Chicago, IL – January 17, 2024
McNally Capital (“McNally”), a private equity firm, is pleased to announce the sale of The Re-Sourcing Group (“Re-Sourcing” or the “Company”) to MidOcean Partners. Re-Sourcing is a leading provider of strategic staffing, consulting, and direct hire solutions, focusing on Compliance, Legal, Information Technology, Finance, Accounting, and HR positions. The Company serves clients through seven premium brands: JW Michaels & Co., Compliance Risk Concepts, ExecuSource, Perennial Resources International, Partnership Employment, Technology Navigators, and Conexus Recruiting.
McNally invested in Re-Sourcing in line with the firm’s investment thesis in business services and human capital management. The investment was consistent with the firm’s strategy of partnering with founders and management owners to promote the continued success and expansion of privately-held businesses.
“Re-Sourcing has established a strong reputation as a staffing industry leader. Under McNally Capital’s ownership and my partners’ efforts, we have achieved rapid organic growth and significant scale, particularly through our acquisitions of Conexus Recruiting and Logis CFO. Both highly reputable West Coast brands, these acquisitions further expanded our geographic reach and service offering for our clients, made possible through a strong balance sheet, our lenders’ support, and McNally Capital,” stated Joe Kelly, Managing Partner of Re-Sourcing.
Among others, Jeff Bowling, founder and former CEO of The Delta Companies, a Dallas-based staffing company, served as an industry partner to McNally Capital. Jeff participated in the initial due diligence process and later became a board member and minority co-investor, bringing his extensive staffing expertise and relationships to the Company. McNally worked closely with management and the entire board to maintain an active acquisition pipeline, develop a long-term strategic plan, and make investments to improve operations.
“We are proud to have built upon Re-Sourcing’s impressive history of growth and created value for our investors. Our firm’s thesis-driven investment philosophy and proprietary value creation framework enabled us to execute on unique acquisition opportunities and accelerate growth for the Company and its shareholders,” stated Adam Lerner, Partner of McNally Capital. “We look forward to their continued success.”
Re-Sourcing currently employs more than 200 team members across ten markets throughout the United States. The Company has grown significantly in recent years, making three new acquisitions since 2019 and, together with impressive organic growth, approximately doubling revenue in that time.
McNally Capital makes thesis-driven investments in the U.S. and targets founder- and management-owned companies. The firm leverages a deep bench of industry partners who provide incremental operating knowledge and subject matter expertise. McNally focuses on investing in lower middle-market businesses with $5 million to $20 million in EBITDA in the Aerospace & Defense/National Security, Industrial Products & Services, and Business Services industries. The firm is currently investing out of its committed buyout fund, McNally Capital Fund II, LP.
Sell-side advisors for the transaction included Houlihan Lokey as financial advisor and Ropes & Gray LLP as legal counsel. Credit support during McNally Capital’s ownership period was provided by Tree Line Capital Partners, LLC and Boathouse Capital.
About McNally Capital
McNally Capital is a lower middle-market private equity firm targeting thesis-driven investments in the U.S., specifically focused on acquiring founder and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 160+ year legacy as a family-owned and operated company. We look for businesses where we believe we can apply our hands-on experience, institutional capabilities, and proprietary value creation framework to benefit management teams in their next phase of growth and build value for our investors.
About The Re-Sourcing Group
Re-Sourcing is a leading provider of strategic staffing, consulting, and direct hire solutions, focusing on Compliance, Legal, Information Technology, Finance, Accounting, and HR positions. The company serves clients through seven premium brands: JW Michaels & Co., Compliance Risk Concepts, ExecuSource, Perennial Resources International, Partnership Employment, Technology Navigators, and Conexus Recruiting. Re-Sourcing, founded in 2003, is headquartered in New York City with 19 offices in 10 markets. Re-Sourcing’s differentiated operating partner model enables a strong focus on building direct relationships with clients to bolster retention and deepen understanding of client needs. For more information, please visit www.myresourcing.com.