RICHMOND, VA / BALTIMORE, MD – July 24, 2019 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of Richmond Electric Supply Co., LLC (“RESCO” or the “Company”) to Locke Supply Co. (“Locke”), an employee-owned plumbing, electrical, and HVAC distributor located in Oklahoma City, OK. Prior to the sale, RESCO was owned by the Company’s management team and RTK Family Capital LLC (“RTK”), a family-owned investment firm headquartered in Richmond, VA.
Jeff Moore, Principal and Founder of RTK, noted, “We are thrilled with the outcome of this transaction and what it means for [RESCO CEO] Mike Bourn and his tremendous team. We’ve enjoyed our partnership with Mike over the past six-plus years and have the utmost confidence that RESCO’s employees and valued customers will yield significant benefits as a result of this transaction.” Regarding Matrix’s services, Mr. Moore added, “Matrix assisted RTK in acquiring RESCO in 2012 and we couldn’t be more pleased to have utilized their services again in this transaction. The team was extremely professional throughout the engagement and ensured that the ultimate outcome was beneficial for all constituents.”
Founded in 1983, RESCO is a full-line, stocking electrical wholesale distributor that serves commercial contractors, government and military agencies, residential contractors, and industrial and OEM markets on a regional and national scale. The Company has partnered with leading electrical industry manufacturers, such as General Electric (ABB), Siemens, EATON Cooper Power, 3M, and Leviton to provide its customers with the highest quality products available in the market. RESCO also represents several specialty product lines in the medium voltage space, including Kinney Manufacturing, Howard, S&C Electric, and TE Connectivity. RESCO is headquartered in Richmond, VA, with additional locations in Farmville, VA and Norfolk, VA.
RESCO was acquired in 2012 from retiring owner Darryl Harman by RTK and industry veteran Mike Bourn with the goal of building on the legacy Mr. Harman had established. With many of those growth objectives now realized, the ownership group engaged Matrix to serve as its exclusive financial advisor, which included valuation advisory, marketing the business to a select number of prospective buyers, and negotiation of the transaction. The transaction was led by David Shoulders, Managing Director and Head of Matrix’s Consumer & Industrial Products Group, William O’Flaherty, Vice President, and John Mosser, Analyst. Mr. Shoulders noted, “It is the ultimate compliment and sign of trust for our team to advise a business in multiple transactions. We take that trust and responsibility very seriously and are grateful to have represented Jeff, Mike, and the entire RESCO organization in this successful closing.”
Regarding the transaction, Mr. Bourn commented, “I have no doubt that RESCO’s partnership with the Locke team will be extremely beneficial for our valued customers, vendors, and employees. I look forward to continuing to grow our footprint in the Mid-Atlantic and Southeast with the support of the Locke organization. As this chapter of ownership closes, I am thankful to my partners at RTK for their commitment to the business over the past several years. I am also extremely grateful to the team at Matrix for their guidance throughout this critical process.”
John Orman III, President and CEO of Locke, added, “We are excited to welcome Mike and the entire RESCO team to our family of employees. Locke is committed to growing in every way possible and this addition provides all of us a tremendous opportunity. The growth potential is limitless, and we intend to take full advantage. We are thankful for the support of RTK and counsels on both sides for their support during this process.”
Graybill, Lansche & Vinzani, LLC served as legal counsel for RESCO and McAfee & Taft provided counsel to Locke.