#USA #Los Angeles #Platinum Equity #Grand Appliance #RB Wholesale

Platinum Equity's New Venture with Grand Appliance

In a significant move aimed at bolstering its portfolio, Platinum Equity has confirmed a definitive agreement to invest in Grand Appliance, a prominent retailer and distributor of appliances and consumer electronics in the Midwest. Founded in 1930, Grand Appliance stands as a fourth-generation family-owned business, recognized for its commitment to service and operational excellence.

With operations spanning 31 retail locations and five distribution centers across Wisconsin, Illinois, Indiana, and Iowa, Grand serves a varied customer base that includes retail, builders, contractors, and e-commerce sectors. The investment, expected to finalize later in July, involves an undisclosed transaction value, allowing the founding members of Grand to continue as shareholders.

Strategic Alliance with RB Wholesale Distributors

As part of this investment, Grand Appliance will also forge a strategic partnership with RB Wholesale Distributors, an established West Coast appliance distributor that received investment from Platinum Equity the previous year. This collaboration combines their respective strengths, establishing a more comprehensive delivery and installation capability across their regions. By leveraging each other's expertise, both companies aim to amplify service levels across various channels while maintaining their unique operational models that have contributed to their successes thus far.

Anish Gauri, the President of Grand Appliance, will take on the additional role of Chief Executive Officer, leading both Grand Appliance and RB in this new venture. Gauri expressed his enthusiasm, emphasizing how this partnership not only allows for investment in the company's future but also aligns with the values and culture that Grand has upheld for generations.

A Vision for Growth

Platinum Equity Co-President Jacob Kotzubei highlighted the partnership as a union of two distinguished family businesses, emphasizing the legacy and strengths they bring together. "This partnership brings together two highly respected family businesses with deep legacies and distinct strengths to create one of the largest independent appliance distribution platforms in the country," Kotzubei stated. He also pointed to the shared foundation that will support continued growth, maintaining the essential values that have defined each entity.

Dan Krasner, a Managing Director at Platinum Equity, recognized the formidable omnichannel platform established by Grand, citing its successful showroom model and growing e-commerce platform. He sees ample opportunities for expanding the business moving forward, entrusting Gauri and his team to lead that charge.

This partnership marks a new chapter in Grand Appliance's story, positioning it well for future growth while maintaining its commitment to exemplary customer service. The investment from Platinum Equity signals confidence in Grand's business making capability, aiming to enhance offerings and deepen relationships with its customer base, employees, and supplier partners.

Mesirow Investment Banking served as the exclusive financial advisor to Grand on this transaction, providing critical guidance and support as the company transitions into this exciting new phase. Additionally, Taft offered legal counsel for Grand Appliance, while Massumi + Consoli did the same for Platinum Equity.

About Platinum Equity

Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm managing over $48 billion in assets and overseeing around 60 operating companies across a broad range of markets. Renowned for its expertise in mergers and acquisitions, Platinum Equity focuses on creating value in its acquisitions through operational improvements and enhanced strategic direction. With more than 550 completed acquisitions over the past 30 years, the firm continues to expand its influence in various sectors.

As Grand Appliance embarks on this journey of growth and collaboration, both companies are poised to redefine the landscape of appliance distribution while staying true to their foundational values. Their shared vision and mutual respect pave the way for an exciting future in the industry.