M&A Deal Summary

Marcone Acquires Munch s Supply

On January 11, 2022, Marcone acquired distribution company Munch s Supply from PNC Erieview Capital, Stellus Capital Management, Ridgemont Equity Partners and Kayne Anderson Capital Advisors

Acquisition Highlights
  • This is Marcone’s 1st transaction in the Distribution sector.
  • This is Marcone’s 2nd transaction in the United States.
  • This is Marcone’s 1st transaction in Illinois.

M&A Deal Summary

Date 2022-01-11
Target Munch s Supply
Sector Distribution
Buyer(s) Marcone
Sellers(s) PNC Erieview Capital
Stellus Capital Management
Ridgemont Equity Partners
Kayne Anderson Capital Advisors
Deal Type Add-on Acquisition
Advisor(s) Robert W. Baird & Co., Inc.
Houlihan Lokey (Financial)
Alston & Bird 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) 1

Buyer

Marcone

St Louis, Missouri, United States

website


Category Company
Sector Distribution
DESCRIPTION

Marcone is a distributor of original equipment parts for the repair of residential appliances in the United States and Canada. Marcone's customer base is comprised of thousands of residential appliance repair service providers and technicians, as well as extended warranty providers. Marcone is based in St Louis, Missouri.


DEAL STATS #
Overall 2 of 3
Sector (Distribution) 1 of 2
Type (Add-on Acquisition) 2 of 3
State (Illinois) 1 of 1
Country (United States) 2 of 3
Year (2022) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-20 PPG

Glen Mills, Pennsylvania, United States

PPG designs, manufactures, markets, and distributes high-quality plumbing products. PPG’s portfolio includes products from two proprietary brands – Wolverine Brass, and Speakman – as well as third-party products across all of the leading brands. PPG was founded in 2003 and is based in Glen Mills, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-10-20 Great Plains Pool and Products

Houston, Texas, United States

Great Plains Pool and Spa Products distributor of swimming pool and spa equipment, parts and chemicals, and is located in Kansas City (Great Plains Supply) and Houston (Pool & Spa Products). Great Plains Pool and Spa Products is based in Houston, Texas.

Buy -

Seller(S) 4

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 11 of 14
Sector (Distribution) 2 of 3
Type (Add-on Acquisition) 4 of 6
State (Illinois) 1 of 1
Country (United States) 11 of 14
Year (2022) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-20 EnableComp

Franklin, Tennessee, United States

EnableComp is a provider of workers' compensation, Veteran Affairs, and other complex claims processing solutions, facilitated by its proprietary software, Enforcer360. EnableComp was founded in 2000 and is based in Franklin, Tennessee.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-18 DecksDirect

Minneapolis, Minnesota, United States

DecksDirect is a direct-to-job-site distributor of premium deck products. DecksDirect offers a uniquely broad line of in-stock products, including composite decking, railing, lighting, and other deck accessories. DecksDirect was founded in 2008 and is based in Minneapolis, Minnesota.

Buy -
SELLER

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 5 of 5
Sector (Distribution) 2 of 2
Type (Add-on Acquisition) 3 of 3
State (Illinois) 1 of 1
Country (United States) 5 of 5
Year (2022) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-10 Ledge Lounger

Katy, Texas, United States

Ledge is an in-pool and backyard furniture and accessories platform with an omni-channel go-to-market strategy. Since the introduction of their first in-pool Chaise, Ledge has grown to include patio furnishings, umbrellas, cabanas and outdoor games, all designed to withstand the harsh pool and outdoor environments. Ledge Lounger was founded in 2011 and is based in Katy, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-02 Bishop Lifting Products

Houston, Texas, United States

Bishop Lifting Products is a fabricator and distributor of products, services, and lifting solutions for crane, rigging, marine, and oilfield applications. Bishop Lifting Products was founded in 1984 and is based in Houston, Texas.

Buy -
SELLER

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 87 of 90
Sector (Distribution) 7 of 7
Type (Add-on Acquisition) 33 of 35
State (Illinois) 5 of 5
Country (United States) 76 of 79
Year (2022) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-01 WhiteWater III

United States

WhiteWater III (Matterhorn) is a long-haul natural gas pipeline from Permian Basin to demand centers on the Texas Gulf Coast.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-24 American Outcomes Management

Fort Worth, Texas, United States

American Outcomes Management is a specialty infusion provider focused on intravenous immunoglobulin (“IVIG”) infusion therapy. American Outcomes Management was founded in 1994 and is based in Fort Worth, Texas.

Buy -
SELLER

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 77 of 80
Sector (Distribution) 1 of 1
Type (Add-on Acquisition) 30 of 31
State (Illinois) 2 of 2
Country (United States) 67 of 69
Year (2022) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-04 GEOWEALTH

Chicago, Illinois, United States

GEOWEALTH provides an end-to-end asset management platform for registered investment advisors. The company provides a proprietary technology platform and advisory services for trading and rebalancing of the RIA’s model portfolios, a white-labeled client portal with reporting functionalities and back-office services, billing and account management. GEOWEALTH was founded in 2010 and is based in Chicago, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-04-05 myKaarma

Long Beach, California, United States

myKaarma is a rapidly growing, end-to-end SaaS platform for franchise automotive dealership service lanes. myKaarma’s unified solution includes an integrated suite of scheduling, interaction, communication, and payment tools that encompass the entire repair process, thereby driving efficiencies for dealer service lanes as well as improved experiences for vehicle owners. myKaarma was founded in 2012 and is based in Long Beach California.

Sell -