Code Hennessy & Simmons LLC Completes Equity Investment in Mainline Supply Company
CHICAGO — Code Hennessy & Simmons LLC (“CHS”) announced today that it has made an equity investment in Mainline Supply Company (“Mainline”), one of the leading wholesale distributors of underground infrastructure products in the Southeast. The investment represents a partnership between CHS, Tim Tysinger, Joe Henderson and the senior management team of Mainline.
Mainline specializes in underground water, sewer and drainage utility products that transmit potable and non-potable water to treatment plants, storage towers, pumping stations and ultimately, to homes and businesses. The company’s customer base includes municipalities, developers and utility contractors involved in residential, commercial and municipal construction projects. Headquartered in Charlotte, North Carolina, Mainline distributes nearly 9,000 SKUs to approximately 1,800 customers through 16 branch locations in seven states in the Southeast and Mid-Atlantic regions.
Tim Tysinger, CEO and President of Mainline, said, “We are poised for continued growth through geographic expansion, new product introductions and complementary acquisitions. We are very excited about the growth opportunities we can pursue through the combination of our premier sales force, strong management team, growth focus and CHS’ capital resources and experience with distribution businesses.”
Peter Gotsch, Partner at CHS, said, “Mainline is well-positioned to pursue internal growth and acquisition opportunities in the waterworks distribution industry. The company’s solid financial performance, seasoned management team and superior IT systems position Mainline as a strong growth platform. We look forward to working with the management team at Mainline on these numerous growth initiatives.”
The investment in Mainline complements CHS’ portfolio of investments in the industrial distribution industry, which currently includes Beacon Roofing Supply, Inc. (NASDAQ: BECN), a distributor of residential and commercial roofing products; The Hillman Group, a distributor of fasteners, key blanks, signage and other small hardware components; Hoboken Wood Flooring Corporation, a distributor of hard surface flooring; Home Acres Building Supply Company, a distributor of gypsum wallboard; Houston Wire & Cable Company (NASDAQ: HWCC), a distributor of specialty wire and cable; Kranson Holdings, Inc., a distributor of rigid packaging solutions; SunSource, a distributor of fluid power products and systems; and TruckPro, Inc., a distributor of aftermarket parts and accessories for heavy-duty vehicles.
CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS has formed five private equity funds and currently manages over $2.5 billion of capital. Funds for CHS’ investment in Mainline come from CHS Private Equity V LP, a $1.3 billion investment fund formed in 2005. For additional information about CHS, please refer to the firm’s website at www.chsonline.com.
For additional information about Mainline, please refer to the company’s website at www.mainlinesupply.net.