CAPE ELECTRICAL SUPPLY, LLC ANNOUNCES ACQUISITION OF
ELECTRICAL SALES ENGINEERING, INC.
CHICAGO, IL – July 1, 2008 – Cape Electrical Supply, LLC (“Cape”), a portfolio company of Svoboda Capital Partners, LLC (“SC”), is pleased to announce the acquisition of Electrical Sales Engineering, Inc. (“ESE”). The transaction is the first add-on acquisition for Cape since SC invested in November 2007. Madison Capital Funding LLC provided senior debt to complete the transaction. Specific terms of the transaction were undisclosed.
Based in Bowling Green, Kentucky, ESE is a leading regional distributor of utility products. The Company has been in business for over 45 years with a customer base that includes Rural Electrical Cooperatives, Investor Owned Utility Companies, Municipalities, and Power Generation Facilities across Kentucky, Indiana, and Tennessee.
Post-transaction, ESE will continue to operate from its Bowling Green location, and will become a dedicated utility distributor among Cape’s existing branch and distribution network. Company founder and President Bob Armstrong will remain with the company in a consulting capacity going forward.
“Adding a company with the strength of ESE to our business will make us a more well rounded supplier,” said Cape President Allen Toole. “We are very bullish about the prospects for the electrical utility industry over the next several years. Combining with ESE positions Cape for growth in this segment of the electrical industry.”
About Cape Electrical Supply, LLC
Cape Electrical Supply, LLC, headquartered in Cape Girardeau, MO, is a regional distributor of electrical and communication products serving commercial, industrial and residential contractors, as well as industrial, utility, and retail customers. The Company offers one of the broadest and most extensive portfolios of electrical supplies and equipment, consisting of over 25,000 products that represent many of the top-tier suppliers in the industry. The Company currently operates 19 distribution and retail locations in Missouri, Illinois, Tennessee, and Kentucky. For more information, please visit www.capeelectric.com.
About Svoboda Capital Partners, LLC
Svoboda Capital Partners is a Chicago-based private equity firm that invests in and helps build leading value-added distribution, consumer and business services companies in the lower middle-market. Founded in 1998, SC has $250 million of capital under management. For more information, please visit www.svoco.com.
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