Heritage Partners Inc., Boston, a private-equity firm focused on family-owned businesses, has completed the recapitalization of One Source Distributors Inc., Oceanside, Calif., giving it a 49 percent stake in the company.
The transaction was structured as a Heritage Partners Private initial public offering (IPO), allowing the shareholders to receive liquidity, capital for growth and retain control of the firm.
Bob Zamarripa, OneSource's CEO and president, will continue to own 51 percent of the company. The company will now have a five-member board, which will include two partners from Heritage Partners.
With annual sales of approximately $175 million, 11 locations and 280 employees, OneSource, a family-owned business, ranks as the nation's 35th biggest electrical distributor, according to Electrical Wholesaling's 2006 listing of the Top 200.
Heritage Partners, with $1.4 billion in capital under management, is a private-investment firm specializing in the acquisition and equity-based recapitalization of private, family-owned businesses. Since 1987, the partners have assembled a diverse portfolio of 48 investments with aggregate revenues approaching $3.5 billion. Heritage Partners typically invests $15 million to $75 million per transaction.
OneSource Distributors operates through three regional California sales divisions: San Diego, Orange County and the greater Los Angeles area. OneSource Distributors was wholly owned by its two founders, Zamarripa and Executive Vice President Paul Judge. Judge hopes to retire in the next two to three years and was looking to begin phasing out of the business, according to a spokesperson for Heritage Partners.
“Heritage's investment provided an ideal mix of liquidity and continued ownership,” said Zamarripa. “Its expertise in investing in closely held businesses and their private IPO structure made them compelling potential partners. We look forward to leveraging their financial and strategic guidance as we service and expand our existing customer base.”