Acquisition presents first new platform of 2015.
Weinberg Capital Group (WCG) announced the acquisition of Melrose Park, Ill.-based Mechanical Servants LLC D/B/A Convenience Valet (CV).
The company was purchased by a group of investors led by WCG from David Baum, who will remain a significant shareholder of CV and continue in his current role as president & CEO.
Founded in 1946, CV is the originator and leading value-added distributor of blister pack (windowed) branded convenience / travel size health and beauty care products, over-the-counter drugs, personal care products and sundries sold in small-portion packages.
The company acquires branded products from the manufacturer and then repackages the products in convenient size (single / double dose) and trial / travel size packages for over 100,000 retail locations, which include grocery stores, convenience stores, drug stores, gas stations, mass merchants, warehouse clubs, travel centers, airports, hotels and cruise lines.
The company distributes over 500 branded products and has established an expansive distribution network, through which its partners’ products can efficiently reach consumers on a nationwide basis.
“We are very pleased to be partnering with David Baum and his talented team,” stated Ronald (Chip) Weinberg, Jr., managing director and principal at WCG. “The company has been owned by the Baum family for almost 70 years and we intend to continue their tradition of innovative product development, value-added design and planogramming and excellent customer service. We look forward to augmenting the in-place team with our operating experience and relationships to make CV an even more valuable partner to its customers and supplier partners.”
Commenting on the transaction, Baum stated, “We are pleased with our new affiliation with WCG and the role they will play in our growth plans. With their experience and resources we anticipate many years of success as we build upon the legacy my father established in 1946. Importantly, my entire senior team will remain with the Company as we look to enhance an already robust business.”
CV will remain headquartered in Melrose Park, Ill., a suburb of Chicago. Senior financing for the transaction was provided by KeyBank National Association out of Cleveland, Ohio. Mezzanine financing and an equity co-investment were provided by Wexford, Pa.-based F.N.P. Capital Partners, L.P.
WCG is actively seeking add-on acquisitions for CV.
