Weinberg Capital Group has acquired Mechanical Servants LLC, which does business as Convenience Valet. Financial terms weren’t announced. The seller was David Baum, Convenience Valet’s president & CEO. Baum will remain a significant shareholder. Melrose Park, Illinois-based Mechanical Convenience Valet’s distributes blister pack (windowed) branded convenience / travel size health and beauty care products, over-the-counter drugs, personal care products and sundries sold in small-portion packages. KeyBank National Association provided senior financing while F.N.P. Capital Partners LP supplied mezzanine financing and an equity co-investment.
CLEVELAND, March 2, 2015 /PRNewswire/ — Weinberg Capital Group (“WCG”) announced today the acquisition of Melrose Park, Illinois based Mechanical Servants, LLC D/B/A Convenience Valet (“CV” or the “Company”). The Company was purchased by a group of investors led by WCG from David A. Baum, who will remain a significant shareholder of CV and continue in his current role as President & CEO.
Founded in 1946, CV is the originator and leading value-added distributor of blister pack (windowed) branded convenience / travel size health and beauty care products, over-the-counter drugs, personal care products and sundries sold in small-portion packages. The Company acquires branded products from the manufacturer and then repackages the products in convenient size (single / double dose) and trial / travel size packages for over 100,000 retail locations, which include grocery stores, convenience stores, drug stores, gas stations, mass merchants, warehouse clubs, travel centers, airports, hotels and cruise lines. The Company distributes over 500 branded products and has established an expansive distribution network, through which its partners’ products can efficiently reach consumers on a nationwide basis.
“We are very pleased to be partnering with David Baum and his talented team,” stated Ronald E. (Chip) Weinberg, Jr., Managing Director & Principal at WCG. “The Company has been owned by the Baum family for almost 70 years and we intend to continue their tradition of innovative product development, value-added design and planogramming and excellent customer service. We look forward to augmenting the in-place team with our operating experience and relationships to make CV an even more valuable partner to its customers and supplier partners.”
Commenting on the transaction, Mr. Baum stated, “We are pleased with our new affiliation with WCG and the role they will play in our growth plans. With their experience and resources we anticipate many years of success as we build upon the legacy my father established in 1946. Importantly, my entire senior team will remain with the Company as we look to enhance an already robust business.”
CV will remain headquartered in Melrose Park, Illinois, a suburb of Chicago. Senior financing for the transaction was provided by KeyBank National Association out of Cleveland, Ohio. Mezzanine financing and an equity co-investment were provided by Wexford, Pennsylvania based F.N.P. Capital Partners, L.P.
WCG is actively seeking add-on acquisitions for CV.
About Weinberg Capital Group
WCG is a Cleveland, Ohio based private equity group whose principals consist of Ronald E. Weinberg, Ronald E. (Chip) Weinberg, Jr.,John E. Herman and Cameron S. Miele. WCG invests in well-positioned middle market companies. WCG focuses on firms where the current ownership and management reinvest in the transaction, and management remains in place, affording current shareholders and management an opportunity to achieve liquidity coupled with ownership continuity. WCG invests in companies throughout North America with annual revenue from $15 to $100 million and EBITDA ranging from $2 to $10 million. The firm’s current portfolio covers a broad range of industries including manufacturing, business services, aviation services, financial services, consumer products, retail and value added distribution. Additional information on WCG can be found at www.weinbergcap.com.