Tech24 Acquires RMS Mechanical Services

Tech24 Completes Seventh Add-on Acquisition

GREENVILLE, SC, December 7, 2021 — Tech24, backed by HCI Equity Partners, announced today it acquired RMS Mechanical Services, based in Ambridge, Pennsylvania, on December 3, 2021. Tech24 is a national provider of repair and maintenance services for food service and commercial HVAC equipment. RMS is Tech24’s seventh add-on acquisition in the highly fragmented foodservice repair and maintenance market. Financial terms were not disclosed.

RMS is a provider of foodservice and commercial HVAC equipment repair, maintenance and installation, offering hot and cold-side expertise for commercial kitchens throughout the greater Pittsburgh area. RMS is a complementary acquisition to AIS Commercial Parts & Service (“AIS”), a previous add-on acquisition completed by Tech24. The combination of AIS and RMS gives Tech24 significantly increased presence and a broader customer base in the greater Pittsburgh region.

“We are excited to add RMS to the Tech24 family,” said Dan Rodstrom, CEO of Tech24. “They come with a strong, established presence in the Pittsburgh area, a great reputation for customer service, and a company culture that is very similar to our existing team.”

Doug McCormick, HCI’s Managing Partner commented, “HCI platform companies like Tech24 are value creators that transform fragmented markets and benefit customers with new services and efficiencies. Tech24’s dynamic growth shows the success of our consolidation and investment strategy, and we think RMS, a management-owned company, is a great addition to Tech24.”

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.

SDS Rx Completes Second Add-on Acquisition

CLARK, NJ, December 1, 2021 – SDS Rx, backed by HCI Equity Partners, announced today it acquired Mission Critical Delivery Solutions, headquartered in Bangor, Maine, on December 1, 2021. SDS Rx is a supply chain solutions provider focused on the last mile healthcare market, specializing in the movement of pharmaceuticals from post-acute care pharmacies to patients as well as the transportation of radiopharmaceuticals. Mission Critical is the second add-on acquisition since HCI’s platform investment. Financial terms were not disclosed.

Mission Critical is a non-asset-based logistics management company that transports critical pharmaceuticals from long-term care pharmacies to patients, with on demand and same-day service. Mission Critical positions SDS Rx to expand service to existing customers in new geographies and adds route density in select geographies.

“We are excited to welcome the Mission Critical team to the SDS Rx family,” said Drew Kronick, CEO of SDS Rx. “Mission Critical has a strong history of success and will substantially increase our presence in the long-term care pharmacy market.”

Doug McCormick, HCI’s Managing Partner commented, “With the acquisition of Mission Critical, SDS Rx is now the leading pure play logistics provider to the long-term care pharmacy industry. HCI looks forward to supporting the SDS Rx team with additional capital as it continues to seek strategic growth opportunities in healthcare logistics and expand its vital services to more healthcare industry customers.”

Jones Day served as legal counsel to SDS Rx.

 

About SDS Rx

SDS Rx is the leading provider of last-mile logistics solutions for the pharmacy and radioactive pharmaceutical market sector. Our industry-leading technology seamlessly integrates with each unique customer to ensure compliance, accuracy, accountability, and transparency.  For more information, please visit www.sds-rx.com.

Tech24 Completes Sixth Add-on Acquisition

GREENVILLE, SC, November 8, 2021 — Tech24, backed by HCI Equity Partners, announced today it acquired Commercial Kitchens, Inc., based in Milford, Connecticut on November 3, 2021. Tech24 is a national provider of repair and maintenance services for food service and commercial HVAC equipment. Commercial Kitchens represents the sixth add-on acquisition in HCI’s consolidation strategy in the highly fragmented foodservice repair market.  Financial terms were not disclosed.

Commercial Kitchens is a founder-owned business, providing repair and preventative maintenance services for commercial grade kitchens to healthcare, education and other institutional customers, across Connecticut, New York and northern New Jersey. The Company has full-service contracts with most of its customers. Commercial Kitchens represents an attractive addition to the Tech24 platform by adding a complementary location in the Tri-state area which provides entry to the institutional foodservice end market.

“We are very pleased to add Commercial Kitchens to the Tech24 family,” said Dan Rodstrom, CEO of Tech24.  “We look forward to working closely with Rich Pinto and the team to offer their fixed cost service model across the entire, growing Tech24 platform. This approach has provided a valuable service model to institutional customers looking for budget certainty.”

Rich Pinto, CEO of Commercial Kitchens, stated, “Our success has been built on bonding with our customers by guaranteeing superior work and deep knowledge about food service technology. We are excited about this opportunity to join with and grow the unique Commercial Kitchens model under the Tech24 national umbrella. Our existing contract partners will continue to receive the same high level of service they have come to expect.”

Doug McCormick, HCI’s Managing Partner commented, “We are pleased with the pace of our acquisitions for the Tech24 platform and the increasing set of capabilities we can provide to our customers.  Commercial Kitchens has a strong history of successfully supporting its customers and provides a specialized expertise to the entire Tech24 organization.”

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.

MSI Completes Third Add-on Acquisition

PORTAGE, IN, October 26, 2021 – MSI Express (“MSI”), backed by HCI Equity Partners, announced today it acquired select operating assets from PacMoore Products, Inc. (“PacMoore” or the “Company”), a founder-owned business, on October 25, 2021. MSI Express is a leading provider of contract packaging and contract manufacturing services, primarily for well-known CPG brands in the liquid and dry food space. PacMoore represents the third add-on acquisition for MSI following HCI’s initial investment in 2018. Financial terms were not disclosed.

MSI acquired all of PacMoore’s contract manufacturing operations located in Hammond, Indiana. PacMoore provides co-manufacturing and co-packaging services similar to MSI’s core business and is located near the rest of MSI’s Indiana facilities. The deal adds capacity and operating capabilities for MSI’s rapidly growing customer needs. The broader PacMoore company is being sold to another buyer who views this operation as non-core to the rest of the Company’s ingredients business.

“PacMoore has built a reputation for excellence within the contract manufacturing industry,” said Charles Weinberg, CEO of MSI. “We are delighted they are joining the MSI family and look forward to building on the legacy of Bill Moore, the CEO and Founder of PacMoore.”

Doug McCormick, HCI’s Managing Partner commented, “PacMoore provides access to new customers and channels and is consistent with our consolidation strategy of adding capacity and complementary capabilities to better serve our growing roster of blue-chip CPG customers. We are excited to welcome the PacMoore team to the combined organization.”

Holland and Knight served as legal counsel to MSI Express. Craig-Hallum Capital Group LLC acted as financial advisor to PacMoore on the transaction.

 

About MSI Express

MSI Express provides contract packaging and contract manufacturing primarily of well-known CPG brands in the liquid and dry food space. Headquartered in Portage, Indiana, MSI Express’ core capabilities include dry mixing and blending, flexible pouches and sachets, liquid blending and filling, standcap pouching, canister filing, lidding, cup filling and pet food filling. For more information, please visit www.msiexpress.com.

WASHINGTON, D.C. (Oct. 7, 2021) – HCI Equity Partners (“HCI”) today announced it has been recognized by Inc. for the second consecutive year as an Inc. 2021 Top Founder-Friendly Investor. Inc.’s list features firms that have the best track record of successfully backing founders and providing the investment and management support they need to help accelerate growth.

HCI, a leading lower middle market private equity firm, focuses on partnering with founder-owned distribution, manufacturing and B2B service companies to rapidly scale their business through acquisition and organic growth initiatives. “With a deep bench of industry experts, senior advisors and an established operations team, HCI brings both capital and know-how to support these founders in achieving their objectives,” said Doug McCormick, HCI Managing Partner.

Inc. compiled the 2021 list by selecting firms that have a successful track record of remaining actively involved in the businesses after their investment. Founders shared about their experiences with private equity firms and data on how their companies grew during the partnership. “HCI’s approach was to put our business relationship first, and that continued every step of the way during the partnership with Summit Interconnect,” said Shane Whiteside, CEO of Summit. “Supported by HCI’s strategy, M&A experience, operational support and expertise in the defense sector, Summit’s revenue grew in excess of 500% during our five years together. We could not have achieved that growth without HCI.”

“We are honored to receive this award in recognition of HCI’s strategy of supporting founders.” said Dan Dickinson, HCI Managing Partner.  “Because over 90% of our investments in the past five years have been with founder and family-owned businesses, we understand their needs and have the capabilities and a playbook to effectively support their journey.”

WASHINGTON, DC, September 27, 2021—HCI Equity Partners, a lower-middle-market private equity firm, is pleased to announce the sale of its portfolio company Summit Interconnect (“Summit”) to affiliates of Lindsay Goldberg, a New York-based private investment firm. The sale was completed on September 22, 2021, and the financial terms were not disclosed.

Summit is a recognized industry leader in quick-turn manufacturing of advanced technology printed circuit boards. Focused on complex rigid and rigid-flex product for customers across the aerospace, defense and other commercial sectors, Summit offers solutions ranging from advanced prototyping to high mix, low-to-mid volume production, and has deep expertise in a wide range of cutting-edge technology applications such as high-speed digital, RF and microwave. The company has facilities in California, Illinois and Toronto, Canada.

Starting in 2016, HCI partnered with industry veteran Shane Whiteside to execute an organic growth and acquisition strategy for Summit in the U.S. printed circuit board industry. Since the initial investment, HCI and Whiteside completed four strategic add-on acquisitions and grew revenue in excess of 500% while growing employee count by over 650.

Shane Whiteside, President and CEO of Summit stated, “I decided to partner with the HCI team because I trusted they would be an excellent, long-term business partner. Their unwavering commitment to our shared vision, strong business acumen and excellence in M&A execution helped accelerate our creation of a preeminent, advanced technology PCB manufacturer. I am very proud of what we have accomplished together.”

Doug McCormick, HCI’s Managing Partner commented, “We are honored to have had the opportunity to work with the Summit team over the past five years. They have delivered great value for our investors and built a better business with a better value proposition for key stakeholders, customers and employees alike. We wish them well in the next chapter of their growth under new ownership.”

Harris Williams acted as financial advisor and McDermott Will & Emery LLP acted as legal counsel to Summit Interconnect on the transaction. Lazard acted as financial advisor and Cravath, Swaine & Moore LLP acted as legal counsel to Lindsay Goldberg.

 

About Summit Interconnect

Summit Interconnect is a leading provider of complex printed circuit boards focused on fast growing defense and high-performance commercial sectors in the North American market. Summit offers solutions ranging from advanced cutting-edge prototyping to complex high mix, low-to-mid volume production. Summit’s five facilities are located across California, Illinois, and Toronto, Canada.  For more information about Summit Interconnect, please visit www.summit-pcb.com.

Tech24 Completes Fifth Add-on Acquisition

GREENVILLE, SC, September 21, 2021 – Tech24, backed by HCI Equity Partners, announced today it has acquired Yukon Refrigeration (“Yukon”) on September 20, 2021. Tech24 is a nation-wide provider of repair and maintenance services for food service and commercial HVAC equipment. Yukon is HCI’s fifth add-on acquisition in the highly fragmented foodservice repair market. Financial terms were not disclosed.

Headquartered in Mount Vernon, Illinois, Yukon is a provider of repair services, preventative maintenance and installation for foodservice and HVAC equipment to customers throughout Southern Illinois. Yukon represents an attractive addition to Tech24’s existing footprint in Illinois and comes with a stable base of tenured technicians and established market share.

“Yukon has a terrific reputation for responsiveness and customer service in Illinois,” said Dan Rodstrom, CEO of Tech24. “We are delighted they are joining the Tech24 family as we grow our national leadership in this vital service industry.”

Doug McCormick, HCI’s Managing Partner commented, “This acquisition is part of our consolidation strategy that is increasing Tech24’s geographic reach and making it a strong competitor to service Illinois’ largest retailers and retail chains. Yukon is a great example of how HCI is focused on partnering with founder-owned companies to help them expand and thrive in today’s markets.”

Quarles & 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.

WASHINGTON, DC (August 18, 2021) – HCI Equity Partners, a leading lower-middle-market private equity firm, today announced that four of their portfolio companies have been featured on Inc. 5000’s 2021 list of fastest growing companies. The recognized platforms include MSI Express, Summit Interconnect, AmerCareRoyal, and WF Cabinetry. Inc. 5000 is the most prestigious ranking of the fastest-growing private companies in North America posting average median growth for the three years ending 2020 of 543%. Together, those companies also added more than 610,000 jobs over the past three years.

MSI Express 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 to include 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 acquisitions and significant organic growth, MSI’s revenue has grown 1,008%, while their employment increased 362% from 2017-2020.

Summit Interconnect is a leading manufacturer of high technology printed circuit boards predominantly serving the defense, high reliability, and prototyping markets. Summit’s revenue and employment grew 229% and 173% respectively from 2017 to 2020 through a combination of acquisitions and organic growth.

AmerCareRoyal is a leading supplier of disposable products for the foodservice, janitorial and healthcare markets in North America. With an established national footprint, AmerCareRoyal sells over 6,000 disposable items to a diverse customer base consisting of foodservice distributors, restaurant chains and other retail establishments. AmerCareRoyal’s revenue grew 189% from 2017 to 2020 through a combination of acquisitions and organic growth initiatives, while their employment increased 244%.

WF Cabinetry 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 that span the U.S.  WF offers a wide variety of door styles, colors, and customizations options while delivering superior quality and construction to its customers. WF’s revenue grew 101% from 2017 to 2020, while their employment increased 146%.

“We are thrilled that 25% of HCI’s platforms have been recognized by Inc. for achieving these spectacular growth metrics,” stated Doug McCormick, Managing Partner of HCI Equity Partners. “These results validate not only the hard work and dedication of the leaders and employees of these companies, but also the effectiveness and consistency of HCI’s partnership model, deep engagement and proven approach to effectively employing M&A as an attractive growth strategy.”

Dan Dickinson, Managing Partner commented, “HCI is honored to partner with the founders of these four companies and the rest of our portfolio to support them in their rapid growth through both acquisitions and organic investments.  HCI is committed to adding value not only by building bigger businesses, but also better, more capable organizations.”

To view the full list of winners and database, visit www.inc.com/inc5000.

 

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.

 

Please note that the contents of this press release should not be construed as investment advice unless explicitly stated as such in the text. Further, it should be noted that this press release should not be construed as the solicitation of an offer to purchase or an offer to sell an interest in any private investment fund managed by HCI Equity Partners or its affiliates.

JGB Expands into Canada with First Add-on Acquisition

 

WASHINGTON, DC, July 20, 2021 – JGB Enterprises, Inc. (“JGB”), backed by HCI Equity Partners (“HCI”), announced it recently acquired Industrial, Petroleum and Mining Supplies Limited d/b/a HosePower Canada (“IPM” or the “Company”).

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. The acquisition of IPM provides JGB entry into the attractive Canadian market and access to a complementary product portfolio and service capabilities.

Headquartered outside of Toronto, IPM is a distributor of hydraulic, industrial and propane hose, fittings and accessories. The Company has six locations across Canada and serves more than 3,000 customers across a variety of end markets including forestry, mining, construction, agricultural, and diversified industrials.

“IPM is a market-leading distribution platform in an industry where JGB has extensive experience and success, and we believe it represents a compelling opportunity to drive operating improvements and geographic expansion,” said Kevin Kilkelly, President of JGB Enterprises.

HCI Managing Partner Doug McCormick commented, “IPM is an exciting acquisition that will accelerate JGB’s growth while also expanding the company’s ability to serve its customers with a robust line of industrial and hydraulic products. We look forward to supporting the JGB team with additional capital as it continues to execute its acquisition growth strategy.”

Greenberg Traurig, LLP and McMillan LLP served as legal counsel to JGB. CIBC Mid-Market Investment Banking acted as the exclusive financial advisor to IPM. Folger, Rubinoff LLP served as legal counsel to IPM and Baker Tilly LLP advised on accounting and tax matters.

The transaction closed on June 10, 2021. Terms of the transaction were not disclosed.

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 is headquartered in Liverpool, NY with additional locations in Buffalo, NY, North Carolina, Missouri, and Texas. For more information, please visit www.jgbhose.com.

Summit Interconnect Expands with Fourth Add-on Acquisition

 

ANAHEIM, CA and WASHINGTON, DC, June 3, 2021 – Summit Interconnect (“Summit”), backed by HCI Equity Partners (“HCI”), announced it acquired Eagle Electronics (“Eagle” or the “Company”) on June 1, 2021. Summit is a manufacturer of advanced technology printed circuit boards with expertise focused on complex rigid and rigid-flex product. With the acquisition of Eagle, Summit’s growing position in the North American printed circuit board prototyping market will create new cross-selling opportunities and introduce a highly complementary product offering. Eagle is the fourth company to join HCI’s platform following its initial investment in Summit. Financial terms of the transaction were not disclosed.

Headquartered outside of Chicago, Illinois, Eagle Electronics is a printed circuit boards manufacturer focused on high-performance applications for the aerospace and defense, commercial and other industrial end-markets. Eagle specializes in highly customized quick-turn prototyping and manufacturing of a range of highly engineered rigid and rigid flex printed circuit boards.

Shane Whiteside, President and CEO of Summit stated, “Eagle is an impressive operation with an experienced and highly capable management team. This acquisition aligns Eagle’s extensive prototyping experience and commercial market reach with Summit’s differentiated production capabilities. Their investments in advanced technology capabilities parallel the equipment set of Summit’s factories. Eagle brings new capabilities that further strengthen our ability to serve customers in both high-performance commercial and defense markets, as well as broaden our relationships with key suppliers. This is very exciting news for both Summit and Eagle, and we welcome our new Illinois employees to the Summit team.”

Doug McCormick, HCI’s Managing Partner commented, “This acquisition enhances both Summit’s and Eagle’s complementary capabilities in the high reliability and prototype markets, and adds to Summit’s reputation as the consolidator of choice in the fragmented North American printed circuit board business.”

McDermott, Will & Emery served as legal counsel to Summit.

About Summit Interconnect

Summit Interconnect is a leading manufacturer of advanced technology printed circuit boards. Manufacturing services include quick turn, prototype and production through our advanced technology facilities located in California and Toronto, Canada. For more information, please visit www.summit-pcb.com.