#United States #home appliances #Ontario #Platinum Equity #R&B Wholesale

Platinum Equity Makes Strategic Investment in R&B Wholesale Distributors

In a significant move within the home appliance distribution landscape, Platinum Equity has announced its investment in R&B Wholesale Distributors, Inc., a prominent distributor headquartered in Ontario, California. The investment, disclosed on February 4, 2025, is expected to bolster R&B's operational capabilities and expand its market influence across the southwestern United States, including regions like California, Arizona, Nevada, and New Mexico.

A Legacy of Excellence in Distribution

Founded in 1968 by Bob Burggraf, R&B Wholesale Distributors has established itself as a key player in the supply of major home appliances. With a diverse and expansive product lineup, including kitchen and laundry items such as refrigerators, dishwashers, and washers, R&B caters to various market segments. The company primarily sells its products through dealer, builder, and property management channels, servicing multi-family homes, single-family residences, and light commercial establishments.

Bob Burggraf expressed pride in the company's legacy, highlighting the hard work of numerous employees who have contributed to its success. He stated, "Joining forces with Platinum will provide us with additional financial and operational tools, enabling us to continue to grow with both our valued customers and suppliers and to preserve our legacy for generations to come."

The Strategic Vision of Platinum Equity

Platinum Equity, co-founded by Tom Gores, is a global investment firm with a portfolio encompassing around 60 operating companies across various industries. The firm's strategy, known as Mergers, Acquisitions, and Operations (MAO), has allowed them to successfully integrate and enhance the operations of diverse businesses. With over 450 acquisitions completed in the last 29 years, Platinum Equity aims to leverage its operational expertise to maximize the potential of its acquisitions while respecting their founding cultures.

Jacob Kotzubei, Co-President of Platinum Equity, noted the impressive growth trajectory of R&B Wholesale Distributors. “RB has built an impressive, diversified business over the past 57 years with an opportunity to expand its reach and increase its scale,” he remarked. He further acknowledged the entrepreneurial spirit that continues to drive the company.

Looking Forward: Opportunities for Growth

The investment is being led by Platinum Equity's Small Cap team, focusing on enhancing R&B's go-to-market capabilities and leveraging technology for better operational efficiency. Dan Krasner, Managing Director at Platinum Equity, stated, “We believe that further investing in the company’s go-to-market capabilities, technology, and footprint will position us well for continued success.”

The strategic partnership is expected to spur organic growth alongside prospective mergers and acquisitions (M&A) initiatives, paving the way for R&B to expand its market presence significantly.

As part of the agreement, the Burggraf family will maintain a minority ownership stake in R&B, with existing executives Connie Espina and Chris Burggraf continuing to lead the company. Their ongoing leadership ensures that the company’s legacy and culture remain intact while navigating the future with the backing of Platinum Equity's extensive resources.

This investment not only signifies Platinum Equity's commitment to furthering R&B's business ambitions but also underscores the growing demand for home appliances, particularly amid expanding residential developments and evolving consumer preferences in the post-pandemic landscape.

In conclusion, as R&B steps into this new chapter with financial and operational backing from Platinum Equity, the focus will be on enhancing service quality to customers and maintaining robust relationships with suppliers. The future looks promising for R&B Wholesale Distributors as they leverage new opportunities for growth and innovation in the home appliance sector.