KCM CAPITAL COMPLETES ACQUISITION OF MASON WEST
Acquisitions of Mason West and AJ Engineering Continue KCM’s Strategy of Partnering with Owner-Led Businesses to Support Their Next Phase of Growth
July 6, 2020
Chicago-based private investment firm KCM Capital Partners LLC (“KCM”), an investor in lower middle-market business services, value-added distribution and specialty industrial companies, announced today that on July 6, 2020, it completed the acquisition of Mason West, LLC and AJ Engineering, LLC (collectively, “Mason West” or the “Company”) headquartered in Placentia, California. The transaction was completed in partnership with Company management and Gladstone Investment Corporation (Nasdaq: GAIN) (“Gladstone Investment”) based in McLean, Virginia. Terms of the transaction were not disclosed.
Founded in 1973, Mason West is a leading provider of specialty engineered seismic restraint and vibration isolation solutions to mechanical, electrical and plumbing contractors serving multiple building end markets throughout the West Coast. Mason West’s rich history of providing the marketplace with world class engineering talent, fabrication services and specialty engineered products offer a differentiated and turnkey approach, thereby delivering substantial value to its customers.
Company management, led by John Mastropolo, Pat Lama, Todd Noce and Aaron Steger, built the Mason West business over the last 30 years before deciding to partner with KCM to position the Company for enhanced growth. Consistent with KCM’s investment philosophy – Keeping Continuity Matters – Mason West will remain under the guidance of current leadership, who remain actively invested in the business and will continue to oversee day-to-day operations. “Sustaining and improving the decades’ long relationships we have with our customers is our top priority,” commented Mason West CEO John Mastropolo. “KCM’s approach is rooted in these same principles, and as such, I’m confident our new partnership will increase our ability to forge a broader customer base while continuing to provide the products and engineering solutions our contractors require in the high quality and timely fashion that our industry expects. We are proud to be part of the KCM and Gladstone team.”
“The Mason West senior leadership team has built an incredibly strong foundation through best-in-class customer service and a relentless commitment to quality engineered products,” said Derek Ferguson, Partner at KCM. “KCM looks forward to building upon the Company’s well-established heritage by providing both strategic and financial resources to Mason West management and employees to help accelerate their growth and increase the Company’s already diverse product offering to its customer base. We are highly appreciative of the strategic capital support provided by our partner Gladstone Investment and look forward to executing this strategy together with them and Company management.”
Gladstone Investment provided both equity and senior debt financing in support of the transaction, while Katten Muchin Rosenman LLP served as legal counsel to KCM. The Cosine Group, a division of Armory Securities LLC, served as exclusive financial advisor and Honigman LLP as legal counsel to Mason West.
About Mason West:
Headquartered in Placentia, California, Mason West is a leading provider of specialty engineered seismic restraint and vibration isolation solutions serving mechanical, electrical and plumbing contractors throughout the West Coast building market. Operating for over 40 years, the Company provides mission-critical products and solutions to its customers inclusive of seismic design, vibration isolation, acoustical floors, walls and ceilings, pipe thermal analysis, custom steel support design, flow control, venting, 3D seismic brace coordination and certified seismic layouts that improve a facility’s safety and comply with stringent building code and regulatory requirements. For more information, please visit www.masonwest.com.
About KCM Capital Partners:
KCM Capital Partners is a Chicago-based private investment firm focused on investing in lower middle-market business services, value-added distribution and specialty industrial businesses throughout the U.S. Founded in 2017, KCM follows a simple philosophy – Keeping Continuity Matters – which is emblematic of our belief in the importance of a healthy culture and collaborative, trustworthy partnerships. With this strategy in mind, we look to support founders and management teams of niche market leaders with creative solutions and strategic guidance to effect transformational growth. For more information, please visit www.kcmcap.com.
Contact:
Derek Ferguson
Partner
(312) 577-8506
dferguson@kcmcap.com