AmerCareRoyal (“ACR”)a supplier of disposable foodservice supplies, gloves and take-out packaging backed by HCI Equity Partners (“HCI”), announced the acquisition of Team Three Group (“Team Three”). Team Three is ACR’s eighth add-on acquisition since HCI’s initial investment. HCI is a leading lower middle market private equity firm that focuses on partnering with founder-owned distribution, manufacturing and B2B service companies. Financial terms were not disclosed.
Team Three is a provider of disposables for the foodservice and janitorial industries, with key product categories including towels, napkins and tissues, gloves, cutlery, takeout packaging and cups. St. Louis, Missouri-based Team Three offers advanced sourcing and shipping options, which combined with ACR’s national footprint of direct container service, creates a unique fulfillment model for customers. The acquisition also adds new complementary product categories, geographic expansion through new distribution centers in the Midwest and California and provides cross-selling and purchasing synergies. Bob Hubbard, who founded Team Three with his business partner Roy Van in 2011, is a well-respected industry veteran that has joined the ACR executive team as part of the transaction.
“We are thrilled that Team Three has joined ACR and have been impressed by Bob Hubbard’s stellar reputation in our industry,” says Scott Milberg, CEO of AmerCareRoyal. “His expertise will enable us to effectively expand into new markets and offer additional capabilities to our customers. We look forward to working alongside Bob and the entire Team Three team as part of the broader ACR organization.”
“ACR is a great example of HCI’s investment strategy of how we aggressively grow companies organically and through M&A,” saYS Doug McCormick, Managing Partner at HCI. “With the acquisition of Team Three, ACR’s sales revenue now exceeds the billion-dollar mark, and positions them as a leader in their market while also enabling expanded services, greater efficiencies, and a better value proposition for customers. We’re proud of Scott and the ACR team for achieving this impressive milestone.”
Greenberg Traurig served as legal counsel to ACR. R.L. Hulett acted as the financial advisor to Team Three and Lewis Rice served as legal counsel.