Ridgemont Equity Partners has acquired Munch’s Supply, a distributor of heating, ventilation and air conditioning (HVAC) equipment, parts and supplies, from Rotunda Capital.
Munch’s Supply distributes heating and cooling supplies to dealers and contractors and has more than 10,000 SKUs from more than 100 HVAC equipment, parts and supplies manufacturers, including Trane, American Standard, Rheem and Mitsubishi.
The company, founded in 1956 by Willard Munch and led today by CEO Bob Munch (the founder’s grandson), has 27 branch locations in nine states and is headquartered southwest of Chicago in New Lenox, IL (www.munchsupply.com).
Rotunda Capital acquired a majority stake in Munch’s in March 2015. During Rotunda’s investment term, Munch’s tripled in revenues, completed four add-on acquisitions, and expanded from seven locations in one state to 27 locations in nine states.
“On the first day of our investment in Munch’s, we set a goal with the Munch’s leadership team to become the acquirer of choice in the HVAC distribution industry,” said Corey Whisner, a partner at Rotunda Capital. “With four acquisitions under their belt, I believe the Munch’s team has achieved that goal and is poised for future growth.” Just last month, Munch’s acquired Colorado-based Comfort Air, a distributor of Rheem furnaces; air conditioners; tankless, solar and standard water heaters; and geothermal systems to HVAC contractors in Colorado and 13 Wyoming counties.
Rotunda Capital invests in businesses with enterprise values of $15 million to $100 million. Sectors of interest include logistics, value-added distribution, specialty finance, and business services. The firm was founded in 2009 and is headquartered in Bethesda, MD with an office in Evanston, IL (www.rotundacapital.com).
Ridgemont focuses on middle market buyout and growth equity investments of $50 million to $250 million. The firm invests in the following sectors: business and industrial services, energy, healthcare, and technology and telecommunications. In December 2018, the firm held an oversubscribed final closing of Ridgemont Equity Partners III LP with $1.65 billion in commitments. Ridgemont is headquartered in Charlotte with an additional office in Dallas (www.ridgemontep.com).
Lincoln International (www.lincolninternational.com) was the financial advisor to Munch’s Supply. Baird (www.baird.com) and Livingstone (www.livingstonepartners.com) were the financial advisors to Ridgemont.
Financing for the transaction was led by incumbent lenders PNC Erieview Capital, Kayne Anderson Private Credit and JPMorgan, with additional support provided by AEA Private Debt, PineBridge Private Credit and Stellus Capital Management.