Cortec Group exits Barcodes

Cortec Group said Jan. 23 that it sold BC Group Holdings Inc, known as Barcodes, to Odyssey Investment Partners LLC. Financial terms weren’t announced. Barcodes, of Chicago, distributes automatic identification and data capture products and services to small and medium sized businesses in the U.S., Canada and the U.K.

PRESS RELEASE
Cortec Group Announces the Sale of BC Group Holdings, Inc.
January 23, 2019
(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm which invests in middle-market distribution, consumer, healthcare, and specialty products and services businesses, is pleased to announce that its affiliate, Cortec Group Fund V, L.P. (“Cortec Fund V”), has sold BC Group Holdings, Inc. (“Barcodes” or the “Company”) to affiliates of Odyssey Investment Partners, LLC (“Odyssey”). Terms of the transaction were not disclosed.
Based in Chicago, IL, Barcodes is a leading distributor of automatic identification and data capture (“AIDC”) products and services (e.g., barcode scanners, mobile computers, label printers, point-of-sale systems, and related consumable products, software, and integration services) and identification card and access control (“ID”) products and systems. The Company primarily serves small and medium-sized businesses and select Fortune 500 customers throughout the U.S., Canada, and U.K. Additional information on Barcodes is available at www.barcodesinc.com.
Cortec acquired Barcodes in November 2012. Through an aggressive growth strategy executed during Cortec’s ownership, Barcodes meaningfully expanded its product and service offerings, customer base, and geographic presence, becoming a leader in the AIDC and ID card markets in North America and the U.K. David Schnadig, a Managing Partner at Cortec, stated, “Our investment in the business over the last six years to expand Barcodes’ leadership team, build the sales organization, enhance its eCommerce capabilities, improve systems, and complete several strategic acquisitions has enabled management to significantly grow the Company’s revenue and earnings.” Michael Najjar, also a Managing Partner at Cortec, added, “We are very pleased with the outcome for Barcodes’ shareholders and believe that Odyssey will be a terrific partner for the management team going forward.”
Daniel Nettesheim, CEO of Barcodes, added, “Cortec has been there for us every step of the way over the past six years. Their understanding of our business and commitment to investing in our long-term success has proven invaluable as we have built Barcodes both organically and through acquisition and created a strong platform for future growth.”
The Cortec team included David Schnadig, Michael Najjar, Bill Tucker, and Jacob Grossetti. Barcodes was co-advised in the transaction by BlackArch Partners, LLC and Houlihan Lokey, Inc., with Paul Hastings LLP serving as legal counsel.
About Cortec Group
Founded in 1984, Cortec invests in high value-added, middle-market distribution, consumer, healthcare, and specialty products and services businesses in partnership with owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Additional information about Cortec can be found at www.cortecgroup.com.