Combination Positions Marcone as an Integrated Hub for Residential Parts and Services

ST. LOUIS, Jan. 11, 2022 /PRNewswire/—Marcone, a leading distributor of home appliance, HVAC, and plumbing repair parts and equipment across North America and current portfolio company of Genstar Capital, today announced that it has acquired Munch’s Supply (“Munch’s”), a leading distributor of HVAC equipment, parts and supplies from Ridgemont Equity Partners. The acquisition immediately establishes Marcone as a leader in the HVAC sector and, combined with its recent acquisition of plumbing distributor Professional Plumbing Group (“PPG”), dramatically expands its services to the home. Ridgemont and the Munch’s management team will retain a meaningful minority stake in the combined entity.

Founded in 1956, Munch’s Supply is a leading supplier of HVAC and plumbing replacement parts and equipment. Headquartered in Hillside, IL, Munch’s sells approximately 135,00 SKUs across 65 facilities with a workforce of approximately 1,100 employees. With the addition of Munch’s, Marcone now operates in three large, growing markets within the home (appliances, HVAC and plumbing) servicing millions of homes, 43,000 technicians and larger strategic customers such as property managers, retailers, home warranty and ecommerce providers with tens of millions of parts sold annually across its 113 locations throughout the United States and Canada. Marcone also offers a growing suite of services and technology to its customers including training, payroll, insurance, inventory management and field service management.

Jim Souers, Chief Executive Officer of Marcone, stated, “Munch’s has built a strategic partnership with the preeminent industry OEMs, offering the highest quality and most trusted brands in the market. Customers value their partnership with Munch’s, and we hope to build on the relationships they have established to offer additional products and services. As we further build Marcone as a partner serving the appliance, HVAC and plumbing sectors, I look forward to working with Bob Munch and his team to leverage the core tenets of Munch’s philosophy including its reputation as an M&A acquiror of choice in the HVAC sector.”

Bob Munch, Chief Executive of Munch’s, said, “We have built Munch’s over the decades into a one-stop-shop that ensures our customers have a consistent and trusted partner to access the industry’s most iconic brands, enabling them to perform critical installation, repair and service work with minimal downtime. Our growing eCommerce presence will also provide best-in-class technology capabilities and deliver seamless integration with our suppliers and customers. Munch’s local approach to serving the needs of suppliers, customers, and employees is a strong cultural fit with Marcone, and we look forward to becoming part of their family and building Marcone’s HVAC service capabilities to broader geographies.”

Rob Rutledge, Managing Director at Genstar Capital, said, “Munch’s is a terrific business that fits squarely into Jim’s thesis of being the hub for parts and services to the home. We are excited to partner with Bob, Ridgemont and the Munch’s team to accelerate the growth of the platform, including through organic initiatives to better serve our combined customer base and continued M&A opportunities in the sizable HVAC and plumbing markets.”

Jack Purcell, Managing Partner at Ridgemont, added, “Alongside Bob and his team, we expanded the Munch’s platform into several new states, entered the Canadian market and significantly diversified the company’s product offering. Even years before our investment in Munch’s Supply, we admired the company’s legacy as a trusted partner to suppliers and customers at the local level, and we are very pleased to join forces with Genstar and Marcone, an industry leader in the appliance market with a great reputation as a solutions-oriented provider.”

Baird and Houlihan Lokey served as financial advisors to Munch’s. BMO Capital Markets served as financial advisor to Genstar and Marcone. Alston & Bird served as legal counsel to Munch’s. Weil, Gotshal & Manges LLP served as legal counsel to Genstar and Marcone.

About Marcone

Marcone is an authorized distributor for major brands such as Whirlpool, Electrolux, General Electric, Maytag, Bosch, Samsung, L-G and many more. Through its vast distribution network, Marcone supplies the largest inventory of original replacement parts in the country for household appliances such as refrigerators, ranges, dishwashers, microwaves, washers, and dryers.  Marcone exports globally and also operates a comprehensive training institute offering quality business and technical training. Headquartered in St. Louis, Marcone operates 113 facilities, has approximately 2,000 employees, and serves approximately 43,000 technician customers. For more information, visit www.marcone.com.

About Munch’s Supply

Munch’s Supply was founded in 1956 by Willard Munch, who wanted to develop a local source of electrical supplies for area contractors. Today, the Company has more than 1,000 employees focused on supplying heating, cooling and plumbing industry contractors with quality products and exceptional service. Proudly celebrating its 65th year in business in 2021, Munch’s Supply operates with a commitment to service as a leading distributor for trusted brands such as American Standard, Trane, Mitsubishi, Rheem, IPEX, AO Smith, Kohler, Tempstar, Keeprite and Frigidaire. Through Munch’s Holdings, LLC, it operates Munch’s Supply, Tommark, O’Connor Company, Comfort Air Distributing, C&L Supply HVAC and Plumbing, API of NH and Delta T, Marks Supply and TML Supply which continue to serve as the premier sources for HVAC and plumbing equipment and supplies to contractors throughout North America. www.munchsupply.com.

About Genstar Capital

Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for over 30 years.  Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately $33 billion of assets under management and targets investments focused on targeted segments of the financial services, industrials, healthcare, and software industries.

About Ridgemont Equity Partners

Ridgemont Equity Partners is a Charlotte-based middle market buyout and growth equity investor. Since 1993, the principals of Ridgemont have invested over $5.5 billion. The firm focuses on equity investments up to $250 million and utilizes a proven, industry-focused investment approach and repeatable value creation strategies. www.ridgemontep.com

Contact: Chris Tofalli
Chris Tofalli Public Relations                                                                        
914-834-4334

NEW YORK and EDINBURGH, Scotland, Dec. 24, 2021 — Apollo (NYSE: APO) and Miller Homes Group Limited (“Miller Homes” or the “Company”), one of the U.K.’s leading homebuilders, today announced that funds managed by Apollo affiliates (the “Apollo Funds”) have, together with existing management, entered into a definitive agreement to acquire the Company from Bridgepoint Group plc (“Bridgepoint”). Financial terms were not disclosed.

Established in 1934, Miller Homes is a premier homebuilder in the U.K. with a focus on building high-quality family homes in regional markets in England and Scotland. On track for a record 2021, the Company builds approximately 4,000 homes a year across nine regions with ambitions to grow to 6,000 units annually in the medium-term.

Alex Humphreys, Partner at Apollo, said: “We are delighted that the Apollo Funds are acquiring Miller Homes. The Company’s reputation for exceptional customer service and high-quality homes has differentiated it as a respected leading homebuilder. Miller Homes has a strong presence in suburban locations that continue to see strong consumer demand, and we look forward to working alongside the talented management team to execute on their growth strategy.”

Christopher Hojlo, Partner at Apollo, said: “We continue to see opportunities to invest in the residential housing market as consumer demand for new homes accelerates. Today’s announcement further builds on Apollo’s continued commitment to the housing sector, most recently including current and pending investments by Apollo and its affiliates in U.S. homebuilder, The New Home Company, and leading U.K. specialist mortgage lender, Foundation Home Loans. We look forward to leveraging our industry knowledge and relationships to scale the business and to provide more customers with high-quality family homes.”

Chris Endsor, Chief Executive Officer of Miller Homes, said: “This is an exciting development for Miller Homes in continuing our recent strong momentum. Apollo has deep housing expertise, with a global platform, extensive resources and capital to create value for all stakeholders.

“I would like to thank the team at Bridgepoint for all the support they have provided during their ownership of the business. The past four years have witnessed a period of expansion and strong operational performance for Miller Homes, as well as having to adapt the business in exceptional circumstances. We have emerged stronger for it and are very well-placed to achieve our medium-term target of 6,000 units while maintaining the product quality and service for which we are known.”

Jamie Wyatt, partner and co-head of U.K. investment at Bridgepoint, said: “We are delighted to have supported Miller Homes and its management to grow the business over the last four years. Under our period of ownership, the number of houses sold per annum rose by a third, revenues exceeded £1 billion for the first time and profits increased by almost 50%. The business also expanded into new U.K. regions and completed two strategic acquisitions. We wish the whole team and their new investors every success in the exciting next phase of the Miller Homes journey.”

The Apollo Funds have committed financing to complete the acquisition and expect to redeem the existing financing prior to close. The transaction is subject to customary closing conditions and is expected to be completed in the first quarter of 2022.

Rothschild and Co. (Lead) and Moelis & Company LLC are serving as financial advisors to Bridgepoint, and Travers Smith is serving as legal counsel. Barclays (Lead) and HSBC are serving as financial advisors to Apollo, and Sidley Austin LLP is serving as legal counsel. Miller Homes received legal advice from DLA Piper.

Ratos has established Svensk Samverkansentreprenad Aktiebolag (SSEA) Group with the ambition of becoming Sweden’s leading construction group in partnering and collaboration contracts. The Ratos company Vestia Construction Group and HENT’s Swedish operations will be part of the group. The goal is “555”: SEK 5 billion in sales within 5 years, with an EBITA margin of 5%.

“Ratos strongly believes in partnering and collaboration in construction contracts. We know this leads to increased satisfaction and lower total costs for the customer as well as significantly fewer miscommunications. Now all of Ratos’s Swedish construction operations will be part of a joint group following the creation of SSEA Group, Sweden’s leading player in partnering contracts,” says Christian Johansson Gebauer, President Business Area Construction & Services at Ratos.

Vestia Construction Group holds a leading position in partnering and collaboration contracts in the Gothenburg region, with sales of SEK 891m in the last 12 months and an EBITA margin of 5.1%. Ratos acquired 62% of the shares in the company in spring 2021 and since then has been impressed by the company’s ability to have the highest levels of customer satisfaction in the market along with industry-leading profitability.

HENT Sweden has demonstrated impressive growth since it was formed in 2016 and is now an established player within major complex contract partnerships across all of Sweden. The company recently completed Sara Kulturhus in Skellefteå, one of the world’s tallest buildings made out of wood. HENT Sweden had SEK 1,612m in sales in the last 12 months, with an EBITA margin of 2%.

“By combining Vestia’s corporate culture and experience in collaboration and partnering with HENT Sweden’s experience with major complex projects, we’ll create a strong and competitive player in the Swedish construction market. We’ll continue our successful partnerships with the companies’ existing customers while also strengthen our offering for new customers,” says Christian Wieland, incoming President & CEO of SSEA Group.

SSEA Group has signed an agreement with HENT AS to acquire 100% of the shares in HENT Sverige AB. HENT AS will maintain its presence in the Swedish market through a partnership with SSEA Group.

“We’re very pleased to have built up a strong construction contractor in Sweden which will now become part of the new Swedish construction group at Ratos. HENT AS will concentrate its operations in Norway, while we and our customers will still have access to the Swedish market. We look forward to a positive collaboration with our new sister company SSEA Group,” says Jan Jahren, President & CEO of HENT AS.

Christian Wieland will remain CEO of Vestia in addition to his new role as President & CEO of SSEA Group. Jan Krepp, who is currently CEO of HENT Sverige AB, will remain CEO of SSEA (currently HENT Sverige AB).

The foundation of SSEA Group and acquisition of HENT Sverige AB are expected to be concluded in December 2021. The group will be part of the Construction & Services business area at Ratos.

For further information
Christian Johansson Gebauer, President Business Area Construction & Services, Ratos
+46 8 700 17 00

Christian Wieland, incoming President & CEO, SSEA Group
+46 706 54 09 30

About Ratos
Ratos is a business group consisting of 13 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 36 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

Adelis and four entrepreneur-led companies join forces to create Circura, the leading provider of building rehabilitation services in Sweden. Circura will have revenues of SEK 2 billion and focus on the growing segment for rehab, renovation and related services. With Adelis as growth partner, Circura aims to consolidate the market and double revenue by 2025.

The Swedish market for building rehabilitation, renovation and related services amounts to SEK 200 billion per year. The market is expected to grow strongly driven by increasing needs in the public sector, a significant pent-up demand in the residential building stock as well as changing habits following the pandemic. At the same time, the industry is adapting to more ambitious sustainability targets, which include innovative production processes, energy-efficient solutions and circular models for re-usage of material and products.

Circura becomes the market-leading provider of building rehabilitation services in Sweden, with SEK 2 billion in revenue and 400 employees. Reomti, Våtrumsteknik, Heving&Hägglund and Dipart are all entrepreneur-led companies with leading positions within their respective niches. The companies will continue to operate as independent businesses with their current brands and same management, whilst having the benefits, resources and financial strength of a larger group.

Torbjörn Torell will assume the role of working chairman at Circura, bringing over 40 years of experience from the sector, including CEO roles at One Nordic, Svevia and Bravida. The board will also be joined by Ulrika Francke, chairwoman of Vasakronan, former CEO of Tyréns and previously in leading positions at the Stockholm City Council.

“Circura will be a unique player in the market, combining highly successful rehab specialists which, when combined into a larger group, will be able to provide even more competitive and complete services to their customers. The companies will retain their strong customer relationships and entrepreneurial cultures, whilst benefiting from being part of a larger group – the best of both worlds. Together, we will become the industry leader in customer focus, quality and sustainability”, says Torbjörn Torell, chairman at Circura.

With Adelis as growth partner and thanks to its industry experience, Circura sets out to consolidate the industry through acquisitive growth, and double revenue by 2025.

“Adelis has followed the rehabilitation services market over many years, and in particular the pent-up renovation demand that is growing ever more urgent. Simultaneously, we see stricter requirements in terms of quality and sustainability which create attractive opportunities for a larger professional group with greater resources. We are therefore very pleased to establish Circura together with leading entrepreneurs, and we look forward to working with all employees on this exciting growth journey”, says Erik Hallert, at Adelis Equity Partners.

For further information:

Torbjörn Torell, Chairman Circura

Phone: 070-577 40 40

E-mail: torbjorn.torell@circura.se

Erik Hallert, Adelis Equity Partners

Phone: 070-936 80 41

E-mail: erik.hallert@adelisequity.com

About Circura

Circura is the market-leading provider of building rehabilitation services in Sweden. We operate a decentralized and customer-oriented business model, whilst having benefits and strength of a larger group, to rehabilitate and renew buildings with modern and sustainable methods. Circura consists of a group of leading rehab companies, specialised in their respective local markets. Circura has turnover of SEK 2 billion and 400 employees. For more information, please visit www.circura.se.

About Adelis Equity Partners

Adelis is a growth partner for well-positioned, Nordic companies. Adelis partners with management and/or owners to build businesses in growth segments and with strong market positions. Since raising its first fund in 2013, Adelis has been one of the most active investors in the Nordic middle-market, making 28 platform investments and more than 120 add-on acquisitions. Adelis today manages approximately €2 billion in capital. For more information please visit www.adelisequity.com.

The construction company HENT, which is 73% owned by Ratos AB, has signed an agreement valued at SEK 470m with the LKAB mining group. The agreement pertains to a turnkey project including the design, engineering and production of two new residential blocks in Kiruna’s new city centre.

The project will be carried out in a total of four phases, with three separate buildings on each property. The buildings will be five storeys tall and come in two designs. With entrances from their inner courtyards, the buildings will also be equipped with lifts, stairwells and balconies. Each block will also feature parking spaces, playgrounds and areas for socialising.

Carrying out new production projects north of the Arctic Circle is challenging due to the Arctic climate and long transport distances from other areas of Sweden. HENT has gained extensive experience of construction in the region through its involvement in the ongoing Kunskapsstaden project, in which the company is building a 40,000 square metre school. This project is also being carried out in Kiruna’s new city centre and HENT is building the school on behalf of Kiruna Municipality.

“HENT has gained extensive partnering expertise over a number of years, particularly from government and municipal projects. With this project, we have once again been commissioned to build a particularly high-profile project in Sweden. As the company’s owner, we are very pleased,” says Christian Johansson Gebauer, Chairman of the Board of HENT and President, Business Area Construction and Services, Ratos AB.

The planned apartments will have a modern design featuring energy-efficient solutions. The properties will also be equipped with charging points for electric vehicles. The blocks will be designed to provide tenants with a safe environment. The buildings will feature wooden panel facades.

“I am proud that HENT has once again been asked to take part in the relocation of Kiruna’s city centre. Moreover, partnering with a major player such as LKAB is an important step for HENT. We also look forward to continuing our partnership with the local business community as we execute this project,” says Jan Krepp, CEO of HENT Sweden.

For further information:

Christian Johansson Gebauer, Chairman of the Board of HENT and President, Business Area Construction and Services, Ratos AB, +46 8 700 17 00
Jan Krepp, CEO, HENT Sweden, +46 70 146 32 47

About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 34 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

Anders Invest has acquired a 60% participation in Bincx from Kootwijkerbroek. The company engineers, produces and installs steel structures for non-residential construction. Bincx has a turnover of approximately € 80 million and employs more than 100 permanent employees.

Bincx was founded in 2001 and has since grown into one of the larger players in the Netherlands in the field of steel structures for industrial real estate and utility construction in various applications such as production halls, offices, schools, logistics real estate and agricultural applications. The company operates from production and assembly halls at various locations in the Netherlands. The German market is served from Gronau.

Bincx has an engineering department, production with CNC machine lines, a large number of mobile cranes and its own assembly teams. In addition to mounting the steel structures, prefab concrete walls and sandwich roof and facade elements are also mounted. The culture is innovative, with an average of young employees, and there is room for new ideas and self-organization.

The company’s customer base consists of established (international) construction companies and contractors in the Netherlands, Belgium, France and Germany. Bincx also works with a number of Dutch system integrators who deliver turnkey projects in emerging markets.

Anders Invest acquired its interest from founder and director Wilco van den Brink. Mr. Van den Brink will retain a 40% interest and, together with the management, will continue to work actively to achieve further growth and professionalize the organization.