Key Takeaways
- • MCM Capital Partners sold portfolio company Torsion Group Corp (TGC), a vertically integrated garage door parts and accessories manufacturer and distributor, to Kaulig Capital in a transaction announced March 10, 2022.
- • During MCM's six-year ownership (2016–2022), TGC achieved substantial growth metrics: revenues increased 115% and EBITDA grew 280%, while employee headcount more than doubled.
- • MCM's investment thesis focused on capitalizing on home renovation and remodel market tailwinds through direct sourcing of fragmented family-owned businesses; TGC was initially a fragmented operation with standalone subsidiaries operating independently.
- • TGC underwent significant operational transformation under MCM's stewardship, expanding manufacturing footprint from 5,000 square feet to 60,000 square feet across three facility upgrades, and relocating headquarters to a modern 70,000 square foot facility to support vertical integration strategy.
- • The transaction generated an attractive outcome for MCM, its shareholders, and the TGC management team, though specific valuation or return figures were not disclosed in the announcement.
Summary
MCM Capital Partners, a lower middle market private equity fund, completed the sale of Torsion Group Corp to Kaulig Capital, marking the exit of a six-year investment that demonstrated substantial value creation in the garage door components sector. The announcement, made March 10, 2022, highlighted the successful execution of MCM's direct sourcing strategy targeting businesses positioned to benefit from residential renovation and remodeling market expansion.
MCM's initial acquisition of TGC in 2016 identified a fragmented family of independently operated companies that collectively possessed best-in-class fulfillment capabilities, differentiated product offerings, and exposure to a growing, fragmented market. The investment paired MCM's capital and operational expertise with incumbent CEO and minority shareholder Marc Calcaterra, creating a partnership structured around a shared strategic vision for consolidation and growth acceleration.
The operational results of the partnership underscore the value-creation playbook executed by MCM and the TGC management team. Over the six-year holding period, TGC grew revenues by 115% and EBITDA by 280%—a significant multiple expansion that reflects both organic growth and operational leverage. Employee headcount more than doubled, indicating substantial business expansion and organizational development. Bobby Kingsbury, Managing Director at MCM Capital, attributed these results to dedicated investment in people, facilities, processes, and systems.
Physical infrastructure expansion mirrored the revenue and profitability growth trajectory. TGC upgraded and expanded its manufacturing footprint three times, growing from an initial 5,000 square feet to 60,000 square feet, supporting the company's vertical integration strategy. The company simultaneously relocated its headquarters to a modern 70,000 square foot facility, reflecting the scale and maturity achieved during the investment period. These capital investments enabled TGC to consolidate previously fragmented operations and enhance operational efficiency.
The sale to Kaulig Capital concludes a disciplined exit for MCM and its investors at a point of operational maturity, with the business positioned as a scaled, integrated manufacturer with strong management infrastructure and market positioning within the garage door components and distribution sector.
MCM's initial acquisition of TGC in 2016 identified a fragmented family of independently operated companies that collectively possessed best-in-class fulfillment capabilities, differentiated product offerings, and exposure to a growing, fragmented market. The investment paired MCM's capital and operational expertise with incumbent CEO and minority shareholder Marc Calcaterra, creating a partnership structured around a shared strategic vision for consolidation and growth acceleration.
The operational results of the partnership underscore the value-creation playbook executed by MCM and the TGC management team. Over the six-year holding period, TGC grew revenues by 115% and EBITDA by 280%—a significant multiple expansion that reflects both organic growth and operational leverage. Employee headcount more than doubled, indicating substantial business expansion and organizational development. Bobby Kingsbury, Managing Director at MCM Capital, attributed these results to dedicated investment in people, facilities, processes, and systems.
Physical infrastructure expansion mirrored the revenue and profitability growth trajectory. TGC upgraded and expanded its manufacturing footprint three times, growing from an initial 5,000 square feet to 60,000 square feet, supporting the company's vertical integration strategy. The company simultaneously relocated its headquarters to a modern 70,000 square foot facility, reflecting the scale and maturity achieved during the investment period. These capital investments enabled TGC to consolidate previously fragmented operations and enhance operational efficiency.
The sale to Kaulig Capital concludes a disciplined exit for MCM and its investors at a point of operational maturity, with the business positioned as a scaled, integrated manufacturer with strong management infrastructure and market positioning within the garage door components and distribution sector.
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