Rotunda Capital Acquires Munch’s Supply Co.
Acquisition of Leading HVAC Distributor Builds a Platform for Expansion
WASHINGTON and CHICAGO (April 2, 2015) – Rotunda Capital Partners (Rotunda Capital), a lower-middle-market private equity investment firm, has acquired a majority stake in Munch’s Supply Co, Inc., a leading HVAC distributor and third-generation family business operating in Chicago and Northwest Indiana. The financial terms of the investment were not disclosed.
“Munch’s Supply has built a robust business over 60 years, driven by providing superior products and incredible service,” said Corey Whisner, a partner at Rotunda. “We are thrilled to partner with their existing team to help them reach their next level of growth through continued leadership in the greater Chicago market as well as expansion into new regions.”
Munch’s Supply operates out of seven branches in Chicago and Northwest Indiana, distributing heating and cooling supplies from over 350,000 square feet of warehouse space to area dealers and contractors. Company CEO Robert Munch, as well as the rest of the management team, will remain at the helm of the growing company.
“As we evaluated our options for growing the company, it became clear that Rotunda was an ideal partner for us to assist our company in the next stage of expansion,” said Munch. “The firm brings tremendous expertise in the distribution space, and we’ve outlined a strategy together that will allow us to aggressively expand to new regions while continuing to invest in our core Chicago market.”
“We see tremendous opportunities for Munch’s Supply to move into other markets through acquisitions of like-minded distributors in other regions,” added Dan Lipson, a partner at Rotunda. “Their culture of service, cultivated through 60 years of family ownership, will continue and offers a tremendous platform for growth, both in Chicago and elsewhere, and we look forward to working with Bob to accomplish his goals for the company.”
Livingstone served as the exclusive financial advisor to Munch’s Supply.
About Munch’s Supply Co, Inc.
Munch’s Supply Co. was founded in 1956 by founder Willard Munch, who wanted to develop a local source of supplies for area contractors. Today, the company is a third generation family business focused exclusively on supplying heating and cooling industry contractors with quality products. With a focus on service honed over 50 years and as a leading distributor for trusted brands such as American Standard and Trane, Munch’s Supply continues to serve as the premier source for HVAC contractors throughout the greater Chicago area.
About Rotunda Capital
Rotunda Capital Partners is a private equity firm that invests equity capital in established and profitable lower middle market companies. As an independent deal sponsor, Rotunda Capital raises and invests the capital of its principals, family offices and high net worth individuals on a deal-by-deal basis. The firm uses a rigorous approach to identify market-leading companies with identifiable growth opportunities and capable management teams in targeted sectors, including distribution, logistics, specialty finance, and business services. Rotunda Capital partners with industry leading operating executives to grow each portfolio company. Since 2009, Rotunda Capital has completed eight platform investments and realized two exits. The partners of Rotunda Capital have collectively invested more than $1.6 billion in more than 30 companies, providing experience and drawing on deep industry and financial relationships to contribute to the successful execution of Rotunda’s companies’ strategic plans.
LANE (for Rotunda Capital)