MCM Capital Partners Completes Sale of Portfolio Company Torsion Group Corp.
FOR IMMEDIATE RELEASE – March 10, 2022 – MCM Capital Partners (“MCM”), a lower middle market private equity fund, is pleased to announce the sale of Torsion Group Corp (“TGC”), a vertically integrated manufacturer and distributor of garage door parts and accessories, to Kaulig Capital. The transaction resulted in an attractive outcome for MCM, its shareholders and the TGC management team. During our partnership, TGC grew revenues and EBITDA by 115% and 280%, respectively, while more than doubling employee headcount.
“TGC experienced tremendous growth over the past five years, and it has been our privilege to work with such an exceptional team.” stated Bobby Kingsbury, Managing Director at MCM Capital. “The business has truly transformed through a dedicated investment in people, facilities, processes and systems. Kaulig Capital is inheriting a great business with even better people.”
MCM acquired TGC in 2016 as part of its direct sourcing effort to acquire businesses positively affected by the trends in the home renovation and remodel market. At the time of our investment, Torsion Group Corp was a fragmented family of companies, each operating independently, but boasted best in class fulfillment, differentiated products and served a fragmented and growing market. MCM partnered with the incumbent CEO and minority shareholder Marc Calcaterra to support a common strategic vision and accelerate growth. In concert with MCM, Mr. Calcaterra built out an exceptional management team, and the outstanding results of the past five years have been a product of numerous decisions, actions and efforts by Marc and his team.
During MCM’s ownership TGC upgraded and expanded its manufacturing footprint three times, from 5,000 sq. ft. to 60,000 sq. ft., to accommodate its vertical integration strategy and moved its headquarters into a modern 70,000 sq. ft. distribution center to strengthen its already best-in-class lead time and fulfillment. Additionally, the Company added rubber extrusion, injection molding, thermoforming and robotic automation to round out its manufacturing capabilities.
Finally, MCM directly sourced the add-on acquisition of North Shore Commercial Door (“NSCD”), an online retailer of garage door parts and accessories, after identifying the DIY e-commerce market as a strategic growth opportunity. The acquisition provided a new sales channel, significant cross-selling opportunities and allowed the Company to leverage North Shore’s marketing expertise across its OEM, aftermarket and dealer channels.
“The TGC team executed the strategic plan flawlessly, greatly expanding its manufacturing capabilities through a series of facilities and systems integrations while improving their already best-in-class lead time and fulfillment to its customer base.” said MCM Senior Operating Partner Greg Ott and Chairman of the Board at TGC.
Marc Calcaterra, CEO of TGC, added, “It’s been an amazing five years. We exceeded our financial goals, but more importantly transformed the business into something we can all be proud of. Through a collective effort, we’ve made significant progress in professionalizing the business and setting it up for continued success.”
Calfee Halter & Griswold served as counsel and Hennepin Partners served as the investment banker to TGC and MCM Capital. Chief Financial Officer Kevin Hayes was also a key member of MCM’s investment team.
