Southfield Capital Completes Sale of RCR
GREENWICH, Conn., June 23, 2014 /CNW/ - Southfield Capital, a private investment firm focused on the lower middle-market, announced today that it completed the sale of RCR International, Inc. ("RCR"), to Peak Rock Capital. Based in Boucherville, Quebec, RCR is a leading manufacturer, marketer and value-added distributor of home insulation, flooring and utility products sold through the do-it-yourself channel in Canada and the U.S. The terms of the transaction were not disclosed.
Founded in 1946, RCR is a leader in the Canadian home improvement market with a broad product offering and exceptional customer service. RCR's products are used by consumers to maintain and enhance the comfort and energy-efficiency of their homes and are primarily featured by retailers in the home improvement and do-it-yourself categories. The Company's core product portfolio of door and window insulation, indoor/outdoor flooring and utility accessories includes some of the most recognized and highest quality brands, such as Climaloc®, the top selling Canadian brand of consumer weatherstripping, ComfortPlus®, Dennis®, PolarGrip® and Topsi®.
Southfield Capital acquired a majority stake in RCR in April 2006. Under Southfield's ownership, RCR built on its market leading position and significantly enhanced shareholder value. This value creation was accomplished through several key operational improvements, including (i) increasing focus on working capital management (ii) diversifying product offering to augment RCR's core insulation product lines (iii) recruiting additional senior management talent (iv) institutionalizing key business practices and processes, and (v) divesting non-core business units.
Lincoln International acted as exclusive financial advisor to RCR. Fasken Martineau acted as legal advisor to RCR.
About Southfield Capital
Founded in 2005, Southfield Capital provides capital for majority recapitalizations and management-led buyouts of lower middle-market businesses. The firm makes control investments in North American companies generating $5-$15 million in EBITDA with proven business models, attractive growth and profitability trends, and solid leadership. In addition, the firm just recently began managing a Small Business Investment Company ("SBIC") mezzanine fund, which targets similar types of companies as the private equity fund. More information on Southfield Capital can be found at www.southfieldcapital.com.
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