HCAP exits Protect Plus Air

HCAP Partners said Oct. 17 that it has exited Protect Plus Air Holdings LLC (PPAH). Financial terms weren’t announced. PPAH makes and distributes residential filters used in air conditioners and heating units. In September, HKW said it had recapitalized PPAH.


San Diego, CA (October 17, 2017) – HCAP Partners, a California-based mezzanine debt and private equity firm and recognized impact investor, announced today the recapitalization of Protect Plus Air Holdings, LLC (“PPAH”), a leading manufacturer and distributor of residential air filtration products and accessories in the US. Terms of the transaction were not disclosed.

PPAH manufactures and distributes residential filters used in air conditioners and heating units. The company is one of the largest residential air filtration companies in the US and represents a diverse portfolio of air filtration-related products and brands, including Arm & Hammer®, Dupont®, Purafilter 2000® and True Blue®. PPAH employs approximately 900 in the US and serves in excess of 45,000 retail doors in 48 states.

HCAP Partners began its relationship with PPAH in 2004 when it invested in a predecessor entity called Purafilter 2000, which at the time was generating approximately $5 million in annual revenues. HCAP Partners has been working with the Lackey Group since 2008, when the Lackey Group and HCAP Partners’ first fund bought the controlling interest in Purafilter 2000 and embarked on a successful turnaround of the struggling company. Since 2008, PPAH has merged with and acquired four other air filter companies and HCAP Partners has been a supportive partner in each step of its growth.

The Lackey Group was started as a product development consulting firm 40 years ago by Robert Lackey Sr. Today, the group consists of 20+ businesses that are owned primarily by Robert Lackey and his son Robb Lackey. The portfolio of companies are focused on consumer product sectors such as air and water filtration, employing around 1,000 people across the nation. The Lackeys attribute the Company’s success in large part to the talented senior management group, a strong corporate culture with well-defined values, a dedicated staff of employees, as well as its strong alliances with its key financial partners.

“HCAP’s support and advice have been instrumental to the success of PPAH and its employees over the years,” stated Robb Lackey, CEO of PPAH. “We have been especially impressed by their fair and open approach to structuring the funding arrangements, as well as their desire to be involved when needed to help our business grow with both the proper financial tools and business insights. We have a tremendous amount of respect and trust in the HCAP team and the relationship that we have built over the years.”

Morgan Miller, HCAP Managing Partner and Board member for PPAH, commented, “We have been pleased to be a part of the Lackey team for over thirteen years during which time HCAP financed several phases of their growth. They are a well-run, highly successful group as evidenced by growing the company both organically and through acquisitions. The team worked hard and was quite effective creating efficiencies from their acquisitions.”

The VSTH Group, LLC of Charlotte, NC led by Patrick Heinrich acted as advisor to the Lackey Group on this transaction.

About HCAP Partners

HCAP Partners was founded in 2000 and is a provider of mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $2 million to $9 million in established businesses generating between $10 million and $75 million in revenues in the healthcare, software, services, and manufacturing industries. HCAP Partners has invested in over 60 companies since it was founded and through ongoing, active engagement with portfolio companies the team at HCAP Partners provides value-added resources to help optimize performance and increase enterprise value. The firm has been recognized as an ImpactAssets 50 fund four years running and, through its Gainful Jobs Approach, works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement. Partners Tim Bubnack, Morgan Miller, Frank Mora, and Principals Hope Mago and Nicolas Lopez lead HCAP Partners’ investment team. For more information, please visit www.hcapllc.com or call (858) 259-7654.

Source: https://www.pehub.com/2017/10/hcap-exits/

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