Genstar’s Marcone Continues HVAC Build

Genstar’s Marcone Continues HVAC Build

Genstar acquired Marcone Appliance Parts from Sterling Investment Partners in June 2021

Kansas City-based Wholesale Sheet Metal is a manufacturer and supplier of sheet metal products used in heating, ventilating, and air conditioning applications

SOURCE: Wholesale Sheet Metal

Munch’s Supply, the HVAC division of Marcone, a portfolio company of Genstar, has acquired sister companies Wholesale Sheet Metal and Pile Protection Tops.

Marcone is a distributor of home appliance, HVAC and plumbing repair parts and equipment. The company is an authorized distributor for numerous major brands including Whirlpool, Electrolux, General Electric, Maytag, Bosch, Samsung, and L-G.

According to Marcone, it maintains the largest inventory of original replacement parts in the country for household appliances such as refrigerators, ranges, dishwashers, microwaves, washers, and dryers.

Source: Marcone

St. Louis-headquartered Marcone, led by CEO Jim Souers, operates 122 facilities and has more than 2,100 employees.

Genstar acquired Marcone (then Marcone Appliance Parts) from Sterling Investment Partners in June 2021. In December 2021, Genstar added on to the company with the buy of Munch’s from Ridgemont Equity Partners with Ridgemont maintaining a minority equity interest in the combined business. Ridgemont acquired Munch’s in April 2019 from Rotunda Capital Partners which, in turn, had acquired the company in March 2015 in partnership with third-generation members of the Munch family.

Munch’s distributes heating and cooling supplies to dealers and contractors and has more than 10,000 SKUs from more than 100 HVAC equipment, parts and supplies manufacturers, including American Standard, Trane, Mitsubishi, Rheem, IPEX, AO Smith, Kohler, Tempstar, Keeprite and Frigidaire. Munch’s was founded in 1956 by Willard Munch and is led today by Chief Business Development Officer Bob Munch (the founder’s grandson). The company is headquartered just west of Chicago in Hillside, Illinois.

Kansas City-based Wholesale Sheet Metal (WSM) is a manufacturer and supplier of sheet metal products used in heating, ventilating, and air conditioning applications. Pile Protection Tops (PPT), which co-locates with WSM, is a maker of pile finishing products (also known in the industry as “cans,” “sleeves” or “tins”) used in foundation applications in the construction industry. PPT is also a distributor of several brands of foundation spacers and cage wheels, caps, and corks. Both WSW and PPT were owned by Patrick Chilen.

Source: Wholesale Sheet Metal

These add-on acquisitions expand Munch’s geographic footprint to 71 locations serving 17 states and 1 Canadian province.

“The WSM/PPT acquisition will provide fantastic support in the sheet metal category to our O’Connor Company business unit, a Trane and American Standard HVAC distributor that has been part of the Kansas City market for more than 100 years,” said Mr. Munch.

Genstar is an active investor in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDA greater than $15 million. Sectors of specific interest include financial services, software, industrial, and healthcare industries.

In April 2021, Genstar held a hard cap close of Genstar Capital Partners X LP with $10.2 billion in capital commitments. San Francisco-headquartered Genstar was founded in 1988 and is led by managing partners Ryan Clark (President), Jean-Pierre Conte (Chairman), Rob Rutledge, Tony Salewski, and Eli Weiss.

© 2022 Private Equity Professional | July 22, 2022

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