Nashville, Tenn., Feb. 19, 2013 – Gen Cap America, Inc., a private equity firm that is a leader in the middle market buyout niche in the Southeast, announced today the company had a record year for acquisitions in 2012 with a total of five. The new acquisitions are all being funded by Gen Cap America’s Southvest Fund VI, which closed in March 2009 and began making investments in May 2010.
“We are excited to work with each of these companies, and their top-quality management teams, which have been crucial to the historical successes of all five organizations,” said Gen Cap America president Barney Byrd. “Each company faces exciting market opportunities in their respective industries, and is well positioned for long term success under our new ownership.”
All acquisitions were by management buyout and included:
- February 2012: Nth Degree, Inc. – Founded in 1979, Nth Degree is a leading trade show and event services business, specializing in providing experienced project management, staffing and installation labor resources to some of the world’s largest corporations and most active exhibit agencies. Based in Duluth, GA, Nth Degree provides trade show and event services to clients within the $12.5 billion Trade Show and Exhibits industry at over 2,750 trade shows each year, including many of the most recognized trade shows in the world.
The President and CEO, and eight other key managers joined the Fund in purchasing the Company from a consortium of private equity owners. The executive team will oversee Nth Degree’s 21 North American offices, as well as outposts in China, Germany and England.
- March 2012: Magnum Systems, Inc. – Magnum Systems is a leading designer and manufacturer of material-handling and packaging systems for bulk solids with customers that process grain, seeds, cereals, sugar, flour, plastic pellets, plastic powder, sand, cement, fly ash, fertilizers, granulate chemicals and other bulk solids. The company is headquartered in Kansas City, KS and also has a facility in Parsons, KS. The two companies that were merged in 2000 to form Magnum were founded in 1960 and 1969.
The Fund partnered with the company’s General Manager, CFO, and three other members of management to make the purchase.
- June 2012: OFM, LLC – Founded in 1995, OFM, LLC is a leading designer and distributor of branded office furniture. The company sells and distributes a wide array of office furniture products throughout the United States and Canada. OFM offers its customers over 3,600 product SKUs including chairs, tables and desks, cubicles, storage, and miscellaneous accessories. The Company is headquartered in Holly Springs, NC and maintains a distribution facility in Phoenix, AZ.
The Fund partnered with the company’s COO, Sales Manager, and three other members of management to make the purchase.
- October 2012: CPS Distributors, Inc. – CPS Distributors is the largest wholesale distributor of professional pump, irrigation and landscape supplies in the Rocky Mountain Region. Products include: turf and irrigation equipment; central irrigation control systems; industrial, commercial and residential pumps; landscape and hardscape products such as weed barrier fabric, tools, fertilizer, and pavers; landscape lighting and accessories; ponds and water feature products and accessories; and outdoor kitchens. Customers include contractors for commercial facilities and municipalities, landscape contractors, and residential and maintenance contractors. The Company was founded in 1890 and is headquartered in Westminster, CO. The Company has 11 locations with nine in Colorado and two in Wyoming.
The Fund, together with senior management at CPS Distributers, joined to purchase the company.
- November 2012: Avanti Products, LLC – Avanti Products, LLC is a leader in the compact consumer appliance industry specializing in the design and distribution of refrigerators, wine and beer coolers, microwaves, gas & electric ranges, water dispensers, laundry machines, and other compact appliances. Customers include over 300 distributors, wholesalers, retailers, hotels, and online merchants. Avanti products are ultimately sold at over 7,000 retail locations. Target consumers include college students (dorm rooms), retirees (RV outfitting), and commercial industries such as restaurants, offices, and the hospitality industry. The Company was founded in 1973 and is headquartered in Miami, FL, while maintaining distribution centers located in Miami, California, and New Jersey.
The Fund partnered with the company’s management to acquire the assets of Avanti Products, a division of the Mackle Company.
“Gen Cap seeks to invest in companies with demonstrated successful operating histories and quality management teams that can continue to guide the company,” said Don Napier, executive vice president of Gen Cap. “These five companies fit that profile, and our partnership with them presents tremendous opportunities for all parties.”
Terms of the transactions are not publicly available.
Gen Cap America, Inc. is a Nashville-based private equity firm that provides equity for management buyouts and recapitalizations of profitable, well-established middle-market businesses. For more information, visit www.gencapamerica.com.