Bill Korowitz, CEO of Top 40 supplier The Magnet Group (asi/68507) announced this week that he and his business partners have formed TMG Capital. The equity firm, which is the sole owner of The Magnet Group, has formed exclusive joint ventures in the past year with The 1919 Candy Company and Castelli North America.
Ultimately, the goal of creating TMG Capital is to capitalize on further acquisition opportunities that Korowitz believes are available in the market today. “We see a lot of suppliers in the industry right now that we think could benefit from additional capital or partnerships,” Korowitz told Counselor in an exclusive interview yesterday. “We formed the capital company so we can more easily close on mergers and acquisitions moving forward.”
Korowitz said that TMG Capital will be focused on deals with suppliers in the promotional products space. “We’ll be looking at supplier firms that have the traditional business model; we’re not interested in becoming distributors at all,” he said. “There are a lot of suppliers in the $2 million to $10 million range that would be perfect add-ons to what we already have under the TMG Capital umbrella.”
TMG Capital is expecting to complete at least a few deals with suppliers in the coming year. “The opportunity to do two to three mergers or acquisitions this year is pretty reasonable,” Korowitz said. “We’ve already identified some specific targets, and we’ll be moving forward with others as the year goes on.”