Class VI Partners (formerly CapitalValue Advisors “CVA”) is pleased to announce the recapitalization of RW Specialties, Inc. (“RW” or the “Company”), by Strength Capital Partners, LLC (“Strength” or “Strength Capital”). Class VI served as the exclusive financial advisor to RW Specialties.
“RW represents a true entrepreneurial and multi-generational family success story. With an established market presence as the leading two-step specialty building products distributors in the Mountain West region, a reputation for superior customer service and vendor relationships, and a history of innovation and strong leadership, we are confident they will continue to do great things in this next chapter of growth,” said Zack Gibson, Principal for Class VI. “It was an honor to represent RW, help the Pott family find a partner to support the next phase of growth, and play a small part in the Company’s tremendous 55+ year success story.”
RW is a customer-focused two-step distributor of specialty building products to building supply centers and lumber yards located throughout the Mountain West region of the United States. Since its founding in 1965 by Ron Pott, RW (https://rwspecialties.com/) has expanded from its headquarters in Denver, CO to additional facilities in Salt Lake City, UT, Casper, WY, and Grand Junction, CO. Following the recapitalization on January 31, 2020, the Pott family will maintain an ownership stake and the current management team, with an average tenure of over 25 years, will continue in their existing roles.
“I am very proud of our entire team and thankful for our employees and customers who helped build this business over the last 55 years, these are world-class people and made it a pleasure to come to work every day,” noted Rick Pott, who has managed RW for the last 30 years. “Class VI has been a terrific long-term partner to us. Throughout the process Zack and the team at Class VI always represented our interests well and worked tirelessly to close the deal. I would highly recommend them.”
The Company will continue to operate under the RW Specialties name, offering Fortress deck porch products, Dupont™ Tyvek weatherization products, as well as stair parts, hearth products, general building products, and other specialty parts and accessories. RW will continue to serve Colorado, Utah, and Wyoming, with the goal of increasing the Company’s geographic footprint into other high growth areas by leveraging its strong relationships with current vendors and homebuilders.
The acquisition by Strength Capital, a private investment company based in Birmingham, MI, demonstrates their ongoing commitment to invest in the distribution space.
The transaction closed on January 31, 2020. Davis Graham & Stubbs LLP served as legal counsel to RW, and Jaffe Raitt Heuer & Weiss served as legal counsel to Strength Capital. For more information about the transaction, please contact Class VI.
About Class VI Partners
Class VI provides middle-market investment banking services, including mergers and acquisitions advisory, corporate advisory, business valuation, and private capital raising services through its affiliate, Class VI Securities, LLC and Member FINRA. Class VI is also affiliated with and offers wealth management services through Class VI Family Office, LLC, a Registered Investment Advisor with the Securities & Exchange Commission.
Rick Pott, leader of RW Specialties, is a client of Class VI Partners and is not being compensated for sharing their opinion and experience with the firm. Any compensation creates a conflict of interest. Comments by Rick Pott may not be representative of any other person’s experience with the firm and are no guarantee of future performance or success.
Additional Disclosures
Investment advisory services offered through Class VI Partners’ affiliate Class VI Family Office, LLC, a Registered Investment Adviser with the U.S Securities and Exchange Commission. Class VI Partners offers investment banking and private securities transactions through its affiliate, Class VI Securities, LLC. Class VI Securities, LLC is a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA). Class VI Pathfinder, LLC provides general business consulting to privately held businesses. Collectively these entities are referred to herein as “Class VI”.
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