PIPP MOBILE STORAGE SYSTEMS COMPLETES STRATEGIC ACQUISITION OF IRSG
IRSG Gives Pipp, Already the Market Leader, a Broader Offering in Inventory Management
CHICAGO, Ill.—September 28, 2011: Chicago-based Prospect Partners, LLC, a leading private equity firm investing in smaller lower-middle-market companies, today announced it has completed a strategic acquisition for platform company Pipp Mobile Storage Systems, Inc., of Walker, Mich., the nation's leading supplier of mobile storage solutions for retail, hospitality, foodservice, and commercial office markets. In a move that expands its inventory management product line, Pipp acquired the International Retail Services Group (IRSG) division of Capsa Solutions, LLC, of Columbus, Ohio.
Established in 1968, IRSG quickly became the market leader in hanger management after introducing its highly innovative product, known as Hanger Tight, which significantly improved the efficiency by which retailers could cycle hangers through their stores. IRSG now sells more than 200 products that help users move inventory easily and efficiently. Its mobile line includes garment transfer racks, storage carts, and metal work tables for on-floor merchandising tasks like folding, recovery, and pricing. IRSG is well-known throughout the industry for its quality products and customer service.
"With solutions for everywhere from the stock room to the sales floor, Pipp has become a 'one-stop shop' for those who seek to efficiently use their space, increase productivity, and improve organization in their stores, offices, and warehouses," said Erik Maurer, a Principal at Prospect Partners. "Over the last few years, Prospect Partners cultivated its relationship with IRSG and its owners. When the time was right for a strategic sale, we were able to be creative, move quickly, and get the deal done in less than 90 days — all actions Prospect strives to accomplish on every deal."
Pipp's mobile products, which include lateral and electrical storage systems, free up space by compacting storage and eliminating fixed aisles, creating a single aisle system that increases storage capacity by as much as 80 percent. Pipp also sells wall shelving and storage accessories.
IRSG is Pipp's second acquisition. In 2007, Pipp bought Denstor Mobile Storage systems, Inc., which helped to increase the company's exposure in markets outside of retail, such as hospitality, foodservice, and healthcare.
As a division of Pipp, IRSG will remain based in Itasca, Ill., and will maintain its sourcing office in Woodinville, Wash.
About Prospect Partners,
Prospect Partners is a leading private equity firm investing in smaller lower-middle-market companies, managing $470 million in three funds. A highly experienced, active, and committed investor, Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues typically between $10 million and $75 million. Since 1998, Prospect Partners has invested opportunistically nationwide in more than 80 companies in a broad range of niche manufacturing, distribution, and specialty service markets. Based in Chicago, Prospect Partners also has an office in Menlo Park, Calif.
About Pipp Mobile Storage Systems, Inc.
Since 1981, Pipp Mobile Storage System's mission has been to design space-saving systems that are responsive to customers' specific storage needs. Pipp solves storage problems for retail stores, offices, companies, and institutions worldwide. Pipp manufactures to the highest quality and provides an unsurpassed level of customer service. In addition to its mobile carriage systems and shelving systems, Pipp offers an extensive product line that includes perimeter wall storage and hanger storage systems as well as a broad line of accessories. www.pippmobile.com