Valesco Industries Invests in AAA Distributor, Inc.


Jun 23, 2021

On June 17, 2021, Valesco closed its tenth platform investment out of Valesco Fund II.  The transaction was a majority buyout of AAA Distributor, Inc. (“AAA”) – a distributor, wholesaler, and retailer of kitchen, bathroom and flooring home improvement and remodeling products serving the Northeast region from its headquarters in Philadelphia.  

AAA designs and imports its own trademarked product line, LessCare, which includes cabinetry, vanities, bath furnishings, plumbing supplies, flooring, and fixtures. From proprietary product design to the retail point of sale, AAA controls the entire value chain, capturing additional margin and allowing for a far superior product at a competitive price. AAA also serves as a specialty dealer of other products and brands, like granite countertops and branded cabinetry, buying at wholesale pricing and selling into its retail client base. The company’s showroom sales are driven by knowledgeable sales consultants with extensive remodeling and design expertise, providing customers with a one-stop-shop for any kitchen or bath renovation.  

Valesco’s investment supports a control recapitalization of the existing ownership group and will support the continued growth of AAA’s business in the Philadelphia market as well as expansion into new markets across the United States. Co-investors on the opportunity include AAA management and Brookside Capital Partners.  Senior debt was provided by a Bank who is an investor in Valesco Fund II.   

Valesco continues to seek investment opportunities to provide equity and subordinated debt for control buyout, recapitalization, minority, management buyout and mezzanine situations from Valesco Fund II. AAA is a great example of relationship, partnership and creativity to find the best possible outcome for the business, the founding shareholders and Valesco. The company is poised for continued success and we could not be more excited to add AAA to our growing portfolio. 

About Valesco

Valesco is a Dallas, Texas based private equity firm that focuses on making control and non-control investments in select growth-oriented small- and lower- middle-market businesses engaged in manufacturing, distribution and business-to-business services. Valesco specializes in partnering with a company’s management team to support its growth objectives. As long-term industry veterans, the principals have capitalized and built numerous successful businesses, serving those companies in varying roles as investors, managers, advisors and directors.

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