Cleveland-based MCM Capital Partners announced that it has exited its investment in ESSCO Inc. ESSCO, a distributor of floor care products, was bought by MCM Capital Partners II in 2005. MCM sold the business to Indianapolis-based Cardinal Equity Partners. Terms of the deal were not released.
MCM Capital Partners II (“MCM”), a Cleveland, Ohio-based MicroCap LBO fund is pleased to announce the sale of ESSCO, Inc. Acquired by MCM Capital Partners II in 2005, the Company has evolved into the nation’s leading distributor of floor care products to independent dealers, specialty floor care internet retailers, and discount retailers. MCM sold the business to Cardinal Equity Partners, another leading private investment firm located in Indianapolis, IN.
ESSCO, based in Twinsburg, Ohio, was founded in 1924 and distributes over 12,000 SKUs including floor care cleaning equipment and consumable parts from Hoover, Kirby, Electrolux, Bissell, Pro-Team, Oreck and Panasonic amongst others. ESSCO’s unique nationwide distribution network allows the Company to provide time sensitive floor care retailers with the best in class lead times and the broadest product selection in the industry. In addition, ESSCO also provides drop ship services for specialty floor care internet retailers and internet order fulfillment services for mass merchant retailers.
MCM and its management team, led by CEO Tom Bianco, invested significant resources into the Company to develop a foreign sourcing program with proprietary products, complete a highly accretive acquisition in the Northeast, build a state-of-the-art primary distribution center, license a nationally-recognized consumer brand and implement a number of new marketing initiatives.
ESSCO CEO Tom Bianco said, “MCM has been an ideal partner over the years in terms of providing strategic guidance, sourcing and negotiating a highly accretive acquisition and supporting the management team’s efforts in more than doubling the size of the Company under its ownership.”
Steve Ross, MCM Managing Director & Partner, added “we acquired a wonderful business in 2005 through a recapitalization with its existing owners, Bob and Bunnie Merckle. During our ownership, we were fortunate to have Bob remain a shareholder and value added board member. Tom Bianco has done a fine job of adding talent to the management team who, collectively, spearheaded the growth initiatives during MCM’s ownership.”
“The Company is clearly the leader in the markets it serves, has an excellent management team and is extremely well-positioned to capitalize on numerous growth prospects,” said Jay Poffenberger, MCM Capital Managing Director & Partner. He added, “we are continuing to realize liquidity events for MCM Capital Partners vintage 2005 fund and felt ESSCO was well positioned to provide a very attractive return to our Limited Partners.”
MCM Capital Partners focuses on partnering with strong management teams in acquiring niche manufacturers, value added distributors and specialty service companies generating up to $75 million in annual revenue.