Information on the Target

Combined Caterers, headquartered in Charlotte, NC, is a premier event management and catering services provider that has been operational since 1989. The Company specializes in delivering comprehensive event management solutions for upscale weddings, corporate gatherings, and social events, including non-profit galas across the Southeastern United States. Over the years, Combined Caterers has successfully expanded its geographic footprint and currently operates several prominent local catering brands in major cities, including Best Impressions Caterers in Charlotte, Duvall Catering & Events in Charleston, and Rocky Top Catering in Raleigh.

The Company is renowned for its exceptional food quality and outstanding service. It caters to a diverse clientele across exclusive venues and third-party locations, supported by centralized commissary kitchens strategically located in each market. This infrastructure allows Combined Caterers to efficiently and consistently execute a wide array of events, thereby solidifying its position as a market leader in the event catering sector.

Industry Overview in the Southeast

The event catering industry in the Southeastern United States has witnessed substantial growth in recent years, fueled by rising consumer demand for high-quality catering services. The region's vibrant culinary scene, supported by a diverse demographic, has created an expansive market for event management and catering businesses. From charming weddings to corporate events, clients are increasingly willing to invest in exceptional culinary experiences, which has propelled the industry forward.

Furthermore, post-pandemic recovery has sparked a resurgence in social gatherings, contributing positively to the catering sector. Many businesses and individuals are eager to host events, leading to an increase in bookings and a heightened focus on quality service. As a result, established players in the market, like Combined Caterers, are well-positioned to capitalize on this growing demand.

The competitive landscape features a multitude of catering companies, ranging from small startups to large established firms. However, the industry remains fragmented, offering opportunities for consolidation and growth through strategic partnerships and acquisitions. This dynamic creates an excellent environment for investors to identify promising companies that can expand their market reach and enhance their service offerings.

Moreover, the event catering industry is becoming increasingly tech-savvy, with many companies adopting digital tools for event planning, menu selection, and customer engagement. This trend not only improves operational efficiency but also enhances the customer experience, allowing businesses to better meet the evolving expectations of clients.

The Rationale Behind the Deal

The acquisition of Combined Caterers by CCMP Growth Advisors, supported by Stellus Capital Management's financing, represents a strategic move aimed at leveraging the Company's strong reputation and growth potential in the catering market. The flexible financing structure provided by Stellus will enable CCMP to enhance Combined Caterers' operations and explore additional opportunities for market expansion.

Furthermore, with CCMP's experience in scaling multi-site consumer businesses and consolidating fragmented markets, the partnership is well-suited to capitalize on the burgeoning demand within the Southeast's event catering industry. By combining resources and expertise, the partnership aims to strengthen Combined Caterers' market position and enhance service offerings.

Information About the Investor

Stellus Capital Management, LLC is a leading investment firm specializing in providing flexible financing solutions for growth-oriented businesses. With an extensive track record in private debt and equity investments, Stellus focuses on delivering tailored financial solutions that meet the unique needs of its portfolio companies. The firm's commitment to its partners is reflected in its robust support and strategic approach.

Doug Bollermann, Managing Director at Stellus, emphasized the firm's enthusiasm for partnering with CCMP and Combined Caterers, recognizing the potential for growth in the event catering market. Stellus' expertise in financial structuring will play a critical role in facilitating the Company's strategic initiatives and driving operational efficiency.

View of Dealert

The acquisition of Combined Caterers, facilitated by Stellus Capital Management, appears to be a sound investment based on several compelling factors. The Company's established reputation and proven track record in the Southeast event catering industry provide a solid foundation for future growth. Furthermore, the partnership with CCMP Growth Advisors, known for its expertise in scaling businesses, adds significant value to the investment.

The catering industry's favorable trends, driven by increasing consumer demand and a shift towards high-quality service, further enhance the appeal of this deal. Combined Caterers is well-positioned to benefit from these trends, allowing for potential revenue growth and market expansion in the coming years.

Moreover, the fragmented nature of the catering market presents additional opportunities for consolidation, enabling Combined Caterers to expand its reach through strategic acquisitions. With the right resources and support from Stellus and CCMP, the Company can capitalize on these opportunities and further solidify its market leadership.

Overall, this deal holds promise for significant returns on investment, as the combination of a reputable catering brand, a strategic investor, and favorable market dynamics sets the stage for a successful growth trajectory.

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