Daily News: January 31, 2012

PNC Business Credit, Others Provide Financing for Galls Merger

Galls, LLC, a full-service marketer and distributor of public safety, first responder and private security products, announced that it has merged with Cerritos, CA-based Quartermaster, Inc. Terms of the transaction were not disclosed. PNC Business Credit, AEA Mezzanine and PennantPark Investment Corporation provided financing for the transaction.

Galls was acquired by New York-based private equity firm CI Capital Partners in September 2011, as a platform investment in the public safety products market.

For over 37 years, Quartermaster has been a national multi-channel specialty distributor of public safety products. Its “head to toe” uniform and equipment solutions include duty gear, uniforms, casual duty and tactical apparel, footwear, and accessories. Quartermaster serves approximately 100,000 customers nationally ranging from private security, to federal, state and local law enforcement, to the U.S. military.

Bob San Julian, CEO of Galls said, “We are very excited to announce the merger of these two industry leaders. Quartermaster’s large customer base will benefit from Galls’ broad product offering, high level of customer service, and East Coast distribution capabilities. In turn, Quartermaster’s highly recognizable private label brand, long-standing relationships with key suppliers, and established West Coast distribution presence will be instrumental as we compete for customers in the public safety products sector.”

Jim Duncan, current CEO of Quartermaster, will become president of the combined company. Duncan commented, “Quartermaster has achieved tremendous success on its own since 1974. As we look toward our future growth, we realize that joining forces with Galls and forming a national distribution platform is the best means of serving our customers. Galls and Quartermaster share a commitment to the highest standards of quality and customer service, making Galls an ideal partner for us going forward.”

“When we closed the acquisition of Galls last fall, it was our goal to build and position this business for long-term growth and profitability, both organically and through strategic acquisitions,” said Thomas Ritchie, managing director at CI Capital Partners. “Quartermaster’s strong brand recognition, marketing capabilities, and experienced sales organization make it an exceptional combination with the Galls platform.”

Stephens Inc. acted as financial advisor to Quartermaster. Honigman Miller Schwartz and Cohn LLP provided legal counsel to Quartermaster and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to Galls.

CI Capital Partners is a North American private investment firm focused on building and expanding middle-market businesses.