Salt Creek Capital has acquired Network Distributors, a supplier and distributor of communications networking components, in partnership with investor and new CEO Rick Pearson.
Network Distributors sources, configures and sells third-party optical transceivers (optical transceivers convert and process electrical signals into an optical signals) that are used in internet switches, routers, and networking systems. The company also sells memory and fiber optics parts that are used as after-market replacements and upgrades for over 20 brands and 80 different platforms of networking equipment. Network Distributors is based in San Jose, CA (www.networkdistributors.com).
“I am excited to partner with Salt Creek Capital on this acquisition,” said Mr. Pearson. “They have a great track record of working closely with new management teams and financial partners to structure deals for long-term success. Network Distributors offers a strong value proposition in providing overnight delivery of leading-edge optical transceiver networking components that are tested and ensured to work out of the box. I look forward to working with the Network Distributors’ team to continue providing great service and value to our loyal customers.”
Network Distributors was founded in 1999 by Jason Colyar who is maintaining an ownership position in the company and will continue to serve on the board of directors. “We are thrilled to partner with Jason Colyar and the team at Network Distributors on this acquisition,” said Daniel Price, a Vice President at Salt Creek Capital. “We are eager to continue working with Rick, who first joined Salt Creek as an Executive Partner back in 2016, to position the company for future growth. Rick brings unique talent and experience to the organization that we believe will help propel the business to the next level.”
Salt Creek invests in executive-led buyouts of companies with up to $100 million in revenue and EBITDA from $750,000 to $5 million. Sectors of interest are varied making the firm nearly industry agnostic but areas of specific interest include manufacturing, business and consumer services, distribution, and franchisors. The firm is based in Menlo Park (www.saltcreekcap.com).
TCF Capital Funding, a division of TCF National Bank, provided $5.5 million in secured financing to support Salt Creek’s acquisition of Network Distributors. TCF Senior Vice President Kevin Nowak led the transaction. Aldine Capital Partners (www.aldinecapital.com) also contributed mezzanine financing and equity to the transaction.
© 2017 Private Equity Professional | September 13, 2017
