Platinum Equity announced it has signed a definitive agreement to invest in Grand Appliance, a Midwest retailer and distributor of appliances and consumer electronics.
Founded in 1930, Grand Appliance is a fourth-generation family-owned business with 31 retail locations and five distribution centers across Wisconsin, Illinois, Indiana, and Iowa. The company serves customers across retail, builder, contractor, and e-commerce channels.
The company’s founders will remain shareholders in the business. Terms of the transaction were not disclosed, and the deal is expected to close later this month.
In connection with the investment, Grand Appliance has entered into a strategic partnership with R&B Wholesale Distributors, a West Coast-based appliance distributor that Platinum Equity invested in last year.
The combination brings together two complementary appliance distribution businesses with established regional footprints and delivery and installation capabilities. The companies are expected to share knowledge and best practices while preserving the unique identities and operating models that have made each business successful.
Grand Appliance will continue operating under its existing brand and leadership team. President Anish Gauri will become Chief Executive Officer of both Grand Appliance and R&B.
The partnership is expected to create opportunities to invest in growth, expand capabilities, and improve service levels across retail, builder, contractor, and e-commerce channels.
Mesirow Investment Banking served as exclusive financial advisor to Grand Appliance, and Taft served as the company’s legal counsel. Massumi + Consoli served as legal counsel to Platinum Equity.
KEY QUOTES:
“This partnership brings together two highly respected family businesses with deep legacies and distinct strengths to create one of the largest independent appliance distribution platforms in the country. By building on a shared foundation, we see an opportunity to support continued growth while preserving the values that have defined each company.”
Jacob Kotzubei, Co-President of Platinum Equity
“Grand has built an impressive omnichannel platform, with a leading showroom model, growing e-commerce platform, and reputation for customer service that dates back nearly 100 years. We see meaningful opportunities for expansion going forward.”
Dan Krasner, Managing Director at Platinum Equity
“Today marks an exciting new chapter for Grand Appliance. This partnership allows us to invest in the future of our business while staying true to the values and culture that have defined Grand for generations. We are excited about the opportunities to expand our capabilities while continuing to deliver on our commitments to our valued customers, employees, and supplier partners.”
Anish Gauri, President of Grand Appliance
