Prospect Partners has completed the sale of its portfolio company, Pipp Mobile Storage Systems, to Canadian private equity firm Novacap and management.
Pipp Mobile Storage Systems is a supplier of mobile storage products to retailers and has a growing presence in the hospitality, foodservice and commercial office markets. Its product line includes lateral and electrical storage systems, inventory management systems, and shelving and storage accessories. The company is based in Walker, MI (www.pippmobile.com).
Prospect partnered with industry veteran Craig Umans and management to acquire Pipp from its founding family in 2005, and Mr. Umans became CEO. Since that time, Pipp has strengthened its position in the retail segment and entered new distribution channels through two add-on acquisitions. Mr. Umans will continue to be a significant investor in Pipp and CEO of the company.
“Pipp is a strong performer with a tremendous national reputation and growth potential as it becomes an even larger player in the mobile storage solutions market,” said Erik Maurer, a Principal at Prospect Partners. “Craig Umans typifies the type of outside executive with whom we seek to partner. He is an experienced veteran in a well-defined niche market who clearly articulated his vision for how to dramatically grow Pipp. Our partnership has been fulfilling on every level as together we built an outstanding company around Craig’s plan. The results were excellent for all of Pipp’s stakeholders.”
Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues typically between $10 million and $75 million. Since 1998, Prospect Partners has invested nationwide in more than 86 companies in a range of niche manufacturing, distribution, and specialty service markets. The firm has $470 million of capital under management and is based in Chicago (www.prospect-partners.com).
“Prospect Partners has been an excellent partner to Pipp since day one. Their guidance, cooperation, and enthusiastic support helped provide the opportunity to execute the strong growth that Pipp has achieved. I am very excited about our future prospects with Novacap,” said Mr. Umans.
Harris Williams and Co. acted as exclusive financial advisor to Pipp in the sale transaction. The transaction was led by Patrick McNulty, John Neuner, David Kennedy and Chip Duggins from the firm’s Richmond office. “We are excited to help Pipp find a partner that shares its vision and strategy for future growth opportunities. Pipp’s management team has done an excellent job building a unique niche within the retail services industry. Customization is a growing trend within manufacturing and Pipp’s leading end-to-end services and support continue to capitalize on that trend while positioning Pipp as a market leader going forward,” said Patrick McNulty, a managing director at Harris Williams & Co.
“With consumer confidence at its highest level in more than four and a half years, businesses such as Pipp that serve the retail industry with efficient and economical solutions are poised to benefit. Novacap is an experienced investor within the consumer industry. We expect the partnership to help drive future growth for the company,” said John Neuner, a managing director at Harris Williams & Co.
Novacap, with $750 million in assets under management, invests in middle market companies within traditional industries and in companies in the information and communication technologies sector. The firm was founded in 1981 and is based in Quebec (www.novacap.ca).
© 2012 PEPD • Private Equity’s Leading News Magazine • 12-11-12