Industrial Opportunity Partners (IOP) has formed SRR Holdings to acquire SignResource and to own the equity interests of Royston, an existing portfolio company. SignResource and Royston will collaborate but remain independently operated businesses under SRR Holdings.
SignResource is a designer and manufacturer of exterior and interior signage for retail fuel/convenience store chains, retail and hospitality, and quick-serve restaurants. The company also provides its customers with installation and maintenance services. SignResource manufactures its products in two facilities near Los Angeles in Maywood, CA (headquarters) and Bell Gardens, CA. The company, led by CEO Scott Van Ness, also has a project management and customer service center in Knoxville, TN (www.signresource.com).
“The SignResource management team is looking forward to our partnership with IOP and with Royston,” said Mr. Van Ness. “We believe that together with Royston, and with IOP’s operations‐focused approach, we will be in a great position to continue to grow and serve our customers.”
IOP acquired Royston, a designer, manufacturer and installer of check out and merchandising fixtures and equipment, from Stephens Capital Partners in March 2018. The company’s products are used by convenience stores, grocery stores and other mass merchandisers and include checkout stands, customer service centers, prep and beverage counters, modular shelving systems, coffee and beverage islands, beverage tower systems, counters, kiosks, and fuel-island valets.
Additionally, through its field operations business, Royston provides customers with project management, site inspection and surveys, and installation services for program rollouts and store remodels. The company, led by CEO Mark Kenline, is headquartered in Jasper, GA (60 miles north of Atlanta) with two additional manufacturing facilities in Royston and Atlanta, GA (www.roystonllc.com).
Jim Todd, an IOP Operating Principal, has assumed the position of Chairman of SRR Holdings, overseeing both SignResource and Royston. “We are excited to partner with Scott and the rest of the SignResource team,” said Mr. Todd. “We are also excited about the prospects of each of SignResource and Royston, and together we believe they will be able to offer customers a much broader product line with enhanced capabilities.”
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $400 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP is headquartered in the Chicago suburb of Evanston (www.iopfund.com).
SRR Holdings is the second platform investment for IOP’s third fund, Industrial Opportunity Partners III LP, which closed in July 2017 at its hard cap of $450 million.
Debt financing for the buy of SignResource was provided by an expansion of Royston’s existing capital structure with a bank group led by Comerica Bank and with subordinated debt financing provided by Norwest Mezzanine Partners.
© 2018 Private Equity Professional | July 31, 2018
