St. Louis-based equipment components distributor Marcone acquires Chicago-area HVAC distributor Munch’s Provide
By DianaBarr
Associate Editor, St Louis Business Journal
01/12/2022
Marcone, a Creve Coeur-based distributor of home appliance parts, has acquired suburban Chicago-based Munch’s Supply. The terms were not disclosed.
Munch’s Supply, a distributor of HVAC equipment, parts and accessories, has 65 locations in northern Illinois, Indiana and Michigan, including its headquarters in Hillsdale, Illinois, and employs more than 1,000 people. The company distributes for brands such as American Standard, Trane, Mitsubishi, Rheem, IPEX, AO Smith, Kohler, Tempstar, Keeprite and Frigidaire.
Munch’s, 65, was acquired in 2019 by members of management and Ridgemont Equity Partners, based in Charlotte, North Carolina. With the sale of Munch to Marcone, Ridgemont and Munch’s management team will retain a “significant” minority interest in the combined company, according to a press release.
Marcone, a San Francisco-based portfolio company of Genstar Capital, sells appliance, HVAC and plumbing replacement parts and equipment. Marcone is an authorized distributor for brands such as Whirlpool, Electrolux, General Electric, Maytag, Bosch, Samsung and LG. It operates 113 facilities and has about 2,000 employees and 43,000 customers, officials said.
The acquisition of Munch’s “immediately makes Marcone a leader in the HVAC sector,” officials said in a press release. The deal, coupled with Marcone’s acquisition in December of Professional Plumbing Group, a Concord, Pennsylvania-based distributor of plumbing products, “dramatically expands its home-related services.”
“Munch’s has established a strategic partnership with the industry’s leading OEMs [original equipment manufacturers]who offer the highest quality and most trusted brands on the market,” Marcone CEO Jim Souers said in a statement. “Customers value their partnership with Munch’s and we hope to build on the relationships they have built to… to offer additional products and services.”
Baird and Houlihan Lokey acted as financial advisors to Munch’s and Alston & Bird as legal advisors. BMO Capital Markets acted as financial advisor to Genstar and Marcone with Weil, Gotshal & Manges LLP acting as legal advisor.
Marcone, which claims to have the largest inventory of genuine spare parts for home appliances in the country, also exports worldwide, operates a training institute and offers services such as payroll, insurance, inventory management and field service management. The company was acquired by Genstar Capital in June 2021.
