U.S. private equity firm Atar Capital has acquired Microcel Corp, a Newmarket, Ontario-based distributor of consumer electronics products in North America.
No financial terms were released for the deal, which closed on November 19.
Atar partnered with Rick Henry, who founded Microcel in 1989. Henry will remain a shareholder as well as the company’s president and CEO.
Microcel offers exclusive distribution arrangements with global technology brands and distributes to a network of more than 5,000 consumer electronics stores, big-box retailers and specialty retailers.
The investment, which will support Microcel’s growth, marks Atar’s first platform deal in Canada.
Atar Capital Acquires Microcel, A Leading Distributor of Technology Products, Based in Canada
Investment Marks Atar’s Second Acquisition Within the Past Month First Platform Investment in Canada
LOS ANGELES, Nov. 26, 2018 /CNW/ — Atar Capital, a global private investment firm, today announced that it has completed the acquisition of Microcel Corporation, a leading distributor of technology products in Canada, partnering with Rick Henry, Founder of Microcel. Henry will remain a shareholder and will continue as Microcel’s President and CEO. The transaction was officially closed on Monday, November 19, 2018.
“We are excited to partner with Rick and the Microcel team on this transaction. We see tremendous opportunity in Canada’s growing retail and e-commerce markets,” said Cyrus Nikou, Founder and Managing Partner at Atar Capital. “Microcel’s best-in-class portfolio of brands within the Canadian consumer electronics space, complimented by Atar’s direct-to-consumer, e-commerce and digital marketplace platforms, will serve as a catalyst for growth,” added Nikou.
“Microcel has developed a leading position distributing global technology brands into the Canadian retail market. After speaking with several potential partners, I found Atar’s retail and operational expertise, and their flexibility, speed and growth-oriented investment philosophy, to be a true differentiator that will help catapult Microcel’s market position, going forward. I am looking forward to accelerating the growth of Microcel with our new partners,” said Henry.
Originally founded in 1989 in Newmarket, Ontario, the Company offers exclusive distribution arrangements with high value brands, as well as a proven multi-channel network that includes Canada’s most prominent consumer electronics stores, big-box retailers and specialty retailers. Microcel works with leading brands such as GoalZero, Polk, Belkin, fitbit and Logitech.
Robert Lezec, Senior Managing Director at Atar, added “Atar’s e-commerce, retail and distribution bench strength is strong and deep. We believe that combining our sector expertise with Rick’s unparalleled product vision will lead to significant value creation for Microcel.”
Nikou led the Atar deal team that also included Senior Managing Director Robert Lezec and Managing Directors Stanley Huang and Vijay Mony. Ryan Craver, part of Atar’s Senior Advisory Group, provided subject matter expertise for the transaction.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provides a unique edge in identifying and creating value and working as a true partner to portfolio companies. The firm assists with initiatives to grow the business and improve operations, leveraging all of the resources available through Atar’s global platform, including a bench of seasoned senior advisors with deep sector and functional expertise.
About Atar Capital
Atar Capital (www.atarcapital.com) is a global private investment firm that benefits from over 60 years of combined investing, operational and management expertise. Atar’s principals have completed over 62 private equity transactions across North America and Western Europe. Headquartered in Los Angeles, Atar Capital’s unique deal origination, M&A and operating capabilities enable its portfolio companies to achieve their “Full Potential”.
Since its inception in 1989, Microcel has become one of Canada’s preeminent consumer electronics distributors, providing access to the Canadian retail market to prominent global OEM vendors such as GoalZero, Polk, Belkin, fitbit and Logitech covering a wide variety of product types, from wearables, portable audio, computer and telephony accessories, to smart home and outdoor tech solutions. Based in Newmarket, Ontario, Microcel leverages its superior product marketing and logistics support and distributes to a network of over 5,000 points of purchase for some of Canada’s largest big box retailers, electronic stores, e-commerce, and specialty outdoor stores such as Walmart, the Source, Best Buy, Amazon, and Indigo Books & Music, among many others.
For further information: TJ McCaffrey, Atar Capital, Director, + 1 (310) 870 1867, firstname.lastname@example.org, http://www.atarcapital.com