Prospect Partners Recapitalizes QMI Security Solutions
Prospect Partners is excited to announce its recapitalization, with management, of QMI Security Solutions, Inc. (QMI), of Itasca, Ill.
QMI is the leading manufacturer of physical security and protection products for commercial and residential applications, offering stylish, high-quality barriers that deter retail break-ins, prevent theft, and protect against storms. QMI provides security protection for both exterior and interior spaces in addition to repairs and replacements. The company's custom products include rolling shutters for storefronts, counters, and cases, as well as side folding shutters, hurricane rolling shutters, and screens. QMI reaches a diverse customer base of retail bank chains, mass merchandisers, pharmacies, wireless stores, and households in the U.S., Canada, Mexico, and the Caribbean. Jim Miller, who founded the business in 1986, will continue to lead QMI as President and CEO.
"QMI is an exceptional niche market leader, with top-rated products, a deep commitment to innovation, and a 'customer-first' operating strategy," said Brett Holcomb, a Principal of Prospect Partners. "QMI has consistently set the industry standard for product design and capabilities. We are excited to partner with Jim and his team to continue building upon the company's strong brand going forward."
QMI seeks add-on acquisitions of manufacturers of physical security products for a variety of end markets.
To discuss related opportunities, please contact Brett Holcomb, Rick Tuttle, or Molly Clark.
Prospect Partners Completes Sale of Velvac, Inc.
Prospect Partners has sold its interest in Velvac, Inc., the premier designer and manufacturer of proprietary vision technology for commercial vehicles, to The Eastern Company ("Eastern") (NASDAQ: EML).
Founded in 1934, Velvac serves diverse markets within the heavy and medium duty truck, motorhome and bus markets. Velvac is a Tier 1 supplier of mirrors and camera-enabled vision systems, and sells its aftermarket components and vision systems through aftermarket channels as well as directly to OEM dealers and OEM parts distribution centers.
"Velvac has been a highly rewarding investment for Prospect Partners," said Rick Tuttle, a Founding Principal of Prospect Partners. "It has been an honor to partner with a terrific management team, provide capital support for select strategic acquisitions, and be part of Velvac's exciting transition from an RV-centric supplier to the leading player in multiple attractive niche markets."
Added Prospect Partners' Principal Erik Maurer: "Velvac's Jeff Porter was a great CEO partner who built a first-class operating team and deftly guided the company into new product markets, new distribution channels, and a strong position in every segment it entered."
A leading innovator of proprietary vision systems for commercial vehicles and motorhomes, Velvac introduced its first camera-enabled vision system in 2006 and now sells approximately 45,000 camera-enabled units annually. Velvac recently introduced its Road-iQ™ 360-degree view camera, recording and communication system, and announced TrailerLink™, a new patent-pending solution that supports trailer-to-tractor video and data communications.
"Prospect Partners has been tremendous to work with these past 11 years," said Velvac's CEO Porter. "They supported our management team in good times and bad. Their support during the depths of the Great Recession laid the groundwork for our emergence from the downturn as a much stronger competitor and propelled Velvac to rapid growth these last seven years. The professionalism and integrity exhibited by the Prospect Partners team during their investment period was unmatched."
To discuss related investment opportunities, please reach out to Rick Tuttle, Erik Maurer, or Molly Clark.
Prospect Partners Promotes Brett Holcomb and Brad O'Dell to Principal
Prospect Partners is pleased to announce the promotions of Brett Holcomb and Brad O'Dell to Principal, effective immediately.
Holcomb and O'Dell both joined Prospect Partners as Vice Presidents in 2009. They have played leading roles in analyzing and developing investment opportunities, structuring deals, overseeing due diligence, closing transactions, and managing portfolio companies that occupy widely diverse niche industries.
"We are excited to recognize Brett and Brad, who have been exceptional assets to our team," said Rick Tuttle, Founding Principal. "A guiding mission of our firm has always been to bring on board talented investment professionals who are also passionate about helping entrepreneurs build their companies into true market leaders. Brett and Brad have long been providing wise and enthusiastic counsel to our portfolio companies, and deserve this recognition."
Added Erik Maurer, Principal: "Brett and Brad are strong deal leaders who are making a tremendous contribution to our firm's success in many areas, including deal identification, execution, management, and exit. We feel very confident in their abilities, continued contributions, and increased firm leadership in their expanded role as a Principal of Prospect Partners."
Read the complete press release here.
Prospect Partners Completes Sale of Kronos Foods
Prospect Partners has sold its interest in Mediterranean food manufacturer and distributor Kronos Foods, Inc. (Kronos), of Glendale Heights, Ill. Prospect Partners initially acquired Kronos in 2004.
Kronos's roots date back to 1975, when the Greek food company developed and marketed the first pre-formed gyro cones. Since that time, Kronos has become a highly differentiated manufacturer of Mediterranean and other premium foods, with distribution nationwide through foodservice channels and major retailers, including broadline and specialty distributors, club stores, mass merchants and grocery chains. Its products include gyros meat, pita/flatbreads, hummus, sauces, and desserts primarily under the Kronos and Sinbad Sweets brands. Kronos also produces custom products for QSR, fast-casual, and family dining restaurant chains.
"Kronos has achieved substantial growth through the leadership of its management team, led by CEO Howard Eirinberg," said Lou Kenter, a Founding Principal of Prospect Partners. "We were fortunate to support significant growth initiatives that included a new state-of-the-art 208,000-sq-ft facility in Glendale Heights, extending the product line, and expanding nationwide distribution. The Kronos team did a great job executing the plan and building on the Kronos brand to become the leading company in the Mediterranean food category."
Added Brad O'Dell, a Vice President of Prospect Partners, "With its focus on delivering a wide line of authentic, great-tasting Mediterranean and other specialty foods, Kronos was able to differentiate itself in the market. What's more, we had a lot of fun working with such an energetic team with a deep passion for the business."
Said Kronos CEO Eirinberg: "Prospect Partners has been a terrific partner in every respect. The team shared our entrepreneurial drive and steadfast commitment to product innovation and quality and helped us become the market leader we are today. We are very excited to build on this platform and to continue to enhance the Kronos brand."
Prospect Partners sold Kronos to another private equity firm and management.
To discuss related food and foodservice investment opportunities, please contact Lou Kenter, Brad O'Dell, or Molly Clark.
Prospect Partners Announces Investment in All Glass & Windows
Prospect Partners is excited to announce its investment in All Glass & Windows, Inc. and Direct Window & Door Supply, Inc. (together, "All Glass & Windows"), of Sarasota, Fla.
All Glass & Windows installs and distributes impact-resistant glass and glass-related products for general contractors and builders serving residential, commercial and retail customers across Florida. Many of the company's products, which include windows, doors, and commercial storefront and curtain walls, are made with glass that can withstand hurricane-force wind speeds of up to 180 mph. All Glass & Windows offers comprehensive, full-service project management for new construction, in addition to the renovation and replacement market. The company is led by David Fleeman, President, and Chris Harris, CEO.
"All Glass & Windows is fast-growing, with an exceptional reputation for product quality, execution and customer service," said Prospect Partners Founding Principal Rick Tuttle. "We are thrilled to support the management team, proven operators in the niche glass and glazing market with strong relationships and deep industry knowledge, as they continue to build their business and deliver superior service and innovative solutions to their customers."
Going forward, All Glass & Windows plans to expand its service offering and enter adjacent markets. The company actively seeks to acquire providers of glass installation and/or distribution services in Florida and other southeastern states.
To discuss related opportunities, please contact Rick Tuttle, Mike McInerney, or Molly Clark.
New Platform Waste Harmonics Acquires Consolidated Waste Management
Waste Harmonics, a leading provider of outsourced waste management services, has acquired waste broker waste broker Consolidated Waste Management, LLC (CWM). Prospect Partners also partnered with independent sponsor Expedition Capital Partners, LLC, in the transaction.
CWM, with offices in Columbus, Ohio, and Hartford, Conn., increases the presence of the rapidly-growing Waste Harmonics. Waste Harmonics offers an integrated outsourced waste management solution for North American companies with multiple locations spread across a wide geographic territory. Its programs cost-effectively consolidate all components of its customers' waste-management needs, including pick-up, hauling, recycling, sustainability, invoicing, and reporting.
"One of our top objectives is to support management's ability to make add-on acquisitions of other strong waste brokerage companies that expand Waste Harmonics' reach and services," said Maneesh Chawla, a Principal of Prospect Partners. "CWM is a well-run business with loyal customers and a great cultural fit."
Going forward, Waste Harmonics continues to seek acquisitions of other waste brokers and waste services providers.
To discuss related opportunities, please contact Maneesh Chawla, Brett Holcomb, or Molly Clark.
Platform Prospect Water Co. Completes 15th Add-On
Water treatment services provider Prospect Water Co. continues its torrid acquisition pace. The water treatment platform has completed 7 add-ons since April, 2015. Its latest, Gulf Coast Water Solutions, of Fort Walton Beach, Fla., brings the platform's add-on total to 15, and marks a "new region for us," said Lou Kenter, a Founding Principal of Prospect Partners. "We are very excited to continue to build our presence in the Southeast."
In addition to Culligan dealers, which primarily serve residential end-markets, Prospect Water Co. also seeks acquistiions of filtration and processing dealers reaching commercial and industrial users.
Prospect Water Co.'s franchises now serve customers in 12 states from coast to coast: Alabama, California, Connecticut, Florida, Illinois, Indiana, Massachusetts, New York, Ohio, Oregon, Rhode Island, and Washington.
To discuss related opportunities, please contact Lou Kenter, Mike McInerney, or Molly Clark.