Latitude 27 Capital has acquired JK Findings, a provider of jewelry components. No financial terms were disclosed. In addition the acquisition, John Kaupp, founder and CEO of JK Findings, will retire as CEO but remain as an equity investor and board member in the newly formed JK Acquisition LLC.
SARASOTA, Fla.–(BUSINESS WIRE)–Latitude 27 Capital, LLC, a private investment firm that supports small and middle market companies, is pleased to announce that it has acquired the assets of JK Jewelry, Inc. ( dba “JK Findings”), a 45-year-old global designer, manufacturer and wholesaler of jewelry components, also known as findings. John Kaupp, the Founder and CEO of JK Findings, will retire as CEO and remain as an equity investor and Board member in the newly formed JK Acquisition, LLC.
Tim Tevens, Managing Director of Latitude 27 Capital, said “We see clear strategic growth paths in both product and market expansion that will fuel the future growth and success of JK Findings. Given the size and breadth of this niche market and our long-term expectations, we believe with this acquisition we will achieve out-sized returns for our investors.”
JK Findings was founded in 1975 as a wholesaler of jewelry findings, and is headquartered in Rochester, NY, with a sales office in Hong Kong. Given the poor quality and service from existing suppliers, Mr. Kaupp decided to insource the manufacturing process to better control supply chain quality and produce more innovative product offerings. Over its long history, Mr. Kaupp built JK Findings into an industry leading designer and manufacturer of high-quality jewelry findings, renowned for its excellent customer service. In addition, he developed a strong management team, including 20-year veteran, Joni Lucas. Ms. Lucas, who has held the combined positions of chief financial officer and chief operating officer of JK Findings for the last 14 years, will succeed Mr. Kaupp as chief executive officer.
“I am pleased to lead this company to its next phase of growth and work closely with our new owners, Latitude 27 Capital. Jim and Tim bring a wealth of knowledge to further advance the creativity, operational efficiencies and strong customer focus of our JK Findings team, and to drive the opportunity for even greater expansion. Given Jim and Tim’s leadership experience with larger and more global manufacturing companies, I believe they will help us achieve our long-term, global growth goals,” said Joni Lucas, CEO of JK Findings.
Jim Westman, Managing Director of Latitude27 Capital, added, “We are pleased to be partnering with Joni and her team at JK Findings to continue the excellent work that John Kaupp began many years ago. We are also excited that John has invested in the new company and that we will continue to benefit from his many years of industry experience through his service on our Board of Directors.”
Debt capital to fund the purchase of JK Findings was provided by TCF Capital Funding and Route 2 Capital Partners. “It was a pleasure to work with both TCF and Route 2 Capital Partners,” noted Jim Westman. “The principals in both of these organizations are industry veterans with long track records of success in financing middle market transactions.”
ABOUT LATITUDE 27 CAPITAL, LLC
Latitude 27 Capital, LLC was founded in 2018 in Sarasota, FL, to invest in or acquire dynamic, small and middle-market companies with particular interest in opportunities that allow us to partner with owners and management teams to improve operating performance, open new markets and increase shareholder value. We will leverage our extensive business background to aid these companies achieve above normal strategic revenue and profit growth, with consideration towards prudent use of capital. In general, we focus on manufacturing, value-added distribution and service companies that have meaningful barriers to entry, a strong improvement-oriented culture and excellent market position. Generally, we are looking for companies with EBITDA in the range of $2 million to $5 million and will consider management buyouts, ownership transitions and targeted growth financing. Our view is that of a long-term equity investor and strategic partner. Please see www.latitude27capital.com for more information.