Contact:
Paul L. Davies III or Christopher Sekula
The Cambria Group
(650) 329-8600
The Cambria Group Completes Investment in Bacrac Supply Company
FOR IMMEDIATE RELEASE
MENLO PARK, California, October 31, 2000 – The Cambria Group announced today that it had made a substantial equity investment in Bacrac Supply Company, a leading distributor of expendable tools and supplies used by heavy construction contractors.
Cambria acquired a majority stake in the Company, providing an infusion of patient capital to stimulate and support its future growth and to provide liquidity to its long-time owners. The transaction is illustrative of Cambria’s investment format, in which the firm acquires a control position in an operating company, but does so in conjunction with management and with a commitment from the selling shareholder to retain a significant financial stake.
According to Lew Davies, Cambria’s Managing Principal, Bacrac is typical of the companies in which Cambria seeks to invest: "Bacrac is a perfect fit for Cambria--a smaller, low-tech distribution business, with a strong competitive position in a niche market and a history of sustained profitability." Cambria brings critical resources to the Company--having arranged a credit facility to support future growth--and will seek to build the Company further both organically and by considering strategic acquisitions. According to Mr. Davies, "Cambria’s equity infusion, together with credit provided by two strong lenders in Wells Fargo Bank and Comerica Bank, positions the Company well to take advantage of growth opportunities before it."
Bill McTee, one of the Company’s three shareholders prior to Cambria’s investment, will also remain actively involved in the business, continuing to serve as the Company’s President and as a director and retaining a significant financial interest. Marshall Winn, who has led the sales organization through a period of rapid growth, will also remain active, while a third shareholder will transition to a consulting role. All members of the functional management team will remain as well.
Christopher Sekula, a Principal at Cambria, emphasized the importance of this continuity: "We invested in an excellent company, so we have the luxury of building on a strong base, which includes the management team." These three men spent twenty-three years building this business and will continue to bring their knowledge and skill to bear, while they transition to the next generation of leaders." Mr. Sekula added that Cambria will effect changes typical of its approach in acquiring lower middle-market businesses—enhancing the management team, establishing a board which will include outside directors, upgrading financial systems, and adopting a longer-term planning horizon.
Founded in 1973, Bacrac Supply Company is recognized as one of the leading distributors of "expendable" tools and supplies to heavy construction contractors in the Dallas/Fort Worth metroplex. The Company has developed a reputation for providing exceptional service to its customers, which has in turn resulted in a long history of strong growth and sustained profitability. The Company’s focus is on north Texas, though it serves customers in other states throughout the southern United States.
Founded in 1996, The Cambria Group is a private equity firm which acquires and invests in small and mid-sized operating businesses across a wide spectrum of manufacturing, distribution and service industries. The firm’s acquisition targets are generally stable, profitable businesses with valuations under $25 million--typically, private companies or corporate divestitures and all pursued on a friendly basis--where the companies lack both the high growth sought by venture capitalists and the scale required to interest traditional fund-based buyout firms. Cambria’s principals, each of whom has an operating as well as transactional background, provide the majority of the equity themselves and take an active approach in their roles as shareholders and board members.
To date, the firm has made seven investments, including Cobblestone Golf Group, a golf course ownership and management company; Crossbow Technology, a manufacturer of motion-based sensor and actuator products; Classroom Connect, an educational publisher focusing on internet products for K-12 classrooms; FleetPride, a distributor of heavy duty truck parts; DSA/Phototech, a manufacturer of illuminated display systems used in store fixture, point-of-purchase and trade exhibit applications; WorldPoint Logistics, a third-party transportation logistics management company; and Bacrac Supply Company. Cambria is actively pursuing other acquisition and investment opportunities and plans to assemble a portfolio of approximately ten to twelve stand-alone companies over the next few years.
Cambria’s primary office is in Menlo Park, California, with a satellite office in Waltham, Massachusetts.
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