McNally Capital, a private equity firm that invests in founder- and management-owned businesses, has announced the sale of its portfolio company, The Re-Sourcing Group, to MidOcean Partners.
The Re-Sourcing Group is a leading provider of strategic staffing, consulting, and direct hire solutions for various industries, serving clients through seven premium brands.
McNally Capital partnered with Re-Sourcing in 2019, with the support of industry partner Jeff Bowling, founder and former CEO of The Delta Companies. McNally Capital helped Re-Sourcing grow its revenue by approximately 100% in two years, through both organic growth and three acquisitions. Re-Sourcing now employs more than 200 team members across ten markets in the U.S.
The transaction was advised by Houlihan Lokey and Ropes & Gray LLP, and financed by Tree Line Capital Partners and Boathouse Capital. McNally Capital continues to invest in lower middle-market businesses with $5 million to $20 million in EBITDA, focusing on the Aerospace & Defense/National Security, Industrial Products & Services, and Business Services sectors.
“Re-Sourcing has established a strong reputation as a staffing industry leader. Under McNally Capital’s ownership and my partners’ efforts, we have achieved rapid organic growth and significant scale, particularly through our acquisitions of Conexus Recruiting and Logis CFO. Both highly reputable West Coast brands, these acquisitions further expanded our geographic reach and service offering for our clients, made possible through a strong balance sheet, our lenders’ support, and McNally Capital,” stated Joe Kelly, Managing Partner of Re-Sourcing.
Adam Lerner, Partner of McNally Capital, said, “We are proud to have built upon Re-Sourcing’s impressive history of growth and created value for our investors. Our firm’s thesis-driven investment philosophy and proprietary value creation framework enabled us to execute on unique acquisition opportunities and accelerate growth for the Company and its shareholders”.