Tecum Capital Partners has invested in The Helpful Hardware Co., an Ace Hardware franchisee. Tecum provided subordinated debt and equity to support Maryland-based JPB Partners’ acquisition. HHC is poised for continued growth given management’s deep experience and proven strategy in acquiring and continuously enhancing locations.
Existing CEO Darin Workman will remain with the company and retain a minority stake. The financial terms of the transaction were not disclosed.
Founded in 2014, HHC operates a chain of eight Ace Hardware locations throughout the Southeast and is headquartered in Midway, Georgia. The former owners, The Capstan Fund, partnered with Workman in acquiring locations in distressed situations. Workman leveraged his 25-plus years of experience at Ace Hardware to implement operational discipline and return these stores to profitability and growth.
Due to the cooperative structure, each owner of an Ace Hardware store operates independently with the cooperative providing high-level guidance and buying power to reduce inventory costs. Unlike a typical franchisor, each Ace Hardware store owner has the ability to match the needs of their respective markets by fine-tuning the store’s inventory and expertise to support the neighborhood’s demographic.
The deal team from Tecum consisted of Matt Harnett, Mike Williamson, Paul Oris and Ian Frazier.
Tecum is an independent investment firm based in Pittsburgh, with over $750 million in assets under management. The multi-strategy investor is currently investing out of its second SBIC Fund.
Since 2006, Tecum has invested in over 80 platform and add-on acquisitions. The firm specializes in growth-oriented, middle market companies across the broader high-value manufacturing, value-added distribution and business service sectors, with a focus on businesses with EBITDA greater than $2 million.