[April 12, 2019]

Rotunda Capital Partners Sells Munch's Supply to Ridgemont Equity Partners

Rotunda Capital Partners, LLC ("Rotunda"), a private equity firm focused on lower middle market and family-owned holdings, announces the sale of Munch's Supply, a leading wholesale HVAC distributor, to Ridgemont Equity Partners. Financial terms of the transaction were not disclosed.

Munch's Supply, based in New Lenox, Illinois, serves residential and commercial customers in the Midwest, Great Plains and Mountain states, distributing products from more than 100 trusted HVAC equipment, parts and supplies manufacturers, including Trane (News - Alert), American Standard, Rheem and Mitsubishi.

Rotunda acquired a majority stake in Munch's in 2015. Since Rotunda's investment, Munch's tripled in revenues, completed four acquisitions, and expanded from seven locations in one state to 27 locations in nine states.

"On the first day of our investment in Munch's, we set a goal with the Munch's leadership team to become the acquirer of choice in the HVAC distribution industry," said Corey Whisner, partner at Rotunda Capital Partners. "With four acquisitions under their belt, I believe the Munch's team has achieved that goal and is poised for future growth."

"Rotunda was a true partner to Munch's, providing valuable strategic insight while investing in people and resources to help us achieve our goals," said Bob Munch, CEO of Munch's Supply. "We are a significantly larger, stronger, and better organization because of our partnership with Rotunda."

Rotunda Partner Dan Lipson credits Munch's historically strong company culture and customer-sevice focus, which have not wavered during the company's rapid growth. "The Munch's management has done an outstanding job investing in its people and infrastructure to maintain its commitment to best-in-class service, while substantially expanding the organization," said Lipson.

Ridgemont Equity Partners, a middle market private equity investor, looks to continue Munch's growth trajectory in partnership with existing management through further investment and increased M&A initiatives.

The transaction closed on April 11, 2019. Lincoln International acted as financial advisor to Munch's and Benesch Friedlander served as legal counsel.

About Munch's Supply

Munch's Supply is a leading wholesale distributor of HVAC equipment, parts and supplies to residential and commercial customers in the Midwest, Great Plains and Mountain states. The Company distributes products from more than 100 leading HVAC equipment, parts and supplies manufacturers, including Trane, American Standard, Rheem and Mitsubishi (News - Alert). Munch's Supply was founded in 1956 and is headquartered in New Lenox, Illinois. www.munchsupply.com

About Rotunda Capital Partners

Rotunda Capital Partners is a private equity firm that invests equity capital in established and profitable lower middle-market companies. As an independent deal sponsor, Rotunda Capital raises and invests the capital of its principals, institutions, family offices and high net worth individuals on a deal-by-deal basis. The firm uses a rigorous approach to identify market-leading companies with identifiable growth opportunities and capable management teams in targeted sectors, including distribution, logistics, financial services and business services. Rotunda Capital partners with industry-leading operating executives to grow each portfolio company. Since 2009, Rotunda Capital has completed 12 platform investments and realized four exits. The partners of Rotunda Capital actively provide guidance and draw on deep industry and financial relationships to contribute to the successful execution of Rotunda's companies' strategic plans. For more, visit www.rotundacapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190412005042/en/

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