CID Capital has acquired ProSource, a wholesale distributor of plumbing supplies.
ProSource provides plumbing supplies, luxury plumbing fixtures, lighting, and cabinet and door hardware to residential and commercial focused plumbers, builders, contractors, designers, and homeowners located in the Southeastern US.
The company operates five showroom locations in South Carolina and North Carolina and has an 86,000-square-foot warehouse and headquarters in Greenville, SC. ProSource was founded by Grover and Tonya Martin in 1996 and has approximately 100 employees (www.prosourcesupply.com).
ProSource’s operating metrics include 98% fill rates and 90%+ on-time delivery rates. The company has experienced double-digit annual growth rates for the last five years. “ProSource’s approach to customer service and their sophisticated technical support combined with a broad product mix, on-time delivery, and an excellent reputation made this an ideal investment for CID,” said Eric Bruun, a Managing Director at CID. “We are enthusiastic about our newly formed partnership with Grover and Tonya Martin and the entire ProSource team.”
“We are very excited to be partnering with the CID team,” said CEO Grover Martin. “Their strategic thinking and access to growth capital will allow us to invest further into the business and offer our customers even more comprehensive solutions at an even higher level of service.”
CID Capital makes majority investments in lower-middle-market companies that have revenues of at least $10 million and EBITDA of $3 million to $10 million. Sectors of interest consumer and industrial products. The firm is based in Indianapolis (www.cidcap.com).
The Capital Corporation (www.thecapitalcorp.com), an investment bank headquartered in Greenville, SC, was the financial advisor to ProSource.
First Merchants Bank provided the senior financing and Huntington Mezzanine Finance Group provided the subordinated debt financing for this transaction.
© 2018 Private Equity Professional | July 26, 2018