Weinberg Capital Group has acquired Mechanical Servants (DBA Convenience Valet) from its owner, President, and CEO David Baum. Mr. Baum will remain a significant shareholder of the company and continue in his current role.
Convenience Valet is a value-added distributor of blister pack branded convenience and travel-sized health and beauty care products, over-the-counter drugs, personal care products and other sundries sold in small-portion packages. The company acquires branded products from manufacturers and then repackages the products in convenient sizes (for instance, single or double dose) and trial and travel-size packages. Products are sold at more than 100,000 retail locations and include grocery stores, convenience stores, drug stores, gas stations, mass merchants, warehouse clubs, travel centers, airports, hotels and cruise lines. The company was founded by the Baum family in 1946 and is headquartered in the Chicago suburb of Melrose Park (www.cvalet.com).
“We are very pleased to be partnering with David Baum and his talented team,” said Ronald (Chip) Weinberg, Jr., Managing Director & Principal at Weinberg Capital Group. “The company has been owned by the Baum family for almost 70 years and we intend to continue their tradition of innovative product development, value-added design, planogramming and excellent customer service. We look forward to augmenting the in-place team with our operating experience and relationships to make CV an even more valuable partner to its customers and supplier partners.”
Weinberg Capital Group specializes in acquiring middle-market companies that are based in North America and have annual revenues from $15 million to $100 million and EBITDAs ranging from $2 million to $10 million. Sectors of interest include manufacturing, business services, medical and healthcare, aviation services, consumer products, and value-added distribution. Weinberg Capital Group is based in Cleveland (www.weinbergcap.com).
“We are pleased with our new affiliation with Weinberg Capital Group and the role they will play in our growth plans,” said Mr. Baum. “With their experience and resources we anticipate many years of success as we build upon the legacy my father established in 1946. Importantly, my entire senior team will remain with the company as we look to enhance an already robust business.”
Weinberg Capital Group is actively seeking add-on acquisitions for Convenience Valet.
Senior financing for the transaction was provided by KeyBank. Mezzanine financing and an equity co-investment were provided by F.N.P. Capital Partners.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-3-15
