New State Capital Partners has made a “significant” investment in Wichita, Kansas-based KMS LLC, a wholesale distributor of closeout, overstock and factory refurbished merchandise. No financial terms were disclosed.
LARCHMONT, N.Y., Dec. 2, 2020 /PRNewswire/ — New State Capital Partners (“New State”) today announced that it has made a significant equity investment in KMS, LLC (“KMS” or “the Company”), one of the nation’s largest wholesalers of consumer product closeouts and special buys alongside its own line of KMS-sourced products. Core members of the management team will remain with the Company and have retained a substantial minority stake in the business. Terms of the transaction were not disclosed.
“We are excited to announce our partnership with KMS,” said Kurt Lentz, Principal at New State. “Consumers are increasingly hunting for bargains within the off-price retail channel, and we see those habits firming and accelerating regardless of underlying economic factors. KMS can build on its broad array of longstanding relationships in product sourcing and wholesale channel delivery, and we also see great potential for growth within the Company’s direct-to-consumer business. We look forward to working with the KMS team to support the next phase of the Company’s success.”
KMS (www.kmscloseouts.com) is a leading wholesale distributor of closeout, overstock, and factory refurbished merchandise, including clothing, hardware, housewares, small appliances, and more. Founded in 1976 and based in Wichita, KS, the Company sources off-price inventory each year from a broad set of manufacturers and brands across all major consumer product categories. KMS distributes products via both leased and third-party operated distribution centers throughout the U.S.
Tom George, President and CEO of KMS, commented, “New State will be an invaluable partner as we seek to expand on what we do well. We plan to leverage New State’s resources to help KMS build out our logistics, sales and purchasing teams and capabilities, and to invest in technology that will enhance our market-leading competitive position.”
Dustin Awe, Vice President of Purchasing and Sales at KMS, noted, “We look forward to working with New State to implement systems and processes that will enhance our ability to be flexible, spot trends, and make decisions that will give us a first-mover advantage in the market.” Scott Miller, Vice President of Purchasing and Sales, added, “We are delighted to join the New State portfolio and expect to thrive with our new partners.”
About New State Capital Partners
New State Capital Partners LLC is an entrepreneurial-minded private equity firm that strives to be nimble, decisive and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders, independent sponsors, and others. New State seeks to invest in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, industrials, and consumer. New State can commit more than $50 million of equity capital per transaction, using a variety of investment structures, through New State Capital Partners II, LP. New State and its affiliates have invested in 25 companies to date. For more information visit www.newstatecp.com.