Regent Square Capital and Galtney Partners and have acquired Generator Source, formerly known as Diesel Service and Supply.
Generator Source sells and services new and used commercial standby generators including those made by Caterpillar, Cummins, Kohler, and Generac. The company specializes in late model, low-hour standby generators, ranging from 20 kilowatts to 4 megawatts.
Generator Source sells its products globally and its generator technicians provide in-house and on-call maintenance and repair throughout Colorado and Southern Wyoming. Generator Source was founded in 1981 by Ed Vecchiarelli, Sr. and is headquartered northeast of Denver in Brighton, Colorado.
Galtney and Regent Square acquired the company from Mr. Vecchiarelli as part of a business succession plan and growth strategy for the company. Mr. Vecchiarelli will continue to serve as a senior advisor to the company while Eddie Vecchiarelli, Jr. continues in his role as chief executive officer.
“We are excited to partner with Galtney and Regent Square. They share Generator Source’s long-term vision to expand its geographic footprint and existing sales channels while maintaining its focus on customer satisfaction and retention. We are confident that the new partnership can build on Generator Source’s legacy and allow Generator Source to realize its next stage of growth,” said Eddie Vecchiarelli.
“Generator Source is a respected leader in a fast-growing, highly fragmented industry and we are excited to be a part of the next chapter of the company’s success,” said Rob Galtney, president of Galtney Partners. “The new partnership will combine their exceptional industry expertise with added resources that will further strengthen and expand Generator Source’s position in the sector and will allow the company to achieve rapid growth and value creation.”
Houston-based Galtney Partners makes control or other value-add investments in middle-market companies, especially family or founder-owned businesses.
“As a veteran-owned private equity sponsor, Regent Square is keenly interested in building teams that share our values and that are dedicated to achieving principled, sustainable growth,” said Kyle Brengel, a partner at Regent Square who now serves as COO of Generator Source. “This partnership between Galtney, Regent Square and Generator Source brings together highly compatible leadership to execute a compelling investment thesis that will be transformative in the aftermarket commercial generator industry.”
Pittsburgh-based Regent Square makes investments in middle-market and lower-middle-market businesses that are owned and operated by their founders and have annual revenues greater than $5 million and gross margins greater than 20 percent.
© 2020 Private Equity Professional | January 28, 2020
