Ronin Fairness Companions publicizes the creation, by way of three simultaneous acquisitions, of a diversified producer of small- to medium-scale out of doors energy tools and utility trailers. The three merging companies deal with householders with greater than 5 acres of land and on small-scale landscapers, ranchers and farmers. Two of the companies, DK2 and SnowBear, are based mostly in Ontario, Canada, and the third enterprise, Currahee Trailers, is headquartered in Mount Ethereal, Georgia. The mixed firm could have over 50 years of working expertise.
Working below the DK2 company identify, the merged group will provide a wide array of woodchippers, snowplows, winches and utility trailers. The house owners and senior administration groups of all three firms have retained a big stake within the merged group and stay actively concerned in firm administration.
“These three companies are serving to to create a brand new class of high-end customers and small-scale skilled customers for out of doors energy tools and utility trailers. We see vital development on this prosumer demand for years to return,” says David Feierstein, managing associate of Ronin.
“We’ll mix the perfect of the businesses’ manufacturing and supply fashions, lengthen these capabilities to complementary tools classes, and finance natural growth and acquisition,” says Ronin Associate Tiffany Bell, who joins DK2 as CFO.
Though the acquisition value is undisclosed, on a merged foundation the group registers annual revenues in extra of $60 million and exhibits common annual gross sales development over the previous 5 years of 40-plus %. Ronin has reserved greater than $25 million to fund extremely synergistic acquisitions for DK2 and is at the moment in discussions with a number of targets. Greater than 35 complementary companies have been recognized.
“That is extra than simply an funding,” says Steve Malizia, founder and CEO of DK2. “Ronin is bringing us back-office sources and scaling expertise, whereas reinforcing working muscle in order that we will exceed our base potential as a mixed group.”
On the merged DK2, Malizia will function CEO, alongside new Chairman Doug Robinson, one in every of greater than 30 Ronin Working Advisors – a bunch that helps supply transactions and advises on techniques and technique. Over a 30-year profession, Robinson served as CEO of a number of residence enchancment, equipment, and constructing supplies firms. A former President of Worldwide Operations and Improvement for Lowe’s Firms, Robinson headed the group’s e-commerce initiative.
Becoming a member of Malizia and Robinson on the brand new DK2 board are 4 different Ronin Working Advisors: Jim Core, previously President of the Skilled Division at Residence Depot; Tory Upham, beforehand Normal Supervisor at Dakine, an outside tools firm; Gabriel Arreaga, Chief Provide Chain Officer at Kroger; and Mark Traylor, previously President of the AMES Firms, a non-powered garden and backyard instruments firm.
The acquisition of the three firms was financed utilizing Ronin’s steadiness sheet, with investments from a spread of restricted companions, together with Stephens Capital Companions, Northwood Ventures and Knott Companions.
Ronin and its buyers have deployed, or reserved for follow-on portfolio funding, in extra of $350 million. The capital was dedicated to 4 platform investments, comprising a complete of 14 firms. Aside from DK2, Ronin’s three different buy-and-build platforms cowl industrial refrigeration, the specialty cheese business and wastewater purification and filtration.
Triago Americas, Inc., acted as the only real placement agent on all of Ronin’s platform investments, together with the DK2 transaction. Katten Muchin Rosenman LLP and McCarthy Tetrault LLP acted as Ronin’s authorized advisors on its newest platform funding; buyside M&A advisors had been Harvey & Firm and Robert W. Baird. Debt was supplied by Royal Financial institution of Canada as Lead Left Bookrunner & Administrative Agent; by HSBC and by Nationwide Financial institution of Canada as Joint Lead Arrangers; Desjardin acted as a debt Participant.