Cortec Group Announces the Acquisition of BarcodesInc
Cortec Group, a New York based private equity firm which invests in middle-market distribution, healthcare, consumer, and specialty products and service businesses, announced that on November 2, 2012 its affiliate, Cortec Group Fund V, L.P. , acquired Barcodes Inc in partnership with management. Terms of the transaction were not disclosed.
Headquartered in Chicago, Illinois, Barcodes is a leading distributor of automatic identification capture (“AIDC”) products, selling primarily to small and medium-sized businesses and select Fortune 500 customers. The Company’s AIDC products, which include barcode scanners, mobile computers, label printers, point-of-sale systems, identification cards, RFID equipment, and other related consumable products, allow customers to improve productivity and profitability in their businesses. Barcodes maintains strong relationships with many of the premier manufacturers in the industry, and effectively couples a strong web-site presence with technical sales capabilities to serve its customers.
“Through its unique business model, online lead generation capabilities and value-added customer service, Barcodes is a leader in its market and continues to gain share versus the competition,” said Scott Schafler, a Managing Partner at Cortec. “The Company’s deep product knowledge and efficient operations have enabled it to build long-term relationships with a diverse group of customers, which has driven the Company’s success,” added Michael Najjar, a Cortec Partner.
“We are gratified that senior management chose to work with Cortec to realize their near and longer-term objectives,” added David Schnadig, also a Managing Partner at Cortec. “We are thrilled to be partnering with a great team and excited to help facilitate and execute multiple growth initiatives.”
Daniel Nettesheim, Barcodes’ CEO, who will continue in his current position and remain a shareholder, added, “We were impressed by Cortec’s approach, including their demonstrated commitment to growth. We are genuinely enthusiastic about this new partnership, both as senior managers of the Company and continuing owners in the business.”
The Barcodes acquisition represents Cortec Fund V’s third platform investment. Cortec Fund V had its final closing in 2011 with $620 million in total committed capital.
