Private investment firm Altamont Capital Partners announced that it has acquired certain assets of WAVE Electronics, Inc., a distributor of connected home, audio/video, and residential security products with nine branches across the U.S.
WAVE Electronics is a single-source solution provider with a long history in the custom electronics industry. The company was a member of the PowerHouse Alliance but broke off from that group. It was also among the first distributors to push into creating margin-laden house brands for various product categories. In 2018, WAVE was acquired by Kingswood Capital, the owners of AVAD, and the two distribution companies merged under the WAVE brand name. In 2019, the company closed several under-performing branches.
WAVE Electronics’ diverse offering provides multiple revenue channels and the flexibility to serve different types of customers. Altamont’s investment provides liquidity that will support WAVE’s existing capabilities and expand its inventory, creating an ample runway for continued growth.
WAVE Management Team Stays Intact
All of WAVE’s current U.S. locations were included as part of the transaction and are continuing to operate in the normal course. Additionally, WAVE’s senior management will continue to run the business, including CEO Mark Fukuda, VP of Sales Bryan Stewart, and VP of Purchasing & Merchandising Ainslie Fukuda.
“WAVE plays a critical role in the connected home and audio / visual supply chain, partnering with dozens of high-quality suppliers to provide value-add services and distribute products to a fragmented customer base,” says Randall Eason, a managing director at Altamont. “We are excited to be making this investment, and we are delighted to have the opportunity to partner with Mark and the rest of the team to fuel WAVE’s continued profitable growth. Together, we are confident that we will drive value for the business’ customers, employees, vendors and other stakeholders in the months and years to come.”
“This announcement is a testament to the dedication of our employees and the strength of our value proposition to our customers and suppliers,” says Mark Fukuda. “Altamont shares our commitment to delivering unrivaled support and superior service to our customers, while investing in and growing our team, and will be a true partner as we execute on our strategic objectives.”
“We look forward to working closely with the WAVE team to leverage its one-of-a-kind platform and implement an ambitious growth strategy, including a substantial investment in the business’s inventory. Longer term, given the significant growth opportunity, we will look to further enhance WAVE’s trajectory by potentially investing in footprint expansion and acquisitions,” adds Chase Beeler, a principal at Altamont.
Kirkland & Ellis served as legal counsel to Altamont on this transaction. McDonald Hopkins served as legal counsel and Jefferies acted as financial advisor to WAVE.
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with more than $2.5 billion of assets under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm’s principals have significant experience building business success stories across a range of industries, including business services, healthcare, consumer/retail, industrials, and financial services.