M&A Deal Summary

Baymark Partners and Midwest Mezzanine Funds Acquire Rackmount Solutions

On November 24, 2021, private equity firm Baymark Partners and mezzanine finance firm Midwest Mezzanine Funds acquired information technology company Rackmount Solutions

Acquisition Highlights
  • This is Baymark Partners’ 3rd and Midwest Mezzanine Funds’ 3rd transaction in the Information Technology sector.
  • This is Baymark Partners’ 13th and Midwest Mezzanine Funds’ 78th transaction in the United States.
  • This is Baymark Partners’ 3rd and Midwest Mezzanine Funds’ 7th transaction in Texas.

M&A Deal Summary

Date 2021-11-24
Target Rackmount Solutions
Sector Information Technology
Buyer(s) Baymark Partners
Midwest Mezzanine Funds
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) Generational Group (Financial)

Target

Rackmount Solutions

Plano, Texas, United States
Rackmount Solutions provides off-the-shelf, custom, and niche server racks, server cabinets, wall mounts, portable cooling solutions, outdoor enclosures, batteries, integrated AC and DC power system solutions, rack accessories, and power, along with installation and maintenance services over the phone. Rackmount Solutions was formed in 2001 and is based in Plano, Texas.

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Buyer(S) 2

Buyer

Baymark Partners

Plano, Texas, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 2008
Size Small
Type Sector Focused
DESCRIPTION

Baymark Partners is a private equity group focused on acquiring smaller growth companies that can expand into mid-sized businesses. Baymark generally looks for companies that are breakeven or have up to $20 million in EBITDA. Sectors of interest include business services, IT outsourcing and medical/healthcare services. Baymark prefers opportunities in Texas and neighboring states. Baymark Partners is based in Dallas.


DEAL STATS #
Overall 13 of 14
Sector: Information Technology M&A 3 of 3
Type: Buyout (LBO, MBO, MBI) M&A Deals 10 of 10
State: Texas M&A 3 of 4
Country: United States M&A 13 of 14
Year: 2021 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-03 Brilliance LED

Carefree, Arizona, United States

Brilliance LED manufactures performance LED lamps, a variety of landscape lighting fixtures, and easy-to-operate smart products and controls for both commercial and residential markets. Brilliance LED was founded in 2008 and is based in Carefree, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-09-27 New Promise Neuropathy

Arlington, Texas, United States

New Promise Neuropathy is a health clinic specializing in the treatment of all types of neuropathy and musculoskeletal pain and ailments. New Promise Neuropathy specializes in Combination Electroanalgesia Treatment (CET) to heal or reverse peripheral neuropathy. New Promise Neuropathy was founded in 2010 and is based in Arlington, Texas.

Buy -
Buyer

Midwest Mezzanine Funds

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1992
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Midwest Mezzanine Funds (MMF) is a provider of junior capital to lower middle-market, US and Canadian companies. MMF looks to invest $4 to $15 million to support buyouts, acquisition financings, recapitalizations, and growth capital needs. Prospective companies generally have consistent profits ($3 million of EBITDA), low capital intensity, and sustainable competitive advantages. Broad areas of interest include manufacturing, value-added distribution, and services. MMF will not invest in high technology, energy, or real estate. Midwest Mezzanine was formed in 1992 and has offices in Chicago and Monroe, Michigan.


DEAL STATS #
Overall 78 of 81
Sector: Information Technology M&A 3 of 4
Type: Buyout (LBO, MBO, MBI) M&A Deals 31 of 32
State: Texas M&A 7 of 8
Country: United States M&A 78 of 81
Year: 2021 M&A 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-01 Fluence Automation

Arlington Heights, Illinois, United States

Fluence Automation LLC provides mail and parcel sorting systems/hardware and related software and service revenue associated with the hardware as well as assets that will be leveraged for growth opportunities in the material handling and e-Commerce fulfillment markets. Fluence Automation is based in Arlington Heights, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-01 FireKing

New Albany, Indiana, United States

FireKing is a manufacturer of fireproof, impact-resistant, document retention and data storage systems. FireKing was founded in 1951 and is based in New Albany, Indiana.

Sell -