Blue Sea Capital Acquires Rhino Tool House

Concord, NC/West Palm Beach, FL – Blue Sea Capital, LLC (“Blue Sea”) today announced that it has acquired Rhino Tool House (the “Company”). Terms of the transaction were not disclosed.

Rhino Tool House provides customized assembly tools and material handling solutions to OEMs with manufacturing operations in a wide range of end markets. The Company, based in Concord, N.C.,serves its U.S. customer base out of eleven facilities across the Midwest, Southeast, and Northeast.

Rhino Tool House is led by CEO Dan Brooks and President of Distribution Chip Paulsen, two highly respected and experienced executives. Under Brooks’ and Paulsen’s leadership, Rhino Tool House has expanded the Company’s management team and completed eight add-on acquisitions since 2018, while maintaining a customer-focused, value-added approach to servicing major U.S. manufacturers. Blue Sea’s partnership with Rhino Tool House will focus on advancing the Company’s organic growth strategy, expanding geographically throughout the U.S., and continuing to seek complementary add-on acquisitions.

“Dan, Chip, and the entire team have done a tremendous job growing the Company and positioning it for future success,” said Eric Hansen, a Blue Sea Capital partner.  “We are thrilled to partner with such an outstanding team and look forward to leveraging our expertise and resources to support Rhino Tool House.”

“We are incredibly proud of our team and the values-based culture we’ve built at Rhino Tool House, and we are excited to partner with Blue Sea for our next phase of growth,” Brooks stated.

Paulsen added, “Blue Sea will help us accelerate our growth, both organically and through acquisitions, while providing the same high level of service, local expertise and consultative partnership to which our customers are accustomed. We would like to thank Wincove for their partnership and commitment to our business.”

Michael McGovern, a partner at Wincove Private Holdings added, “Rhino Tool House has established itself as a leader in assembly-line-focused distribution by continuing to offer best-in-class service to its customers. We are proud of the company that Rhino Tool House has become under Dan and Chip’s leadership and wish the Rhino Tool House team, as well as Blue Sea, much continued success in their next phase of growth.”

Lincoln International acted as financial advisor and Kirkland & Ellis acted as legal counsel to Blue Sea Capital. Raymond James acted as financial advisor and Husch Blackwell acted as legal counsel to Wincove Private Holdings and the Company.

About Rhino Tool House

The Rhino Tool House platform was created with the 2018 merger of Rhino Assembly, founded in 2000 by Dan Brooks and Leif Anderson, and The Tool House, founded in 1983 by Dave Wirth. Rhino Tool House’s mission is to be the leading customer-focused power tool distributor, integrator and manufacturing partner with scale to deliver customized engineering solutions and local, hands-on support across the entire U.S. The Company provides superior services, local expertise, and a high degree of responsiveness to empower its customers to be more productive, build better quality products and maintain safe environments for their employees. Rhino Tool House is headquartered in Concord, NC and employs over 250 full-time employees across eleven facilities.

Blue Sea Capital is a private equity firm based in West Palm Beach, Florida that invests in growth-oriented lower middle market companies valued up to $300 million. The firm has over $1.4 billion in assets under management and invests across three industry verticals: aerospace & defense, healthcare and industrial growth. Blue Sea Capital’s strategy is to partner with talented leaders and differentiated companies, typically as the first or second institutional investor, and deliver strategic and operational value-add that drives growth acceleration, industry outperformance and business transformation.

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