M&A Deal Summary

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

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

Acquisition Highlights
  • This is PNC Erieview Capital’s 2nd, Stellus Capital Management’s 2nd, Ridgemont Equity Partners’ 9th and Kayne Anderson Capital Advisors’ 1st transaction in the Distribution sector.
  • This is PNC Erieview Capital’s 13th, Stellus Capital Management’s 7th, Ridgemont Equity Partners’ 94th and Kayne Anderson Capital Advisors’ 144th transaction in the United States.
  • This is PNC Erieview Capital’s 1st, Stellus Capital Management’s 1st, Ridgemont Equity Partners’ 5th and Kayne Anderson Capital Advisors’ 2nd 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 Co., Inc.
Sector Distribution
Buyer(s) PNC Erieview Capital
Stellus Capital Management
Ridgemont Equity Partners
Kayne Anderson Capital Advisors LP
Sellers(s) Rotunda Capital Partners
Deal Type Secondary Buyout
Advisor(s) Lincoln International (Financial)
Benesch, Friedlander, Coplan & Aronoff LLP (Legal)

Target

Munch's Supply Co., Inc.

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

PNC Erieview Capital

Investor Investor Investor Investor Investor

website


Category Mezzanine Finance Firm
SizeMiddle-Market
Type Sector Agnostic
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 13 of 24
Sector (Distribution) 2 of 3
Type (Secondary Buyout) 4 of 7
State (Illinois) 1 of 1
Country (United States) 13 of 24
Year (2019) 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-06 Cattron Holdings, Inc.

Warren, Ohio, United States

Cattron Holdings, Inc. is a manufacturer of wireless control solutions for safety and mission-critical applications. Since 1946, 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 Holdings was founded in 1946 and is based in Warren, Ohio.

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

Flower Mound, Texas, United States

Signature Systems Group LLC 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 LLC was based in Flower Mound, Texas.

Sell -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor

website


Category Private Equity Firm
Founded 2004
PE ASSETS 1.5B USD
SizeLarge
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 11
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 2 of 3
State (Illinois) 1 of 2
Country (United States) 7 of 11
Year (2019) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-14 Fleetgistics, Inc.

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

Milan, Illinois, United States

Elliott Aviation is a second-generation, family-owned business aviation company offering a complete menu of high-quality products and services including aircraft sales, avionics service & installations, aircraft maintenance, accessory repair & overhaul, paint, and interior.

Buy -
Buyer

Ridgemont Equity Partners

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1993
PE ASSETS 2.4B USD
SizeLarge
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 invests $25 - $100 million in companies with EBIDTA of $5 - $30 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 and has additional offices in Dallas, Texas.


DEAL STATS #
Overall 108 of 117
Sector (Distribution) 9 of 9
Type (Secondary Buyout) 19 of 23
State (Illinois) 5 of 6
Country (United States) 94 of 103
Year (2019) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-04 WhiteWater Midstream LLC

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 The Speech Pathology Group, Inc.

Walnut Creek, California, United States

The Speech Pathology Group, Inc. is a school and center-based provider of comprehensive speech and language services and behavioral intervention in Northern California. The Speech Pathology Group was established in 1989 and is based in Walnut Creek, California.

Buy -
Buyer

Kayne Anderson Capital Advisors LP

Los Angeles, California, United States

Investor Investor Investor Investor Investor

website


Category Asset Manager
Founded 1984
PE ASSETS 8.6B USD
SizeMega
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 159 of 169
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 6 of 6
State (Illinois) 2 of 3
Country (United States) 144 of 152
Year (2019) 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-10 Kinetiq

Conshohocken, Pennsylvania, United States

Kinetiq is a unified TV intelligence network, offering paid and earned media measurement, monitoring and signaling across local, national and global markets. Kinetiq is based in Conshohocken, Pennsylvania.

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

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 -

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
SizeSmall
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 6
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 2 of 2
State (Illinois) 1 of 1
Country (United States) 4 of 6
Year (2019) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-01 MacQueen Equipment LLC

St. Paul, Minnesota, United States

MacQueen Equipment LLC 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 LLC (DRC Holdings)

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 -