Eureka Growth Capital has recapitalized Peabody, Massachusetts-based McCue Corp, a provider of damage prevention and asset protection solutions for the retail and material handling sectors. No financial terms were disclosed. The company’s founder David McCue will retain a “significant” equity stake and remain on the board of directors. M&T Bank provided debt financing to back the transaction.
PHILADELPHIA, PA, June 1, 2017 – Eureka Growth Capital (“Eureka”) today announced its partnership with management in the recapitalization of McCue Corporation (“McCue” or the “Company”), a leading global provider of damage prevention and asset protection solutions for the retail and material handling industries. Its founder, David McCue, will retain a significant equity interest in the Company and remain on the Board of Directors. Members of McCue’s senior management team also invested alongside Eureka in the recapitalization.
Headquartered in Peabody, MA, with regional offices in the U.K. and China, McCue maintains over 3,000 SKUs of highly engineered products that provide protection in interior retail spaces, backrooms, parking lots, and distribution and warehouse facilities. The Company’s products are based on innovative designs to minimize repair and replacement costs in retail and warehouse facilities and to create positive shopping experiences and safer environments for end users.
“We are excited to work with CEO David DiAntonio and the rest of the talented team at McCue to continue the impressive growth the Company has experienced over the last several years,” stated Jonathan Chou, a Partner with Eureka that joined McCue’s Board of Directors. “Since its founding in 1988, McCue has done an outstanding job establishing itself as the market leader in damage prevention products across various retail channels and has seen great receptivity for its offering in the rapidly growing material handling market.” Tassie Oswald, a Vice President with Eureka who also joined the Board, added, “McCue is well-positioned to capitalize on the increasing need for retailers to refresh existing stores and introduce new concepts as well as the rapid growth in distribution and warehouse facilities driven by e-commerce.”
“Our entire company is thrilled to begin working with the Eureka team,” said David DiAntonio, CEO of McCue. “Eureka’s experience supporting organic and inorganic growth initiatives will prove invaluable to McCue in capitalizing on its extensive opportunities for growth over the coming years. Eureka will have an immediate and positive impact on our near-term strategic plans. This is truly an exciting time.”
M&T Bank provided debt financing to support the acquisition.
Eureka also announced the additions of Dan Black and Colin Baker to the Eureka team.
Dan Black joined Eureka as an Associate and is responsible for evaluating new investment opportunities, due diligence and working with Eureka’s senior and subordinated debt lender relationships. Dan brings significant private equity experience, working previously as an Associate Vice President at Bessemer Securities and an Associate at Metalmark Capital, where he focused on buyout and growth investments in the business services, industrials, healthcare and energy industries. Dan also worked as an investment banking analyst in the mergers and acquisitions group at Greenhill & Company. Dan holds a BA in Economics from the University of Pennsylvania.
Colin Baker joined Eureka as an Analyst and is responsible for evaluating new investment opportunities and supporting Eureka’s deal teams in due diligence and financing processes. Prior to joining Eureka, Colin was an Analyst at Fifth Third Securities providing sector research, process execution and financial analysis to assist management teams and senior investment bankers throughout the M&A process. Colin received an MS in Management Studies from Duke University’s Fuqua School of Business and a BS in Economics from the Pennsylvania State University.
“We are very excited to continue to grow our investment staff with the additions of Dan and Colin to the Eureka team,” said Chris Hanssens, Managing Partner of Eureka. “We believe we have a strong team of investment professionals and are confident Dan and Colin will make meaningful contributions as we pursue new investment opportunities and work with our existing portfolio company management teams to drive growth and superior returns for our investors.”
About Eureka Growth Capital
Eureka Growth Capital is a private equity firm targeting niche market leaders with up to $75 million in revenue. Eureka focuses on partnering with proven managers to drive the growth of promising companies into outstanding enterprises. Eureka leads buyouts that bring significant ownership to the operators driving the success of the business and minority recapitalizations with flexible investment structures designed to uniquely meet the needs of the company, its management team and other shareholders. More information about Eureka Growth Capital can be found at www.eurekagrowth.com.