JGB Enterprises, Inc. Named to Industrial Distribution’s 2020 Big 50 List

Liverpool, NY, October 2020

JGB Enterprises, an assembler and supplier of industrial and hydraulic hose and hose accessories, has been named to Industrial Distribution’s Big 50 List for the third year in a row. The list recognizes the country’s biggest industrial distributors based on revenue. JGB moved up five spots since HCI’s acquisition in December 2018.

Since 1977, JGB has been a leading supplier of hoses and hose assemblies for commercial and military applications throughout the world. The Company’s products are used in a variety of end markets, including oil and gas, agriculture, mining, construction, marine, chemical, food and government. JGB serves over 4,000 customers annually and its products facilitate the conveyance of liquids, gases and dry bulk materials for end-users. JGB offers one of the broadest portfolios of hose and hose assembly products in the industry. The Company’s hoses are selected and assembled to meet specific size, pressure, temperature and material requirements in critical applications.

Read more about JGB on Industrial Distribution’s Big 50 list here. HCI is currently seeking add-on acquisitions for JGB. The criteria for add-ons can be found here or contact Kelsey Clute at kclute@hciequity.com.

Alexander City, AL, September 2020

Wellborn Forest, backed by HCI Equity Partners, announced it acquired De Pere Cabinet, Inc. (“DCI” or the “Company”) on September 16, 2020. Wellborn Forest is a manufacturer of semi-custom cabinets serving the single-family residential market. The acquisition of DCI provides Wellborn Forest with geographic expansion into the upper Midwest, enhanced customer diversification and a high quality, complementary product offering. Financial terms of the transaction were not disclosed.

Headquartered in De Pere, Wisconsin, DCI is a manufacturer of modular, semi-custom kitchen cabinets primarily for single-family residences. The Company’s cabinets are sold exclusively through dealer channels under the Countryside Cabinet brand name and offer customers a comprehensive collection of cabinetry to fit any style, project or budget. DCI’s unique, customer-driven manufacturing process provides the end user with a largely customizable selection of products and options at an attractive price point.

Tim Wellborn, CEO of Wellborn Forest, stated, “We are very excited about partnering with DCI. The Company has a great reputation in the industry with their Countryside Cabinet brand and we look forward to providing a broader product offering to our combined customer base”.

Dan Dickinson, HCI Managing Partner commented, “DCI is highly complementary to Wellborn Forest. It adds key new customer relationships and combines two exceptional teams with best in class capabilities in their respective markets.

McDermott, Will & Emery served as legal counsel to Wellborn. TKO Miller served as the financial advisor to De Pere Cabinet, Inc.

About Wellborn Forest

Wellborn Forest is a designer and manufacturer of semi-custom wood kitchen and bath cabinets serving the single-family residential market exclusively through the dealer channel. Wellborn is based in Alexander City, AL and its core geography is in the Southeastern and Eastern United States. For more information, please visit www.wellbornforest.com.

 

Anaheim, CA, July 2020

Summit Interconnect (“Summit”), backed by HCI Equity Partners, announced it acquired Integrated Technology Ltd. (“ITL Circuits” or “ITL” or the “Company”) on July 24, 2020. Summit is a manufacturer of advanced technology printed circuit boards with a specific focus on complex rigid and rigid-flex product. The acquisition of ITL provides the Summit platform with cross-selling opportunities and enhanced scale. ITL is the third company to join the platform following HCI’s initial investment in Summit. Financial terms of the transaction were not disclosed.

Established in 1971 and located in Toronto, Canada, ITL Circuits is one of North America’s leading providers of printed circuit boards. The oldest and largest privately held PCB manufacturer in Canada, ITL Circuits provides a significant expansion of Summit’s operations in North America.

ITL Circuits has a long track record of servicing military programs for the Canadian Department of National Defense (DND), Australian Defense Force (ADF), and United States DOD. The Company also provides products for other aerospace and defense, medical, and commercial end markets.

Shane Whiteside, President and CEO of Summit Interconnect, Inc. stated, “ITL’s capabilities complement Summit’s and will provide additional volume manufacturing capacity across a broad range of technology. The additional and meaningful scale will further strengthen our ability to serve our customers and broaden our relationships with key suppliers. This is very exciting news for both Summit and ITL and we welcome our new Toronto employees to the Summit team.”

Doug McCormick, HCI Equity Managing Partner commented, “ITL provides Summit with an attractive customer roster, capabilities and capacity to serve the rapidly growing advanced technology market of North America. We are very pleased with the strong momentum and recognition Summit is achieving in the market.”

McDermott, Will & Emery served as legal counsel to Summit. Firepower Capital served as the financial advisor to ITL Circuits.

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.

Clark, NJ, June 2020

Strategic Delivery Solutions (“SDS Rx”), backed by HCI Equity Partners, announced it acquired Medical Delivery Services (“MDS” or the “Company”) on June 23, 2020. SDS Rx is a supply chain solutions provider focused on the last mile healthcare market, specializing in the movement of pharmaceuticals from wholesale distributors to pharmacies and from pharmacies to patients in facilities. The acquisition of MDS brings SDS Rx into new geographies and builds density in existing geographies. It also provides access to a new healthcare end market, radiopharmaceuticals. Financial terms of the transaction were not disclosed.

Headquartered in Tampa, Florida, MDS manages the transportation of radiopharmaceuticals, which are primarily used in diagnostic imaging and, in larger doses, to treat disease. The Company has a presence in 20 states, with a high concentration the Northeast and South.

“We are very excited about the acquisition of MDS and its unique position in the market. MDS brings specialization, experience and a skillful team to SDS Rx” said Drew Kronick, CEO of SDS Rx.

Doug McCormick, HCI Equity Managing Partner commented, “The acquisition of MDS combines two exceptional management teams with best in class capabilities in their respective markets and represents a significant achievement in SDS’ strategy to become a dominant pure play logistics provider to the healthcare industry.”

Jones Day served as legal counsel to SDS Rx.

About Strategic Delivery Solutions

SDS is the leading provider of logistics and delivery solutions focused on the last mile healthcare market. The Company specializes in the movement of pharmaceuticals from wholesale distributors to retail and pharmacies and from pharmacies to patients in facilities. For more information, please visit www.sds-rx.com.

Greenville, SC, June 2020

HCI Equity Partners is pleased to announce its acquisition of Tech24, a national provider of installation, preventative maintenance and emergency repair services for foodservice and HVAC equipment. The Company serves convenience stores, restaurants, coffee shops and concession operations, among other foodservice establishments. Tech24 has meaningful scale and a national footprint, serving 50 metro markets in 25 states.

Seeking Add-ons

Tech24 seeks to build further scale, diversity, capabilities and geographic density through M&A partnerships. HCI’s add-on criteria includes:

• Other food and beverage equipment service companies
• Adjusted EBITDA of at least $1 million
• Based in North America, with a focus in the U.S.

Please contact Tim Frend at tfrend@hciequity.com if you know of any possible add-ons.

El Segundo, CA, January 2020

HCI Equity Partners is pleased to announce its investment in Pacific Defense, a new defense electronics platform. The platform consists of two initial investments: Spectranetix and Perceptronics. Spectranetix, headquartered in Sunnyvale, CA, provides open architecture systems to a variety of ground, sea and air military platforms to address constantly evolving electronic warfare threats. Perceptronics, located in Falls Church, VA, provides artificial intelligence, decision support and machine learning software to defense applications. Pacific Defense serves all branches of the U.S. Dept. of Defense as well as Defense Primes.

The Pacific Defense platform is will be led by Travis Slocumb and a team of executives with over 100 years of collective experience in the defense industry.

Portage, IN, December 2019

MSI Express, backed by HCI Equity Partners, announced it acquired Power Packaging (“Power” or the “Company”) on December 31, 2019. MSI Express is a leading provider of contract packaging and contract manufacturing services, primarily for well-known brands in the shelf-stable human and pet food space. The acquisition of Power further expands MSI Express’s presence, capabilities, and customer relationships. Power is the third company to join the platform following HCI’s August 2018 investment in Express Packaging and its May 2019 investment in Manufacturing Solutions Internation (“MSI”). Financial terms of the transaction were not disclosed.

Power Packaging has four production facilities with approximately one million square feet—two locations outside Chicago, one in Wisconsin, and one in Texas. The Company serves leading Consumer Packaged Goods companies (“CPGs”) and adds capabilities such as aseptic beverage filling, stick packaging, and filling of jars, cans, and bag-in-box containers. Power also brings MSI Express into new food categories such as powdered beverages, soups and bases, baking mixes, beverage mixes, coffees and teas, food service beverages, dinner kits, pastas, rice, side dishes, and salad dressings.

The combined platform now has 12 production facilities with approximately two million square feet spanning Indiana, Illinois, Ohio, Wisconsin, and Texas. In addition to its core capabilities in primary packaging, it also provides secondary packaging, warehousing, distribution, and fulfillment services. Its facilities are SQF Level 3 certified and a number are also FDA registered and NSF certified.

“We are very excited about coming together with Power. It has a track record of more than 50 years of excellence in the industry. We look forward to offering our combined customer base a further expanded suite of services, deeper expertise, and the highest quality and on-time delivery standards,” said Charles Weinberg, CEO of MSI Express.

“Power is highly complementary to MSI Express,” stated HCI Managing Partner Doug McCormick. “It adds key new customer relationships and capabilities, solid team members, additional density in the Midwest—the largest co-packing/co-manufacturing market in the United States—and a foothold in Texas that enables MSI Express to serve the attractive local market and better serve the Southeast.”

Kirkland & Ellis served as legal counsel to MSI Express. FINNEA Group served as the financial advisor to Power Packaging.

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’s core capabilities include dry mixing and blending, flexible pouches and sachets, liquid blending and filling, standcap pouching, canister filling, lidding, cup filling, and pet food filling. For more information, please visit www.msiexpress.com.

Charleston, SC, November 2019

AmerCareRoyal (“ACR”), backed by HCI Equity Partners, announced it has acquired McNairn Packaging (“McNairn” or the “Company”) on November 25, 2019. ACR is a leading provider of disposable products used in the foodservice, janitorial, sanitation, industrial, hospitality and medical industries. The acquisition further diversifies AmerCareRoyal’s supply base and provides complementary new product categories. Financial terms of the transaction were not disclosed.

Founded in 1882, McNairn Packaging is a market leading provider of specialty paper packaging products to national food chains and distributors in North America. The Company’s products include paper and foil sheets, bags and interfolds. McNairn has operations in Whitby, Ontario and Westfield, Massachusetts.

“The acquisition of McNairn Packaging will provide AmerCareRoyal with an expanded offering of paper and other foodservice products not currently in our product portfolio. The addition of these products and the wealth of knowledge the McNairn team has in this product area will further extend our ability to service AmerCareRoyal customers with an even wider range of product solutions,” said Ty King, CEO of AmerCareRoyal.

“HCI is pleased to support AmerCareRoyal in the acquisition of McNairn, the sixth in five years,” said HCI Managing Partner Doug McCormick. “McNairn brings complementary relationships, products and geographic coverage, as well as additional scale, with the combined entity expected to generate proforma revenues in excess of $500 million.”

Greenberg Traurig served as legal counsel to AmerCareRoyal. PWC Corporate Finance served as the financial advisor to McNairn.

 

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. Headquartered in Charleston, SC, AmerCareRoyal supplies cutlery, straws, gloves, point of sale products, napkins, and eco-friendly products from multiple shipping points across the United States. ACR’s 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.

 

Poestenkill, NY; November 2019

HCI Equity Partners is pleased to announce it successfully completed the sale of Dynamic Systems, Inc. (“DSI”) to Vishay Precision Group (NYSE: VPG) on November 1, 2019.

DSI, headquartered in Poestenkill, New York, is a leading designer and manufacturer of dynamic thermal-mechanical testing and physical simulation systems used for metallurgical analyses in a wide variety of industries. The Company’s Gleeble® system allows users to accurately predict how alloys will perform in processing or end-use applications. DSI’s simulation systems can be used in product design and manufacturing, quality control and materials research and development.

 

Milan, TN, September 2019

HCI Equity Partners is pleased to announce it successfully completed the sale of Milan Supply Chain Solutions to Wellspring Capital Management on September 30, 2019.

Headquartered in Milan, Tennessee, Milan is a leading supply chain logistics provider, specializing in dedicated contract transportation and value-added distribution services. The Company’s truckload service offering consists of short- and medium-haul runs (approximately 500 miles per trip) and dedicated shuttle runs, which average 100 miles per trip. Milan also provides a rapidly growing freight brokerage service to serve customers nationwide. The Company’s full-service distribution and warehousing division provides space and logistics services to its customers as needed, focusing on inventory turn in its locations in Milan and Jackson, TN. Milan’s management team has driven sustainable organic growth through their continued focus on numerous key performance indicators and a best-in-class driver retention program.