Cortec Sells Barcodes to Odyssey

Cortec Group has sold BC Group Holdings to Odyssey Investment Partners. Cortec formed BC Group Holdings in November 2012 to acquire Barcodes, a distributor of automatic identification capture products.

Today, Barcodes is a distributor of automatic identification and data capture (AIDC) products and services such as barcode scanners, mobile computers, label printers, point-of-sale systems, and related consumable products, software, and integration services.

The company also distributes identification card and access control (ID) products and systems. Customers of Barcodes include small and medium-sized businesses and some Fortune 500 customers throughout the US, Canada, and UK. Barcodes is led by CEO Daniel Nettesheim and is headquartered in Chicago ( The Barcodes management team, including Mr. Nettesheim, has invested in the transaction and will continue to lead the company under Odyssey’s ownership.

During Cortec’s ownership term the company meaningfully expanded its product and service offerings, customer base, and geographic presence, becoming a leader, according to Cortec, in the AIDC and ID card markets in North America and the UK. “Our investment in the business over the last six years to expand Barcodes’ leadership team, build the sales organization, enhance its eCommerce capabilities, improve systems, and complete several strategic acquisitions has enabled management to significantly grow the company’s revenue and earnings,” said David Schnadig, a managing partner at Cortec.

“Cortec has been there for us every step of the way over the past six years,” said Mr. Nettesheim. “Their understanding of our business and commitment to investing in our long-term success has proven invaluable as we have built Barcodes both organically and through acquisition and created a strong platform for future growth.”

“We are very pleased with the outcome for Barcodes’ shareholders and believe that Odyssey will be a terrific partner for the management team going forward,” said Michael Najjar, a managing partner at Cortec.

In addition to Mr. Schnadig and Mr. Najjar, other members of the Cortec team involved in this transaction included Managing Director Bill Tucker and Senior Associate Jacob Grossetti. Cortec invests in companies with revenues of $40 million to $300 million and EBITDA of $7 million to $35 million. Sectors of interest include healthcare products and services, B2C and B2B products, value-added distribution and specialty services. The firm was founded in 1984 and is based in New York (

Odyssey makes control investments in middle-market companies that have from $20 million to $100 million of EBITDA. Sectors of interest include industrial and business services. The firm has offices in New York and west of Los Angeles in Woodland Hills, CA (

“We are excited to acquire Barcodes in partnership with the company’s management team,” said Craig Staub, a managing principal of Odyssey. “Barcodes has established a leading market position and comprehensive product and service offerings, in a dynamic and growing industry.  We look forward to collaborating with Dan Nettesheim and his team to capitalize on the business’ many attractive and diverse opportunities to build value for all of its stakeholders.”

BlackArch Partners ( and Houlihan Lokey ( were the financial advisors to Barcodes.

© 2019 Private Equity Professional | January 23, 2019

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