MANAGEMENT BUYOUT / PRIVATE EQUITY RECAPITALIZATION
Madeira Partners was engaged by the owners of MacQueen Equipment, a leading distributor and service provider of specialized vehicles and equipment for the municipal, airport, emergency, utility, and waste collection markets. Retiring members of management were seeking liquidity while the remaining team sought to increase their stake in the business while continuing to grow organically and via acquisition. Madeira Partners ran a process including leading private equity sponsors across North America to identify a group that would fully support management’s growth strategy while helping to maintain the culture that made MacQueen successful. At the end of the highly competitive process, the MacQueen management team selected Rotunda Capital, a Washington D.C.-based group, due to the combination of valuation, support for the growth vision, and a cultural fit. Under the highly successful partnership with Rotunda, the MacQueen team has significantly grown the business via territorial acquisition and a deeper presence in new product categories.
Dr. David Whiting is a prolific ophthalmologic surgeon in the top 1% of all LASIK surgeons nationally with over 100,000 procedures performed, and the founder of the highly successful Whiting Clinic. Dr. Whiting was interested in continuing with his surgical and clinic activities, but like many physicians in private practice, was stretched thin between patient care and owning a large, complex businesses. Madeira Partners presented Dr. Whiting with the concept of recapitalizing his business in partnership with private equity—providing liquidity and an avenue for renewed focus on daily clinical activities. The process included dozens of private equity sponsors and national LASIK players backed by private equity. After being courted by several groups, Dr. Whiting chose to partner with Vision Group Holdings, a national ophthalmology platform backed by Audax Group. The highly successful transaction generated significant liquidity and eliminated much of the stress of owning a practice, enabling a happier and extended surgical career.
PRIVATE EQUITY ADD-ON
Madeira Partners was engaged by the founder of Gilbert Mechanical Contractors, a large commercial mechanical services provider and contractor with expertise in HVAC, electrical, plumbing, fire protection, and building automation. The retired founder was seeking liquidity while the remaining owners among the management team desired to continue building and growing the successful operation. Madeira Partners helped the management team assess their options, including partnering with a national player that could help with geographic expansion and future acquisitions. The Gilbert team ultimately selected Therma, a California-based specialty HVAC and mechanical contractor backed by Gempspring Capital, due to a strong cultural fit, industry experience, and a similar vision for future growth.
Madeira Partners was engaged by the owner of MindWare, a leading manufacturer of educational children’s toys, games, and books that sources thousands of SKUs globally and sells them in North America and Europe through mass retail, e-commerce, and catalog. While running a full, competitive process including both private equity and strategics, Madeira Partners sought out players with significant product, sales channel, and operational synergies. Madeira identified the ultimate buyer, Oriental Trading—a Berkshire Hathaway company and the nation’s largest direct retailer of party supplies and novelties—as having complementary product lines, along with fulfillment and retailing synergies. The transaction, personally approved by Warren Buffet, generated significant liquidity for MindWare’s shareholders while providing a well-funded parent company to back the management team for future growth and acquisitions.