Rotunda Capital Partners Partners with Innovator Value Added Distributors

Investment by Rotunda Capital Partners

Rotunda Capital Partners has made a significant investment in Value Added Distributors, LLC, marking a strategic partnership that aims to enhance the company's growth trajectory. This collaboration involves the existing owners and management team, which highlights Rotunda's commitment to partnering with businesses that have a strong foundation and potential for expansion.

About Value Added Distributors, LLC

Established in 1995, Value Added Distributors specializes in distributing hoses, tubes, seals, couplings, and related products catered to specialty vehicle OEMs and mobile fluid power users. With operations spanning 17 facilities across various regions, the company delivers exceptional services such as custom fabrication, assembly, kitting, and vendor-managed inventory solutions.

Strategic Vision for Growth

Rohit Dhake, Principal at Rotunda, expressed the firm’s long search for a suitable platform in the fluid power industry. Their focus was drawn to the technical nature and diverse, growing markets within this sector. According to Dhake, Value Added Distributors stood out due to its leading position within the industry, diverse customer base, and impressive history of organic growth.

Leadership Insights

Dan Lipson, Managing Partner at Rotunda, emphasized the strong foundation that Value Added Distributors has created and the exciting potential for growth through their partnership. He mentioned the intent to open additional branch locations to enhance local service and to expand product offerings through acquisitions. There is an ambition to diversify their portfolio to include products such as filtration and motion control systems, which are already part of their customer's operations.

Commitment to Customer Service

Mike Kostelnik, the founder and CEO of Value Added Distributors, shared his enthusiasm about the partnership with Rotunda. He noted the company’s long-standing commitment to customer service and the intention to leverage Rotunda's resources to accelerate growth. Kostelnik also highlighted the plans for geographic expansion through new facilities and acquisitions.

Expert Team and Advisors

The investment team at Rotunda includes experienced professionals such as Dan Lipson, John Fruehwirth, Rohit Dhake, Cara Hauan, and Alex Lavery. In this strategic transaction, U.S. Bank acted as the financial advisor and Mayer Brown LLP provided legal counsel.

More About Value Added Distributors

Value Added Distributors is focused on delivering advanced hydraulic hose assemblies, kitting solutions, and managed inventory services across various industries. Their commitment to applied technology ensures they provide valuable solutions tailored to clients' needs.

Exploring Rotunda Capital Partners

Founded in 2009, Rotunda Capital Partners is an operational private equity firm dedicated to transforming founder and family-owned businesses into efficient, data-driven companies. The firm operates primarily in areas of value-added distribution, asset-light logistics, and industrial services. The Rotunda Performance System aims to create robust infrastructures, strategic alignment, and lean processes that facilitate rapid growth.

Frequently Asked Questions

What is the purpose of Rotunda's investment in Value Added Distributors?

The investment is aimed at enhancing Value Added Distributors' growth potential and expanding services and market reach.

What products does Value Added Distributors specialize in?

They specialize in hoses, tubes, seals, couplings, and related products, mainly for specialty vehicle OEMs and fluid power users.

How many facilities does Value Added Distributors operate from?

Value Added Distributors operates from 17 facilities located across the Midwest and Southern regions.

What kind of growth strategies does Rotunda plan with VAD?

Rotunda plans to help VAD open new branch locations, expand product offerings, and pursue acquisitions in related industries.

What is the main focus of Rotunda Capital Partners as a private equity firm?

Rotunda focuses on transforming family-owned businesses into data-driven platforms to achieve significant growth.

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