Svoboda Capital Partners has sold its portfolio company, Cape Electrical Supply, to Graybar.
Cape Electrical Supply is a regional distributor of electrical and communications products to electrical contractors and large engineering construction firms, as well as industrial, institutional and utility customers. Cape Electrical operates a network of 17 stocking locations in Missouri, Illinois, Kentucky, Tennessee, Texas and Arkansas. The company had revenue of approximately $126 million in 2015. Cape Electrical is led by Kyle Thoma, its president and CEO, and is headquartered in Cape Girardeau, MO (www.capeelectric.com).
Svoboda acquired Cape Electrical in November 2007 and completed six add-on acquisitions during the course of its ownership. As a subsidiary of Graybar, the company will continue to operate under the Cape Electrical Supply name with the same employees, senior management team and suppliers.
Graybar is a wholesale distributor of electrical, communications and data networking products. The company has annual revenues of approximately $6 billion and is employee owned – one of the largest employee-owned companies in North America. Graybar is headquartered west of St. Louis in Clayton, MO (www.graybar.com).
“We are excited to welcome the Cape Electric team to Graybar and look forward to achieving profitable growth together. This marks the second acquisition for Graybar in as many years, and we will continue to seek out similar opportunities to expand our reach and diversify our business in the future,” said Kathleen Mazzarella, Graybar’s Chairman, President and CEO.
Svoboda Capital Partners invests from $10 million to $20 million in business services, value-added distribution, and consumer products companies that have revenues from $10 million to $100 million and EBITDAs from $3 million to $15 million. The firm was founded in 1998 and has over $300 million of capital under management. Svoboda Capital is based in Chicago (www.svoco.com).
BB&T Capital Markets (www.bbtcapitalmarkets.com) was the financial advisor to Cape Electric. BB&T is based in Winston-Salem, NC.
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