High Road Capital Partners Sells Portfolio Company General Tools & Instruments

Rhea-AI Summary

High Road Capital Partners announced the sale of GTI Holding Company, parent of General Tools, to Worthington Industries (NYSE: WOR) for $115 million. This transaction closed on January 29, 2021, marking the third exit for High Road Capital Partners Fund II. Under High Road's ownership since February 2014, General Tools nearly doubled its revenue and tripled its EBITDA. Notable acquisitions made during this period include PacTool International and Garden Weasel. The sale highlights High Road's strategy of elevating niche market companies to new heights.

Positive

• Sale of General Tools to Worthington Industries for $115 million indicates strong market interest.
• Revenue nearly doubled and EBITDA tripled during High Road's ownership.
• Successful acquisitions (PacTool and Garden Weasel) added valuable product lines and enhanced brand equity.

Negative

• None.

NEW YORK, Feb. 3, 2021 /PRNewswire/ -- High Road Capital Partners (www.highroadcap.com) announced the sale of its portfolio company GTI Holding Company, the parent company of General Tools and Instruments, LLC ("General Tools") (www.generaltools.com), to Worthington Industries, Inc. (NYSE: WOR), for $115,000,000.  The sale, which closed on January 29, 2021, marks the third exit for High Road Capital Partners Fund II.

Secaucus, NJ-based General Tools is a leading designer, developer, and marketer of feature-rich, specialized hand-held tools and instruments for DIY users, safety equipment users, tradesmen, and craftsmen.  General Tools' products are marketed primarily under the General®, PacTool®, Garden Weasel®, and Hawkeye™ brands, to leading home improvement retailers, online marketers, hardware retailers, and wholesale hardware and industrial distributors.

High Road acquired General Tools in February 2014. During High Road's ownership, General Tools completed the acquisitions of PacTool International, which brought a line of home repair and remodel tools into its portfolio, and Garden Weasel, which added premium lawn and garden tools with enduring brand equity.  Under High Road's ownership, revenue nearly doubled, and EBITDA nearly tripled.

"Our successful investment in General Tools is a perfect example of High Road's strategy to build lower-middle-market niche leaders into bigger and better companies in partnership with management," said Jeff Goodrich, a Partner at High Road Capital Partners. "General Tools' CEO Ralph Mallozzi built and led a topflight management team, strengthened General Tools' position in all channels, particularly online, inspired a culture of continuous product development, and seamlessly integrated acquisitions," Goodrich said.

Ralph Mallozzi, General Tools' CEO, said, "High Road was a true partner in General Tools' success, in every sense of the word.  High Road provided the guidance and support to help me and the team build a great business that is well-positioned for continued growth at Worthington Industries."

Mr. Goodrich led the investment for High Road and was assisted by Jerome Anderson, Operating Partner; Eojin Lee, Principal; and Austin Arnold, Associate. Lincoln International advised High Road and the company, and Jones Day provided legal counsel.

High Road Capital Partners has completed 63 transactions – 20 platform investments, 33 add-on acquisitions, and 10 exits – since its founding in 2007.

For further information, please contact Bob Fitzsimmons of High Road Capital Partners at (212) 554-3265.

High Road Capital Partners
High Road Capital Partners is a private equity firm focused on the smaller middle market. High Road was formed in 2007 and has raised over $470 million of committed capital since inception. High Road targets niche-leading companies with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. Post-acquisition, High Road works in partnership with management to take the companies to the next level through a combination of organic growth initiatives and add-on acquisitions. www.highroadcap.com

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SOURCE High Road Capital Partners

FAQ

What was the sale price of General Tools to Worthington Industries?

General Tools was sold for $115 million.

When did the sale of General Tools close?

The sale closed on January 29, 2021.

What company did High Road Capital Partners sell to Worthington Industries?

High Road Capital Partners sold GTI Holding Company, parent of General Tools.

What were the financial results for General Tools under High Road's ownership?

Under High Road's ownership, General Tools nearly doubled its revenue and tripled its EBITDA.

What acquisitions did General Tools make during High Road's ownership?

General Tools acquired PacTool International and Garden Weasel.