O2 Investment Partners, Oakland Standard Co. and Tecum Capital Partners have made an undisclosed investment in Clio Holdings LLC. Clio is a consolidator of countertop supply and fabrication businesses.
BLOOMFIELD HILLS, MI–(Marketwired – October 11, 2016) – O2 Investment Partners, LLC (“O2”) (www.o2investment.com) and Oakland Standard Co., LLC (“Oakland Standard”) (www.oaklandstandard.com/) announce the formation of Clio Holdings, LLC (“Clio”) to serve as a consolidator of local and regional countertop supply and fabrication businesses. O2 and Oakland Standard were joined by Tecum Capital Partners, LLC (“Tecum Capital”) that provided mezzanine debt and an equity co-investment to support Clio.
Clio was formed to partner leading regional countertop suppliers and fabricators together, providing the capital and operational expertise to upgrade, differentiate and professionalize this highly fragmented industry. Clio has successfully completed two acquisitions and is actively seeking new opportunities in major metro areas across the United States.
On September 30, 2016, Clio acquired Granite Source (www.granitesource.net/). Founded by Nicholas Draper in 1999, Granite Source is a “best-in-class” stone countertop fabrication and installation business primarily serving metropolitan Washington D.C., Virginia and Maryland. Granite Source is the second acquisition in the Clio platform, following the acquisition of Princess Marble Company (“Princess Marble”) (www.princessmarble.com/) in June 2016. Princess Marble, founded by Bill Jenkins in 1998, is a leading fabricator and installer of natural and manufactured stone products primarily serving metropolitan Minneapolis-Saint Paul. Both Mr. Draper and Mr. Jenkins have expressed their enthusiasm to join the Clio platform, reinvested in the combined business and are actively engaged the next phase of their company’s growth and success.
Bryan Tolles, partner of Oakland Standard, commented, “O2 and Tecum Capital have been valuable partners throughout the closing process and we are excited to combine the skillsets of our partnership to grow the Clio platform together. Bill Jenkins and Nicholas Draper have each built extraordinary businesses, and we look forward to the future success of Clio through organic growth as well as additional acquisitions.”
Todd Fink, Managing Partner of O2, also commented, “We have been extremely impressed by Oakland Standard’s exhaustive market diligence and well-developed strategy. We are excited to partner with them not only for this investment, but also in future acquisitions as we grow the Clio platform together. I want to thank Tecum Capital for their insights and flexibility in providing the financing for the transaction.”
About O2 Investment Partners:
O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire a majority interest in lower middle market manufacturing, niche distribution, and select service and technology businesses. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value.
O2 invests equity on behalf of its principals as well as a core network of other limited partners and strategic investors. The firm invests with a view toward partnering with management to build and grow the business and take it to its next stage of development. This requires not only a clear vision and strategic plan to create shareholder value, but a close partnership and alignment of interest with management.
About Oakland Standard Co.:
Dan Bickersteth and Bryan Tolles founded Oakland Standard to focus on investment opportunities in lower middle market companies that want more than just capital. Oakland Standard targets situations where an operational approach and strategic support create value by building strong companies over a long-term horizon.
Oakland Standard’s goal is to work with current owners and management teams to build long-lasting businesses that are leaders in their industry based on the belief that substantial long-term value appreciation can be created with the right combination of capital and strategic resources.
Oakland Standard’s core focus is on industrial businesses with less than $10 million of cash flow that are often overlooked or underappreciated by larger investors and where a hands-on approach can lead to meaningful change.