Shorehill Adds to Belt Power

Belt Power, a portfolio company of Shorehill Capital, has acquired Regional Supply, a distributor of lightweight conveyor belts to a range of companies in the Eastern US.

Shorehill acquired Belt Power, a distributor and fabricator of lightweight conveyor system components, including conveyor belts, equipment, accessories and rubber, hose and gasket products, in September 2014 from Gen Cap America.

Regional Supply owners Paul and Tim Barrett will become equity owners in Belt Power. Steve Casagrande, General Manager of Regional Supply, will serve as an Executive Vice President of Belt Power and will lead Belt Power’s East Region sales team.

Regional Supply was founded in 1984 and is headquartered near Atlanta in Marietta, GA (www.regional-supply.com).

The buy of Regional Supply is the second add-on acquisition completed by Belt Power under Shorehill ownership. In August 2016, Belt Power acquired Sun Belt, Inc., a Lakeland, FL and Lenexa, KS-based distributor of lightweight conveyor belts to customers in the Midwest and Southeast.

Belt Power was founded in 1989 as a distributor of drum motors and later diversified its products to include conveyor systems components and began supplying the food processing industry. Today the company also serves the pulp and paper processing, distribution and warehouse centers, the automotive and tire industry, and general manufacturing sectors. Belt Power, led by CEO Rick McClure, has more than 1,300 customers and operates six stocking facilities in Atlanta, GA (headquarters); Charlotte, NC; Houston, TX; Grand Prairie, TX; Lakeland, FL; and Lenexa, KS (www.beltpower.com).

“Shorehill is eager to support Belt Power’s acquisition of Regional Supply and we believe this combination represents a critical step in Belt Power becoming the preeminent distributor in the lightweight belting market,” said Rob Hogan, a Managing Director at Shorehill.

Shorehill Capital makes control investments in North American-based middle market companies that have from $3 million to $15 million in EBITDA and enterprise values of $25 million to $150 million. Sectors of interest include engineered industrial products, industrial services, and value-added distribution. The firm was founded in 2013 by its managing partners Brian Simmons and Dave Hawkins, both former senior executives of CHS Capital.  Shorehill is based in Chicago (www.shorehillcapital.com).

NXT Capital, which provided a $17 million senior secured facility to fund Shorehill’s acquisition of Belt Power in 2014, provided additional senior debt to support the buy of Regional Supply.

© 2018 Private Equity Professional | March 8, 2018