Value Added Distributors Expands with Rotunda Capital Partners Investment
Deal News | Jan 14, 2025 | Rotunda Capital Partners LLC
Rotunda Capital Partners has invested in Value Added Distributors, LLC (VAD), a well-established provider of fluid power products based in Shawano, Wisconsin. VAD supplies hoses, tubes, seals, and couplings to specialty vehicle OEMs and mobile fluid power users, operating from 17 facilities across the Midwest and Southern US. This investment supports VAD's growth strategy through expanding branch locations and product offerings in adjacent categories. Rotunda, recognizing the fragmented nature of the fluid power industry, aims to leverage its operational expertise in family and founder-owned businesses to drive rapid expansion. VAD's founder, Mike Kostelnik, expressed alignment with Rotunda's approach and commitment to quality service, indicating plans to explore growth through both greenfield expansions and acquisitions. The company’s senior management team will continue to lead VAD, indicating stability in leadership post-investment.
Sectors
- Fluid Power Distribution
- Private Equity
Geography
- United States – The article involves a US-based private equity firm, Rotunda Capital Partners, and a company, Value Added Distributors, operating across the Midwest and Southern US.
Industry
- Fluid Power Distribution – The article centers around a company specializing in the distribution of fluid power products such as hoses and tubes.
- Private Equity – Rotunda Capital Partners, a private equity firm, is investing in Value Added Distributors, highlighting the investment aspect of the industry.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Rotunda Capital Partners LLC | Bidding Company | Company | A private equity firm focused on partnering with management teams in transforming businesses. |
| Value Added Distributors, LLC | Target Company | Company | A distributor of fluid power products, leveraging custom fabrication and inventory solutions. |
| U.S. Bank | Financial Advisor | Company | Provided financial advisory services to Value Added Distributors. |
| Mayer Brown LLP | Legal Advisor | Company | Served as legal advisor to Rotunda on the transaction. |
| TPG Twin Brook Capital Partners | Financing | Company | Provided financing for the transaction. |
| Mike Kostelnik | CEO | Person | Founder and CEO of Value Added Distributors, will continue to lead the company post-investment. |
| Dan Lipson | Managing Partner | Person | A managing partner at Rotunda Capital Partners, involved in the investment. |
| John Fruehwirth | Managing Partner | Person | A managing partner at Rotunda Capital Partners, involved in the investment. |
| Rohit Dhake | Principal | Person | Principal at Rotunda Capital Partners, involved in identifying VAD as a suitable investment. |
| Cara Hauan | Team Member | Person | Member of the Rotunda Capital Partners team. |
| Alex Lavery | Team Member | Person | Member of the Rotunda Capital Partners team. |
| David Burt | Senior Management | Person | Part of the senior management team at Value Added Distributors. |
| Larry Lambie | Senior Management | Person | Part of the senior management team at Value Added Distributors. |