Tech24 Acquires TEMCO, Inc.

Tech24 Completes Ninth Add-on Acquisition

GREENVILLE, S.C., July 25, 2022—Tech24, backed by HCI Equity Partners, today announced that it acquired TEMCO, Inc. (“TEMCO” or the “Company”) on July 20, 2022. Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment. TEMCO is Tech24’s ninth add-on acquisition in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

Based in Jackson, Mississippi, TEMCO is a provider of repair and maintenance services for commercial kitchen and HVAC equipment, with a large focus on hot and cold side equipment services to customers in Jackson and the Gulf Coast area. The acquisition provides Tech24 with geographic expansion to the Southeast, new talent and expanded exposure to attractive customers.

“We are thrilled to welcome TEMCO to the Tech24 organization,” said Dan Rodstrom, CEO of Tech24. “The combination of our companies allows us to enter the rapidly growing Southeastern market and extend our well-known services to a broader set of customers. We look forward to working with Duane Griffin, Mike Reed and the entire TEMCO organization.”

“TEMCO is a great example of HCI’s focus on founder-owned companies looking for a partner to provide assistance in the next stage of growth,” said Doug McCormick, Managing Partner at HCI. “The company is a great addition to the Tech24 platform and we look forward to offering new customers in the Southeast region the fast and reliable service that Tech24 provides.”

Quarles and Brady served as legal counsel to Tech24.

 

About Tech24

Tech24 provides installation, preventative maintenance, and repair for foodservice facilities across the US. The Company specializes in cooking, refrigeration, beverage, and specialty foodservice equipment, as well as performs HVAC, electrical, and plumbing services. For more information, please visit www.mytech24.com.

Tech24 Completes Eighth Add-on Acquisition

GREENVILLE, S.C., May 4, 2022 – Tech24, backed by HCI Equity Partners, announced today it acquired Facilities Management, LLC, and Peltz Services, Inc. (“Facilities Management” or the “Company”) based in Indianapolis, Indiana, on May 2, 2022. Tech24 is a national provider of repair and maintenance services for foodservice and commercial HVAC equipment. Facilities Management is Tech24’s eighth add-on acquisition in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

Facilities Management is a provider of repair services, preventative maintenance, and installation for foodservice equipment to the restaurant industry in central and northern Indiana. The Company provides emergency and routine service for refrigeration, hot-side equipment and HVAC. The acquisition provides Tech24 with expansion into an attractive geography in the Midwest, complementary service offerings and new talent for the combined organization.

“We are thrilled to have Facilities Management join the Tech24 family,” said Dan Rodstrom, CEO of Tech24. “We look forward to working closely with Rick Peltz and the team. The addition enables us to cover the greater Indiana area and extends the growing Tech24 footprint.”

Rick Peltz, President of Facilities Management, said, “Our company has been built on a ‘consider it done’ approach. Our existing service partners will continue to receive the same high level of service they have come to expect. We are excited about the new opportunities to grow our company and the new services we can offer to our customers under the Tech24 national umbrella.”

Doug McCormick, HCI’s Managing Partner commented, “HCI continues to be pleased with the pace of our consolidation strategy execution for the Tech24 platform. Facilities Management provides a specialized expertise to Tech24, and when you combine that with their accelerating growth and team expertise, it makes for a winning addition for the platform.”

Quarles and Brady served as legal counsel to Tech24.

 

About Tech24

Tech24 provides installation, preventative maintenance, and repair for foodservice facilities across the US. The Company specializes in cooking, refrigeration, beverage, and specialty foodservice equipment, as well as performs HVAC, electrical, and plumbing services. For more information, please visit www.mytech24.com.

LIVERPOOL, NY, April 4, 2022 – Echelon Supply and Service (“ESS”), backed by HCI Equity Partners (“HCI”), announced it acquired Berg-Nelson Company, Inc. (“Berg-Nelson” or the “Company”) on March 30, 2022. ESS (f/k/a JGB Enterprises, Inc.) is a leading supply chain management and logistics services distributor of industrial hose, fluid power products, and hose assembly solutions throughout a diverse set of end markets including the U.S. Department of Defense, oil and gas, food and beverage, retail, construction, and industrial OEMs. Berg-Nelson is ESS’s third add-on acquisition since HCI’s platform investment. Financial terms were not disclosed.

Headquartered in Long Beach, California, Berg-Nelson is a supplier of hose, gaskets, and industrial products throughout Southern California. Founded in 1951, the Company distributes products to a variety of industrial end markets and focuses on quick turnaround and specialty applications. Berg-Nelson further expands ESS’ geographic distribution network to the West Coast.

“Berg-Nelson is a long-standing market leader in California, and we welcome the highly experienced team at the Company,” said Kevin Kilkelly, President of Echelon Supply and Service.  We believe it represents a compelling opportunity for ESS to gain a strong presence on the West coast to provide our customers with an even larger product portfolio.”

HCI Managing Partner Doug McCormick commented, “This is the third acquisition for ESS, and we’re very pleased with the growth of the ESS platform through strategic acquisitions.  Berg-Nelson is a well-respected, founder-owned company, which brings expertise and expanded distribution footprint that will further ESS’ growth.”

Greenberg Traurig, LLP served as legal counsel to ESS.

 

About Echelon Supply and Service

Echelon Supply and Service, formally known as JGB Enterprises, Inc., is a leading supply chain management and logistics service provider of industrial hose, fluid power products and hose assembly solutions to industrial and government end markets. ESS is headquartered in Liverpool, NY with additional locations in Buffalo, NY, North Carolina, Missouri, Louisiana, Eastern and Western Canada and Texas. For more information, please visit www.echelonsupply.com.

WASHINGTON, DC, March 22, 2022 – HCI Equity Partners (“HCI”) announced today that Kathryn Towns has joined the HCI Executive Partner group. Ms. Towns will advise on marketing, branding and communication strategies throughout the entire HCI portfolio. HCI is a lower middle market private equity firm that partners with family and founder-owned manufacturing, service and distribution companies.

Previously, Ms. Towns worked with former HCI portfolio company, Delaney Hardware, where she effectively executed a rebrand transformation as well as established the e-commerce channel strategy and partnerships which resulted in market recognition, growth goal achievement and successful exit strategy. Her experience also includes a 10-year tenure at a Robert Bosch subsidiary, Freud America, where she spearheaded marketing efforts and developed the in-house marketing team to achieve annual double-digit growth as well as successful product category and market expansion. She earned a B.A. from Georgia State University and holds a Yellow Belt from the Lean Six Sigma Yellow Belt of the University of Wisconsin-Madison.

HCI Managing Partner Dan Dickinson said “We are delighted to add Kathryn to the HCI Executive Partner Group. We have seen what she can accomplish during our prior working relationship and welcome her back to the HCI family. Kathryn’s depth of experience in marketing and communications, in a variety of business models and family-owned businesses, will make her a valuable and immediate resource to our portfolio.”

“HCI is unlike other private equity firms,” said Kathryn Towns. “They uniquely approach each investment with a growth-driven mentoring mentality while demonstrating respect for the portfolio company employees’ contributions and culture.  That was the reason I wanted to work with the HCI team again and bring my marketing capabilities to the rest of the portfolio.”

WASHINGTON, DC, (March 16, 2022)—HCI Equity Partners, a lower middle market private equity firm, today announced that three of their portfolio companies have been featured on the 2022 Inc. 5000 Regionals list of Fastest Growing Companies. HCI platforms recognized in their respective regions include MSI Express, Pacific Defense and WF Cabinetry. Born of the annual Inc. 5000 franchise, these regional lists represent a unique look at the most successful companies within certain regions in the US.

MSI Express is the tenth fastest growing company on the Midwest regionals list. The Company is a leading contract manufacturer and packager focused on shelf-stable foods. MSI offers one of the broadest service and packaging offerings in the market, including dry mixing and blending, flexible pouches and sachets, liquid blending, and filling, stand cap pouching, canister filling, lidding, cup filling and pet food filling. Through three transformational add-on acquisitions and significant organic growth, MSI’s revenue has grown 1,003%, and employment increased 369% from 2018-2020.

Pacific Defense placed #91 on the Pacific regionals list. The Company designs, engineers and manufactures defense electronic products and solutions focused on providing open architecture systems to ground, sea and air military platforms to address constantly evolving warfare threats. Pacific Defense’s revenue grew 158% from 2018 to 2020, while their employment increased 94%.

WF Cabinetry placed #133 on the Southeast regionals list. The Company is a designer and manufacturer of semi-custom kitchen and bath cabinets. The Company sells to the single-family residential market through a broad network of independent dealers across the U.S. WF offers a wide variety of door styles, colors, and customization options while delivering superior quality and construction to its customers. WF’s revenue grew 97% from 2018 to 2020, while their employment increased 136%.

“We are proud that 20% of HCI’s current platforms have been recognized by Inc. for their explosive growth,” said Doug McCormick, Managing Partner of HCI. “The recognition is another example of how HCI brings both capital and hands-on support to help our founders in achieving their goals.”

Dan Dickinson, HCI Managing Partner commented, “HCI’s core philosophy is to be business partners first with our portfolio founders and support them to rapidly grow through acquisition and organic investment. We are thrilled to see each of these companies recognized for becoming bigger and better businesses.”

 

About Inc. Media

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

WASHINGTON, DC, February 1, 2022—HCI Equity Partners, a leading lower middle market private equity firm, announced today it has been named one of Grady Campbell’s 2022 TOP 50 Private Equity Firms. HCI is focused on partnering with family and founder-owned distribution, manufacturing and service companies. The firm is headquartered in Washington, DC.

Founded in 2016, the TOP 50 PE Firms in the Middle Market is the original awards program designed specifically to acknowledge and promote leading small and mid-sized private equity firms in the middle market. The list recognizes private equity firms that demonstrate excellent leadership, a strong track record and a trusted reputation with business owners.

HCI Managing Partner Doug McCormick said, “We are extremely proud of this recognition for HCI, especially given the qualifications to be honored which included having a trusted reputation with business owners. We always aim to be a business partner first and foremost. We are certainly in great company and salute the rest of the firms included in the TOP 50.”

WASHINGTON, DC, January 26, 2022—HCI Equity Partners, a lower middle market private equity firm, is pleased to announce that Jonathan Konkoly has joined HCI as Vice President of Portfolio Operations, and Ben Choi has joined the firm as Senior Associate.

In his role, Mr. Konkoly will focus on identifying and accelerating profitable revenue growth at HCI’s portfolio companies. He brings to the position deep experience in go-to-market strategy, pricing, and commercial team effectiveness. Previously, he was a Principal at Blue Ridge Partners, a consulting firm focused on helping companies with issues that affect revenue performance. Prior to that, he was a consultant at INSIGHT2PROFIT and at IRI, and held several management positions at McMaster-Carr Supply. Mr. Konkoly earned an MBA from the Kellogg School of Management at Northwestern University and a BBA from Loyola University Chicago’s Quinlan School of Business.

Mr. Choi will be responsible for evaluating, analyzing and monitoring investments made by the firm. He previously held strategic finance roles with HCI portfolio company MSI Express and at several multi-unit restaurant groups; and was an Associate at Sentinel Capital Partners. He began his career in investment banking at Houlihan Lokey and BB&T Capital Markets. He has a BA from the College of William & Mary where he double majored in economics and political science.

HCI Managing Partner Doug McCormick explained, “These additions reflect critical skillsets to support our evolving needs as we help our investments rapidly grow through organic growth and M&A.  Jonathan’s sales operations expertise and Ben’s transaction and strategic finance skillset are powerful additions to the firm’s value creation capabilities.”

Dan Dickinson, HCI Managing Partner said, “We take immense pride in our culture and HCI is pleased to welcome Jonathan and Ben, and excited to have attracted these talented individuals. They are both terrific additions to the firm.”

JGB Continues North American Acquisition Expansion

LIVERPOOL, NY January 7, 2022 – JGB Enterprises, Inc. (“JGB”), backed by HCI Equity Partners (“HCI”), announced it acquired All-Serv Industrial, LLC (“All-Serv” or the “Company”) on December 31, 2021. JGB is a leading supply chain management and logistics services distributor of industrial hose, fluid power products, and hose assembly solutions throughout a diverse set of end markets including the U.S. Department of Defense, oil and gas, food and beverage, retail, construction, and industrial OEMs in the US and Canada. All-Serv is JGB’s second add-on acquisition since HCI’s platform investment. Financial terms were not disclosed.

Headquartered in Sulphur, Louisiana with four locations in the Gulf Coast region, All-Serv is a supplier of hose and hose-related accessories for environmental remediation, industrial cleaning and other needs of the refinery and petrochemical market. The acquisition of All-Serv further enhances JGB’s strong footprint in this attractive market while also providing a complementary product portfolio and service capabilities.

JGB President Kevin Kilkelly commented, “All-Serv is an incredibly customer focused and market leading distribution platform in an industry where JGB has extensive experience and success. We believe it represents a compelling opportunity to drive operating improvements and geographic expansion. Moreover, we believe that JGB and All-Serv’s complementary businesses will scale nicely, accelerating growth, enhancing each other’s capabilities while fostering an entrepreneurial culture that delivers exceptional customer experience.”

HCI Managing Partner Doug McCormick commented, “HCI is pleased to support the JGB team with capital to consummate their second add-on acquisition:  All-Serv Industrial, LLC. We believe this acquisition accelerates JGB’s growth while providing All-Serv’s customers with a more robust line of industrial and hydraulic products. We look forward to supporting the team with additional capital as it continues to execute on its acquisition growth strategy.”

Greenberg Traurig, LLP served as legal counsel to JGB in the transaction.

 

About JGB Enterprises, Inc.

JGB Enterprises, Inc. is a leading supply chain management and logistics service provider of industrial hose, fluid power products and hose assembly solutions to industrial and government end markets. JGB services customers across North America and is headquartered in Liverpool, NY with additional locations in Buffalo, NY, North Carolina, Missouri, Texas and six locations in Canada. For more information, please visit www.jgbhose.com.

WASHINGTON, DC, January 5, 2022 – HCI Equity Partners (“HCI”), a leading lower middle market private equity firm that focuses on partnering with founder-owned distribution, manufacturing and B2B service companies, announced today the promotions of Scott Gibaratz to Partner; Brendon Biddle and Tim Frend to Managing Director; and Matt Clark to Vice President.

Scott Gibaratz, Partner, joined HCI in 2004 and plays a leading role in the diligence, acquisition and management of HCI’s portfolio companies. In addition to over a decade of leadership experience in private equity, Scott brings extensive experience as an M&A banker and corporate CFO.  He has played a leadership role in the firm’s building products practice and the recent exits of Summit Interconnect and The Delaney Hardware Company. He is a mentor to the investment team and plays a key role in the leadership of the firm.

Brendon Biddle, Managing Director, has been at HCI since 2006 and has a central role in HCI’s evaluation and execution of its investment mandate. With significant experience in the defense and distribution markets, he currently provides deal leadership for HCI portfolio companies Pacific Defense, JGB Enterprises, Inc., AmerCareRoyal and Consolidated Hospitality Supplies.

Tim Frend, Managing Director, joined HCI in 2006 and in addition to deal leadership he heads the firm’s business development and deal origination activities. He also works with HCI portfolio companies Tech24, MSI Express and SDS Rx, playing a key role in diligence, underwriting, transaction execution and management of growth strategies.

Matt Clark, Vice President, joined HCI in 2020 and brings almost a decade of broad business experience from best in class organizations such as KKR, Gardner Denver and Wharton. Matt is responsible for evaluating, executing and monitoring investments made by the firm and works with HCI portfolio companies Tech24, JGB Enterprises, Inc., and Commercial Steel Treating Corp.

“These promotions recognize the significant and continuing contributions of Scott, Brendon, Tim and Matt to the success of HCI,” said Doug McCormick, HCI Managing Partner. “Like the businesses in which we invest, our success is determined by fielding a winning team and giving them the platform and resources to be successful. We look forward to the impact these exceptional leaders will have with these expanded roles and responsibilities.”

Dan Dickinson, HCI Managing Partner, added, “HCI is fortunate to have attracted these talented and committed leaders to our team, and they have our deep appreciation. We are a people-first, close-knit firm and we believe our future success depends on the capability, commitment and creativity of our people.”

AmerCareRoyal Completes Seventh Add-on Acquisition

EXTON, PA, December 17, 2021 – AmerCareRoyal, backed by HCI Equity Partners (“HCI”), announced today it acquired Ross & Wallace Paper Products, Inc. (“Ross & Wallace” or the “Company”). AmerCareRoyal is a leading supplier of disposable foodservice supplies, gloves and take-out packaging. Ross & Wallace is AmerCareRoyal’s seventh add-on acquisition since HCI’s initial investment. Financial terms were not disclosed.

Ross & Wallace Paper Products is a US manufacturer of paper grocery and merchandise bags, SOS grocery sacks and paper roll products. The Company serves the grocery, convenience store and other foodservice industries. Founded in 1951 and entirely owned by the Ross Family, the Company is based in Hammond, Louisiana, outside New Orleans.

“We are very excited the Ross & Wallace team has joined AmerCareRoyal,” said Scott Milberg, CEO of AmerCareRoyal. “This development significantly extends the scope and capability of the North American foodservice industry’s leading single-stream resource for disposable products. It is an extraordinary day in the proud histories of AmerCareRoyal and Ross & Wallace.”

“Becoming a part of the AmerCareRoyal team provides Ross & Wallace with an exciting opportunity to combine our resources and utilize our shared values to begin the next chapter of growth,” said Megan Manning, Ross & Wallace CEO. “As a company with a proud history of committing to quality and customer service, we believe this acquisition positions both companies to better serve our customers.”

HCI Managing Partner, Doug McCormick, commented, “We appreciate that Ross & Wallace has chosen to join HCI’s AmerCareRoyal group. We have a strong commitment to partnering with forward-looking founders such as the Ross Family and believe AmerCareRoyal can provide new resources not only to sustain a generational legacy of success but accelerate the company’s growth. HCI’s track record demonstrates that we help companies grow, innovate, and better compete in today’s markets, and we are confident that Ross & Wallace and their management team will become a valuable part of AmerCareRoyal.”

Greenberg Traurig served as legal counsel to ACR. Generational Equity acted as the financial advisor to Ross & Wallace and Seale & Ross, PLC served as legal counsel.

 

About AmerCareRoyal

AmerCareRoyal is a single stream resource for over 6,000 disposable products used in the foodservice, janitorial, sanitation, industrial, hospitality and medical industries. With multiple shipping points across the United States, our family of companies service national level customers with outstanding customer service and an ever-growing product line. For more information, please visit www.amercareroyal.com.