partners

Bethesda, Maryland, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
PE ASSETS 195M USD
Size Small
Type Sector Focused
DESCRIPTION

Rotunda Capital Partners is a private equity firm which invests equity and debt capital in established and profitable lower middle market companies. The Company targets businesses valued between $30 and $150 million with defensible market positions and strong growth prospects. Sectors of interest include financial services, business services, manufacturing, government services, insurance services, logistics and distribution, retail, and consumer. Rotunda Capital Partners is based in Bethesda, Maryland with an additional office in Chicago.


DEAL STATS #
Overall 4 of 11
Sector (Distribution) 1 of 2
Type (Secondary Buyout) 2 of 5
State (Illinois) 1 of 1
Country (United States) 4 of 11
Year (2019) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-01 MacQueen Equipment

St. Paul, Minnesota, United States

MacQueen Equipment sells Elgin street sweepers, Vactor trucks, Oshkosh snow removal equipment, and Heil refuses trucks to municipalities and commercial customers, including utilities and contractors throughout Minnesota, Iowa, Nebraska, and Wisconsin. In addition, MacQueen sells Pierce fire apparatus throughout Minnesota, North Dakota, South Dakota, Nebraska, and Missouri. MacQueen is one of the few national dealers to provide a full suite of services, including maintenance, parts, and supplies used equipment sales and a robust rental fleet.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-08 Discount Ramps

Germantown, Wisconsin, United States

Discount Ramps LLC is an online retailer of loading, hauling and transportation products. Offering more than 11,000 products, the company primarily services the power sport, medical, recreational, commercial, transportation, military, and industrial markets. Discount Ramps was founded in 2000 and is based in Germantown, Wisconsin.

Sell -