Sole Source Capital LLC, an industrial-focused private equity firm, announced today the acquisition of Peak-Ryzex from Keystone Capital and Optical Phusion Inc. (“OPI”) from its founders, two leading providers of automatic identification, data capture (“AIDC”) and factory automation solutions. The companies will be merged and led by Peak-Ryzex CEO Juliann Larimer, CFO Michele Adams and OPI President Tony Rivers. Terms of the transactions were not disclosed.
The combination will yield significant technological and operational synergies as well as deliver enhanced cross-selling opportunities to a broad set of clients ranging from small and medium sized businesses to Fortune 500 companies—all seeking supply-chain logistical support. Peak Ryzex’s position will be further enhanced by OPI’s self-service kiosk, enterprise mobility and wireless technology integration expertise, which allows its clients to fulfill and finalize transactions more quickly and easily.
These transactions mark Sole Source’s 5th and 6th investments in the AIDC space, following the purchase of Supply Chain Services and add-on investments after the acquisition of Dasco Label, Miles Data and Coridian.
“These two acquisitions are a natural fit with our investment thesis, as we are a thematically-driven firm and automation is a strong area of focus. The AIDC market is both highly fragmented and has strong industry tailwinds,” said David Fredston, Founder and Managing Partner of Sole Source Capital. “We are confident in the cultural fit between Peak-Ryzex and OPI, and we are excited to pool our collective resources in the pursuit of building a larger, forward-thinking business to grow with the increased digitization of the supply chain.”
“This investment is a testament to the hard work of the Peak-Ryzex team and demonstrates the high growth potential of our product offering,” said Ms. Larimer, CEO of Peak-Ryzex. “We look forward to partnering with Sole Source and OPI to continue growing, both organically and through strategic acquisitions, by delivering best-in-class, digital supply chain and mobile workforce solutions to our customers.”
“Our entire team is looking forward to working with Sole Source Capital and the Peak-Ryzex team to deliver an expanded breadth of products and services to our customers,” Mr. Rivers, President, OPI, added.
Founded in 1981, Peak-Ryzex delivers innovative automated data collection solutions to Fortune 500 customers along with small and medium-sized businesses, providing critical technology that allows businesses to become more efficient and responsive. The Company is a premier value-added reseller (“VAR”) of barcoding, data collection, and factory automation equipment, delivering innovative digital supply chain and mobile workforce solutions across North America and Europe. The Company provides knowledgeable sales and information technology expertise to customers purchasing AIDC equipment across multiple end markets including food processing/distribution, grocery, healthcare, e-commerce, industrial and manufacturing, among others. Peak is headquartered in Columbia, MD and has seven locations in the US and two in the U.K.
Established in 2004, OPI is a founder-owned solution provider of AIDC hardware equipment and software solutions primarily to the grocery, pharmacy and retail end markets. OPI specializes in helping customers solve business challenges and manage the entire lifecycle of supply chain solutions such as e-commerce, click and collect, interactive kiosk, personal shopping solutions, RFID, mobility, and wireless technology projects. OPI is headquartered in Littleton, MA.
Stifel served as the exclusive financial advisor to Peak-Ryzex and Principals of Charter Capital Partners served as the exclusive financial advisor to Optical Phusion Inc.
About Sole Source Capital
Founded in 2016, Sole Source Capital is a private equity firm that thematically invests in fragmented, high-growth industrial subsectors. Sole Source seeks founder-owned businesses or corporate carve-outs that will benefit from the team’s operating and M&A capabilities. The Firm has a strong operating heritage that enables it to execute a buy and build strategy with significant downside protection. The Firm is headquartered in Santa Monica, California. For more information, please visit www.solesourcecapital.com or contact email@example.com.
Headquartered in Columbia, Maryland, Peak-Ryzex is a North American value-added reseller of barcoding and data collection solutions. With over 35 years of supply chain, field mobility and retail services expertise, Peak-Ryzex has an insider’s perspective of the market; its origins, participants, and dynamic forces of change. With extensive application experience across industry segments, Peak-Ryzex is able to provide objective consultancy on business processes, software, hardware, as well as turn-key solutions for equipment repair, life cycle support, technology, vertical/application and business services. For more information, please visit www.peak-ryzex.com.
About Optical Phusion Inc.
Headquartered in Littleton, Massachusetts, Optical Phusion, Inc. (OPI) is a self-service kiosk, enterprise mobility and wireless technology integration solutions company that helps customers manage the entire lifecycle of kiosk and wireless technology projects with application-driven solutions for a range of markets specializing in retail, logistics and field sales organizations. Its mobile device management solution supports a broad range of kiosk and enterprise mobile assets. OPI has implemented a variety of Kiosk systems for promotional video presentation, coupon printing, loyalty registration and price verification. OPI’s creative kiosk designs, quality manufacturing and experience with critical components deliver responsive solutions, reduced total cost of ownership (TCO) and greater return on investment (ROI). For more information, please visit www.opticalphusion.com.
Bill Mendel, (212) 397-1030
Richard Brenner, (212) 397-1030