CLEVELAND, April 4, 2016 /PRNewswire/ -- Weinberg Capital Group ("WCG") announced today the recapitalization of Elyria, Ohio-based HoodMart, Inc. ("HoodMart" or the "Company"). The recapitalization was led by a group of private investors managed by WCG. Following the transaction, HoodMart founder and Chairman, Daniel B. Reaser, Sr., will remain a shareholder and serve on the Company's board of directors.
Founded in 2000, HoodMart specializes in the design, manufacture and sale of ventilation systems for the large and growing commercial cooking industry. The Company was originally established as a traditional commercial cooking equipment manufacturer utilizing large national equipment distributors to market its products. In 2004, Mr. Reaser realized that he could better serve his ultimate customer, the true end user, by supplying exhaust hoods directly to restaurateurs and kitchen managers. With that idea in mind, the Company developed its HoodMart brand name and became the pioneer in the direct-to-end-user business model for commercial cooking exhaust hoods. Through its www.hoodmart.com website, the Company's products are marketed direct-to-end-users and thereby avoid heavy dealer markups, with the savings being passed on to the customer. HoodMart's primary customers include individual restaurateurs, small restaurant groups, HVAC installers and smaller commercial kitchens such as those found in convenient stores and office cafeterias. As a factory direct seller, the Company is able to offer competitive prices while also maintaining high quality standards, rapid lead times and customized solutions. As a result, HoodMart has grown to become the market leader for factory direct sales of commercial exhaust hoods.
"We are very pleased to be partnering with Mr. Reaser and his talented team," stated Ronald E. (Chip) Weinberg, Jr., Managing Director & Principal at WCG. "The Company has a long track record of success and we intend to continue this tradition by investing in continued growth while maintaining its strong reputation for customer service. We look forward to augmenting the in-place team with our operating experience and relationships to make HoodMart an even more valuable partner to its customers and installer partners."
Commenting on the transaction, Mr. Reaser stated, "We are pleased with our new affiliation with WCG and the role they will play in our growth plans. With their experience and resources we anticipate a long-lasting partnership underscored by geographic and customer expansion, product innovation and a continued focus on the highest levels of service. Importantly, from the perspective of our customers and installer partners, the transaction will be seamless as our entire team will remain in place as we look to enhance an already robust business."
HoodMart will remain headquartered in Elyria, Ohio, a suburb of Cleveland. Senior financing for the transaction was provided by First National Bank and $10 million of mezzanine financing and equity co-investment was provided by F.N.B. Capital Partners. Legal representation to WCG was provided by Kohrman Jackson & Krantz LLP and accounting diligence was provided by HW&Co.
WCG is actively seeking add-on acquisitions for HoodMart.
About Weinberg Capital Group
WCG is a Cleveland, Ohio based private equity group whose principals consist of Ronald E. Weinberg, Ronald E. (Chip) Weinberg, Jr., John E. Herman and Cameron S. Miele. WCG invests in well-positioned middle market companies. WCG focuses on firms where the current ownership and management reinvest in the transaction, and management remains in place, affording current shareholders and management an opportunity to achieve liquidity coupled with ownership continuity. WCG invests in companies throughout North America with annual revenue from $15 to $100 million and EBITDA ranging from $2 to $10 million. The firm's current portfolio covers a broad range of industries including manufacturing, business services, aviation services, financial services, consumer products, retail and value added distribution. Additional information on WCG can be found at www.weinbergcap.com.
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SOURCE Weinberg Capital Group