Southfield Capital has completed the sale of RCR International (RCR) to Peak Rock Capital. RCR is a manufacturer, marketer and value-added distributor of home insulation, flooring and utility products sold through the do-it-yourself channel in Canada and the US.
RCR’s more than 2,000 products are used by consumers to maintain and enhance the comfort and energy-efficiency of their homes, and are primarily featured by retailers in the home improvement and do-it-yourself categories. The company’s core product portfolio of door and window insulation, indoor/outdoor flooring and utility accessories, includes Climaloc, the top selling Canadian brand of consumer weatherstripping, Comfort Plus, Dennis, Polar Grip and Topsi. The company was founded in 1946 and is headquartered in Boucherville, Québec (www.rcrint.com).
Southfield Capital acquired a majority stake in RCR in April 2006. Under Southfield’s ownership, RCR built on its market leading position and significantly enhanced shareholder value. This value creation was accomplished through several key operational improvements, including (i) increasing focus on working capital management (ii) diversifying product offering to augment RCR’s core insulation product lines (iii) recruiting additional senior management talent (iv) institutionalizing key business practices and processes, and (v) divesting non-core business units.
Southfield Capital provides capital for majority recapitalizations and management-led buyouts of lower middle-market businesses. The firm makes control investments in North American companies generating $5 million to $15 million in EBITDA. In addition, the firm just recently began managing a Small Business Investment Company (“SBIC”) mezzanine fund, which targets similar types of companies as the private equity fund. Southfield Capital is based in Greenwich, CT (www.southfieldcapital.com).
Peak Rock Capital makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin (www.peakrockcapital.com).
Lincoln International acted as exclusive financial advisor to RCR and Fasken Martineau acted as legal advisor to RCR.
2014 PEPD • Private Equity’s Leading News Magazine • 6-24-14