walk-in coolers

KPS Global, a portfolio company of D Cubed Group, has acquired Custom Cooler, a manufacturer of custom walk-in coolers and freezers.

Custom Cooler designs, manufactures and installs walk-in coolers, walk-in freezers and industrial cold storage applications. The company also supplies refrigeration equipment to meet the requirements of its walk-in coolers and freezer projects. Custom Cooler has approximately 150 employees and is led by CEO Steve Lee.

The company has 230,000 sq. ft. of manufacturing and warehousing capacity and is based in San Dimas, CA with an additional manufacturing facility in Conyers, GA (www.customcooler.com).

KPS Global is a manufacturer of walk-in coolers and freezers for supermarket and convenience stores along with insulated panel systems for industrial utility enclosures, refrigerated warehouses and scientific chambers. The company also stocks commonly-sized walk-in coolers and freezers available to ship in 48 hours.  KPS Global offers installation and general contracting services in addition to being a supplier of aftermarket parts and replacement equipment. KPS Global has approximately 650 employees and has 500,000 sq. ft. of manufacturing and warehousing facilities in Fort Worth, TX (headquarters); Phoenix, AZ and Piney Flats, TN (www.kpsglobal.com).

KPS Global was formed by D Cubed in December 2015 through the acquisition of Kysor Panel Systems from Manitowoc Company, and the Hill Phoenix Walk-ins Division from Dover Corporation. KPS Global’s acquisition of Custom Cooler creates a company with more than $250 million in total sales.

“This is a great next step in our growth,” said Mike Eakins, CEO of KPS Global. “With very little customer, dealer and rep overlap and a complementary geographic focus the decision was an easy one. Custom Cooler is well-known for the quality of its manufacturing, experience of its employees, and strong customer relationships. It also has expertise in industry sectors and geographies outside those we currently serve. The acquisition also gives Custom Cooler’s customers access to the full turnkey solution KPS Global offers, including installation services.”

“As an independent company operating in a dynamic market, we are fortunate to have an ownership group that understands what it takes to build a great business with a focus on the long-term,” added Mr. Eakins. “D Cubed brings an appreciation of the challenges and opportunities that come with change, as well as resources and capital to support strategic growth. They continue to be committed to our continuously improving the quality of our offering and to investing into innovation that will yield substantial improvements for our customers. This acquisition is another example of extending our capabilities.”

D Cubed Group makes equity investments in profitable, small and mid-size businesses operating in the consumer and business services industries, with a particular emphasis in multi-channel retail, restaurant and foodservice, franchising, and marketing, education and healthcare services sectors. The firm was founded by its Managing Director Glenn Kaufman and is headquartered in New York (www.dcubedgroup.com).

“From day one, our intention has been to create a truly great company that is not only a market leader but differentiates itself on the strength of the overall offering, its ability to meet the increasingly sophisticated needs of its customers and critically, in driving innovation,” said Mr. Kaufman. “KPS Global has come far in streamlining its operations and in developing and introducing new products to the market – the pace of which will only accelerate moving forward. This acquisition will bring additional expertise and open additional markets. Our vision for KPS Global and what it can accomplish is a long-term one.”

Custom Cooler will continue to operate from its San Dimas, CA and Conyers, GA facilities and Mr. Lee will remain with the company and report to Mike Eakins.

© 2018 Private Equity Professional | November 19, 2018

Arctic Industries, a walk-in cooler and freezer manufacturer owned by Stoic Holdings, has acquired Duracold Refrigeration Manufacturing Company.

Duracold is a manufacturer of walk-in coolers and freezers. The company was founded in 1998 and is based near Los Angeles in Monrovia, CA (www.duracold.com).

Arctic Industries is a manufacturer of walk-in coolers used by restaurants, convenience stores, food distributors, country clubs, resorts, casinos, schools, hotels and the military. The company, led by its President David Grife, was founded in 1981 and is headquartered in Miami (www.arcticwalkins.com).

“Since its founding in 1998, Duracold has earned its reputation for superior product performance, a strong customer value proposition, and exceptional customer service by producing an outstanding product that cost-effectively serves its customers’ refrigeration needs,” said Mr. Grife. “We are excited to join forces with Duracold and take the combined company to the next level.”

The buy of Duracold by Arctic will immediately expand the company’s geographic reach to the western US. “By combining Arctic and Duracold, we are building a premier nationwide manufacturer of walk-in coolers and freezers,” said Ryan Berk, a Partner at Stoic Holdings. “We will continue to invest in new capabilities and talent at Arctic to better serve our growing base of customers.”

Stoic Holdings invests in North America-based companies that have from $1 million to $10 million of EBITDA. Sectors of interest include manufacturing and industrials; HVAC and cold storage products; niche distribution and logistics; business services; testing and inspection; agribusiness; environmental services; aerospace and defense; and healthcare services. Stoic was founded in 2014 by Ryan Berk and Michael Dworkis and is headquartered in Denver (www.stoicholdings.com).

Harold Monsher, the President of Duracold, will remain with the business post-closing to ensure a successful transition of the business to Arctic. “I founded Duracold to be the leader in foam-in-place manufacturing on the west coast,” said Mr. Monsher. “After many years of success, I am excited about Arctic’s ability to continue adding value to Duracold’s customers and employees.”

© 2018 Private Equity Professional | September 7, 2018