Leading Pellet Grill Company, recteq, Expands Consumer Products Portfolio at Norwest Equity Partners
February 01, 2021
- Innovative products with the highest standards of quality combined with exceptional customer service
- recteq augments NEP’s existing family of outdoor and active lifestyle-focused portfolio companies
- Selling exclusively direct-to-consumer, recteq has an authentic brand and loyal customer base
Minneapolis, MN and West Palm Beach, FL, February 1, 2021 – Norwest Equity Partners (“NEP”), a leading middle market investment firm founded in 1961, has made a significant investment in recteq (or the “Company”), a designer, marketer, and direct seller of premium pellet grills, accessories, and other consumable products. The transaction closed on January 29, 2021; financial terms of the transaction were not disclosed.
Co-founded in 2009 by Ron Cundy and Ray Carnes, recteq prides itself on creating superior products and providing best-in-class customer experience. Continued technology-driven product innovation, a direct-to-consumer (D2C) distribution model, long-standing supplier relationships, and top-notch customer service, collectively position recteq as a premium brand in the pellet grill space. recteq’s authentic, influential brand also contributes to customer passion and loyalty for all its product offerings. recteq customers are the Company’s best advocates and help drive organic product awareness.
Sundip Murthy, NEP Partner, stated, “recteq is another great addition to our consumer products portfolio. The NEP team has tremendous ability to work with high-growth, founder-owned businesses and we are excited about our partnership with Ron, Ray and the rest of their management team. They’ve built an outstanding lifestyle brand with a culture of innovation that is well positioned for continued growth.”
Cundy, shared, “We’ve been fortunate to experience strong industry tailwinds and increased brand awareness which have led to continued strong revenue growth. We feel really grounded with a solid foundation for growth in 2021, and beyond, and are excited to partner with NEP to support our growth objectives.”
“The precise delivery of temperature and control provided by recteq grills offers an unparalleled grilling experience. As pellet grills continue to take a greater share of the grill market, recteq has multiple areas to grow and win with further product, channel, and geographic extensions. The Company’s suite of products has a reputation and loyalty that is unsurpassed in the entire grill market,” shared Tony Armand, NEP Partner.
With offices in Minneapolis and West Palm Beach, NEP has been investing in growing, profitable, and scalable middle market companies since 1961. NEP has deep experience working with digitally disruptive founder-owned businesses, including Wahoo Fitness, GoHealth, Arteriors and Integrative Nutrition. The firm opened a second office in Florida in October 2019 to focus on investment opportunities within the strong middle market community in the southeastern region. recteq is headquartered in Augusta, GA, and is a well-regarded employer in the area.
“There is a great culture fit and alignment between the recteq and NEP teams. We are confident that the combination of NEP’s capital and extensive resources as well as a partnership approach will help take us to the next level,” Carnes stated.
Jefferies LLC advised recteq on the transaction; Winston & Strawn, LLP was legal advisor to NEP; PennantPark and First Midwest Bank provided debt financing; and Norwest Mezzanine Partners and Yukon Partners provided subordinated debt financing.