Mesirow Advises Kentec, Inc. On Its Sale To Carlson Systems Holdings, Inc. and Southern Fastening Systems, Inc.
CHICAGO, June 10, 2015 – Mesirow Financial acted as the exclusive financial advisor to Kentec, Inc. (“Kentec” or the “Company”) on its sale to Carlson Systems Holdings, Inc. (“Carlson”) and Southern Fastening Systems, Inc. (“Southern”), a combined multi-regional fastener and fastening systems distributor, and portfolio company of Tenex Capital Management (“Tenex”), a New York-based private equity firm.
Headquartered in Snellville, Georgia, Kentec is a leading distributor of commercial and industrial quality tools, pneumatic nailing and stapling systems, foam insulation, adhesives and MRO products. With its 89,000 square foot distribution center and nine branch locations throughout the Southeast, Kentec operates through four divisions: retail, industrial, dealer and tool repair services. The Company’s product portfolio consists of both third-party brands and its private label offerings.
The Kentec acquisition further expands Carlson’s and Southern’s sales and service capabilities in the Southeast, enhancing the combined entity’s ability to serve the most recognized participants in the fastening and construction industries. George Morgan, president of Kentec, stated, “I wanted to ensure a great future for my employees and customers. Adding the Kentec team to this organization was the perfect solution to meet the needs of my employees and customers now, and in the years to come. Mesirow Financial’s experience, guidance and thoughtful advice throughout the process resulted in a successful outcome for all parties involved.”
Rocky Pontikes, managing director of Mesirow Financial's Investment Banking group, said, “We were honored to represent the owners of Kentec in this process. We believe the Company’s strong customer base, broad product portfolio and long-standing participation in highly attractive end-markets create a solid addition to the Carlson and Southern platform.”
The transaction represents another successful assignment within the industrial and distribution sectors completed by Mesirow Financial’s Investment Banking group.
About Carlson and Southern
Carlson and Southern are super-regional distributors of power-driven fasteners, packaging supplies and specialty tools for the residential construction and general industrial manufacturing end-markets. In addition to distributing supplies and equipment, the combined company provides value-add services such as equipment repair and maintenance, category management and vendor managed inventory. Carlson and Southern serve customers in 34 states and 136 locations, sourcing more than 20,000 SKUs from over 500 suppliers across NA, Europe and Asia. For additional information, please visit carlsonsystems.com and southernfasteners.com.
Tenex is a private equity firm with over $450M of committed capital that makes control investments in middle market companies. Tenex utilizes an in-house team of hybrid professionals skilled in operational leadership, investing and capital markets structuring to maximize long-term value creation within its portfolio companies. Tenex is based in New York City. For additional information, please visit tenexcm.com.
About Mesirow Financial
Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an independent, employee-owned firm with approximately 1,200 employees globally. With expertise in Investment Management, Global Markets, Insurance Services and Consulting, Mesirow Financial strives to meet the financial needs of institutions, public sector entities, corporations and individuals. For more information, visit mesirowfinancial.com.