McNally Capital Announces Sale of The Re-Sourcing Group

Unlocking Growth Potential: The Sale of The Re-Sourcing Group In a recent development in the business services and human capital management sector, McNally Capital is thrilled to announce the successful sale of The Re-Sourcing Group to MidOcean Partners. The Re-Sourcing Group, a renowned provider of strategic staffing, consulting, and direct hire solutions, has solidified its position as a leader in the industry. This sale marks a significant milestone for both companies and sets the stage for continued growth and success. Under McNally Capital's ownership, The Re-Sourcing Group experienced rapid organic growth and expanded its reach through strategic acquisitions. The addition of Conexus Recruiting and Logis CFO allowed the company to strengthen its geographic presence on the West Coast and enhance its service offerings to clients. With a strong balance sheet and unwavering support from lenders, McNally Capital played a crucial role in facilitating these acquisitions and driving the company's overall expansion. Joe Kelly, the Managing Partner of Re-Sourcing, emphasizes the positive impact of McNally Capital's ownership and the efforts of his partners on the company's growth and scale. Re-Sourcing has garnered a strong reputation as an industry leader, and with this strategic sale, it is poised to reach new heights under MidOcean Partners' direction. Drawing on the expertise and relationships of industry partner Jeff Bowling, founder and former CEO of The Delta Companies, McNally Capital ensured a seamless due diligence process and benefitted from Bowling's deep understanding of the staffing industry. Bowling's involvement as a board member and minority co-investor further propelled The Re-Sourcing Group's growth trajectory. McNally Capital's investment philosophy, driven by specific investment theses, and a proprietary value creation framework have been instrumental in delivering exceptional results. By executing unique acquisition opportunities and focusing on long-term strategic planning, the firm was able to unlock the growth potential of The Re-Sourcing Group, creating significant value for investors. As of now, The Re-Sourcing Group boasts a workforce of over 200 professionals across ten markets in the United States. The company's impressive organic growth, coupled with three successful acquisitions since 2019, has nearly doubled its revenue during this period. This exceptional growth trajectory demonstrates the company's ability to adapt to market demands and provide exceptional staffing and consulting solutions to its clients. McNally Capital specializes in thesis-driven investments in the lower middle-market segment. With a keen focus on founder- and management-owned companies, the firm leverages its extensive network of industry partners to provide invaluable operational knowledge and subject matter expertise. McNally Capital targets businesses in the Aerospace & Defense/National Security, Industrial Products & Services, and Business Services industries, with an EBITDA range of $5 million to $20 million. The current investments are managed through McNally Capital Fund II, LP, the firm's committed buyout fund. Credit support during McNally Capital's ownership period was provided by Tree Line Capital Partners, LLC, and Boathouse Capital. This collaborative effort has played a vital role in ensuring the success and smooth transition of The Re-Sourcing Group's sale to MidOcean Partners. In summary, the sale of The Re-Sourcing Group showcases the power of strategic partnerships and investment expertise. McNally Capital's unwavering commitment to delivering value and driving growth has propelled The Re-Sourcing Group to new heights. This transaction sets the stage for further success and cements The Re-Sourcing Group's position as a leading provider of strategic staffing and consulting solutions in the industry. For more information about McNally Capital and The Re-Sourcing Group, please visit their respective websites at www.mcnallycapital.com and www.myresourcing.com.