Blackford Capital has made an investment in Online Tech Stores (OTS), a wholesale distributor of aftermarket imaging supplies and accessories.
Online Tech Stores (DBA Supplies Wholesalers) sells laser printer toner cartridges, ink cartridges, toner, copier toner, ribbons, thermal fax consumables, and other products and peripherals. OTS is the largest importer of toner products in the United States and its product portfolio totals more than 3,000 SKUs.
The Reno, NV-headquartered company was founded in 2009 by CEO Bob Willmes and has more than 100 employees with distribution facilities in Pennsylvania, Tennessee, Texas and Nevada (www.supplieswholesalers.com).
“OTS has achieved remarkable growth since its founding,” said Martin Stein, founder and managing director of Blackford Capital. “The company is known throughout the industry for its quality products and superior customer service. We see opportunities to leverage these strengths and continue to grow the business. By partnering with CEO Bob Willmes—a seasoned, industry veteran who has made three previous successful business exits—and the experienced management team at OTS, we are confident that we can build upon OTS’s legacy as a leader in the aftermarket imaging supplies market.”
Blackford Capital has experience in the imaging supplies industry, having previously invested in Quality Imaging Products, an Irvine, CA-based provider of remanufactured printer cartridges that was sold in 2005; and Rhinotek, a Carson, CA-based retail distributor of inkjet and toner cartridges, that was sold in 2006. In addition, Mr. Stein was named one of the five Most Influential Industry Leaders by “Recharger Magazine” in 2002 and 2003 and he also served as treasurer of the International Imaging Technology Council from 2003 to 2006.
“Blackford brings a tremendous amount of industry experience to the table, in addition to their strategic, financial, and operational experience,” said Mr. Willmes. “We’re thrilled to be partnering with Blackford and their talented team as we look to continue to expand OTS. While we’ve seen significant growth in the past several years, we believe this partnership will enable OTS to add products and capabilities to continue to best meet the needs of our growing customer base.”
Blackford Capital invests in middle-market manufacturing, distribution, and service companies in both mature and growing industries. Target companies will have revenues of $20 million to $100 million and EBITDAs of $2 million to $20 million. With the buy of OTS, Blackford now has 12 portfolio companies located across the United States. The firm is headquartered in Grand Rapids, MI (www.blackfordcapital.com).
Corporate Finance Associates was the financial advisor to Online Tech Stores.
Debt financing for this transaction was provided by Fifth Third Bank, Union Bank, Zions Bank, and OFS Capital Corporation.
© 2018 Private Equity Professional | February 13, 2018
