ST. LOUIS — Marcone, a distributor of home appliance, HVAC, and plumbing repair parts and equipment across North America and current portfolio company of Genstar Capital, announced that it has acquired Munch’s Supply (“Munch’s”), a distributor of HVAC equipment, parts, and supplies from Ridgemont Equity Partners. The acquisition, combined with another recent acquisition of plumbing distributor Professional Plumbing Group (“PPG”), dramatically expands Marcone's services to the home. Ridgemont and the Munch’s management team will retain a meaningful minority stake in the combined entity.
Founded in 1956, Munch’s Supply is a supplier of HVAC and plumbing replacement parts and equipment. Headquartered in Hillside, IL, Munch’s sells approximately 135,00 SKUs across 65 facilities with a workforce of approximately 1,100 employees. With the addition of Munch’s, Marcone now operates in three large, growing markets within the home (appliances, HVAC, and plumbing) servicing millions of homes, 43,000 technicians and larger strategic customers such as property managers, retailers, home warranty, and ecommerce providers with tens of millions of parts sold annually across its 113 locations throughout the United States and Canada.
“Munch’s has built a strategic partnership with the preeminent industry OEMs, offering the highest quality and most trusted brands in the market," said Jim Souers, chief executive officer of Marcone. "Customers value their partnership with Munch’s and we hope to build on the relationships they have established to offer additional products and services. I look forward to working with Bob Munch and his team to leverage the core tenets of Munch’s philosophy including its reputation as an M&A acquirer of choice in the HVAC sector.”
“We have built Munch’s over the decades into a one-stop-shop that ensures our customers have a consistent and trusted partner to access the industry’s most iconic brands, enabling them to perform critical installation, repair, and service work with minimal downtime," said Bob Munch, chief executive of Munch’s. "Our growing eCommerce presence will also provide best-in-class technology capabilities and deliver seamless integration with our suppliers and customers. We look forward to becoming part of [Marcone's] family and building their HVAC service capabilities to broader geographies.”
Baird and Houlihan Lokey served as financial advisors to Munch’s. BMO Capital Markets served as financial advisor to Genstar and Marcone. Alston & Bird served as legal counsel to Munch’s. Weil, Gotshal & Manges LLP served as legal counsel to Genstar and Marcone.