LONGMONT, Colo. -- Case Logic, one of the leading storage accessories manufacturers, has been sold by its Dutch parent, Hagemeyer N.V., to KRG Capital Partners L.L.C., a private equity investment firm, in partnership with Case Logic management.
No price for the sale was released, but the deal is expected to be completed by the end of July, following regulatory approvals.
The transaction was not unexpected, since Hagemeyer had announced last January that it was seeking to sell Case Logic, along with two other subsidiaries, since the three no longer fit its core strategy of focusing on business-to-business distribution.
Case Logic, which was founded in Boulder, Colo., in 1984, said all of its operations will remain at current locations, which include bases in Hong Kong and Brussels, Belgium. The company said plans to expand its U.S. facility here will be finalized shortly.
According to Mark King, managing director of KRG, Case Logic's senior management team is investing in the purchase of the company, and will be a "significant owner, financially involved" in the transaction.
Case Logic, which makes lifestyle-oriented organizational storage accessories for the audio, computer, photo/video, DVD and automotive markets, was purchased by Hagemeyer about 10 years ago.
Hagemeyer, a business to business electrical distribution and services group based in Naarden, The Netherlands, earlier this year sold its two other companies in business- to-consumer markets -- A.R.M.-Stokvis automotive and lifestyle firm Pollyconcept. These two, along with Case Logic, have combined annual sales of $665 million, and divestiture of the three generated more than $475 million for Hagemeyer, said the company.
KRG, which specializes in acquiring controlling interests in companies and growing them into larger enterprises through a combination of add-on acquisitions and internal growth, seeks to form strong partnerships with management and employees, said CaseLogic.
"We expect our partnership with KRG Capital Partners, combined with our passion for providing outstanding products and services to customers and consumers throughout the world, will lead to significant growth in the years to come," said Peter Storz, president of Case Logic.
Case Logic started with two audio cassette storage cases 16 years ago, and, spurred in part by the success of the compact disc, expanding rapidly in audio storage. Today, it offers nearly 200 models of home and portable storage, including the original cassette and CD cases, along with CD wallets and player cases, DVD cases, video game cases, automotive storage and digital camera and camcorder cases.
The company employs about 180 people at its 156,000-square-foot facility here, along with overseeing production, sales and marketing in the Asia-Pacific region and sales, marketing and distribution to Europe, Africa and the Middle East. It also has a separate division called Case Connect, formed in 1997, which focuses on the OEM market.