Deal Type
Sell-side transaction

Deal Team
Chris Rowe, Andrew Ball

Company Overview
Harrisburg, Pennsylvania based Ad-Tech CCI, Inc. (Ad-Tech) has been in business since 1986. Serving manufacturers throughout the Mid-Atlantic region, the company distributes industrial controls, automation components, and identification products. Product lines include circuit breakers, contactors, PLCs and I/O devices, power supplies, relays, sensors and terminal blocks, along with custom labels and terminal markers, and din rail assembly. Over the years, Ad-Tech has earned a reputation for excellent customer service and serves numerous long-standing clients such as Honeywell, Schneider Electric, Tyco and Johnson-Controls. 

Situation
Co-owner Rex Rothrock was ready to retire, while co-owner James (Jim) Kiessling planned to continue working at the company that the duo built over four decades. As they pursued a transition plan for the next stage of the business, they were referred to FourBridges by a key referral partner. 

Process
FourBridges sat down with Rex and Jim to discuss their respective goals for the sale. Both partners sought liquidity, and were looking for an opportunity that allowed Rex to fully step away from the business. It was also imperative to find Jim a partner that could help Ad-Tech grow while preserving the company’s culture and continuing to provide exceptional customer service to its long-standing customers. FourBridges ran a full sell-side process and contacted a diverse mix of buyers that included private equity backed strategics, strategics, private equity firms and family offices. 

Challenge
Ad-Tech was built on strong, long-standing relationships with the manufacturers on its line card. While this was a core strength, it also limited the number of potential buyers — some of whom already represented competing manufacturers, which could potentially introduce conflicts.

FourBridges was also challenged with ensuring the transaction worked for both owners. While Rex was ready for a full exit, Jim planned to stay on and help transition Ad-Tech to its next phase of growth. Finding the right partner meant meeting both goals while also ensuring the buyer brought complementary rather than competing product lines, preserved the company’s culture, and maintained the high level of service its customers had come to expect.

Results
FourBridges found Galco to be a strong strategic fit for Ad-Tech while meeting the goals and objectives of both shareholders. The partnership between Galco and Ad-Tech benefits everyone from its employees and shareholders to the company’s customers and suppliers. Ad-Tech will be able to leverage Galco’s strong e-commerce capabilities, engineering and technical support, and expanded suite of product and service offerings. The acquisition also strengthens Galco’s presence in the Mid-Atlantic region and creates cross-selling opportunities across the company’s product and service offerings.