Merger creates industrial distributor with 38 locations throughout the Midwest and South

Value Added Distributors (“VAD”), a portfolio company of Rotunda Capital Partners, and Exotic Automation & Supply (“Exotic”) are excited to announce a merger of the two companies. Since VAD partnered with Rotunda in 2024, this merger establishes a significant step towards the shared vision of building a national, value-added distribution platform.

VAD, founded in 1995 and headquartered in Shawano, WI, is a leading distributor of hoses, tubes, seals, couplings, and related products to specialty vehicle OEMs and other mobile fluid power users. VAD operates out of 18 facilities across the Midwest and Southern US and provides highly value-added services like custom fabrication, assembly, kitting, and vendor managed inventory solutions.

Exotic Automation & Supply was founded in 1963 and has grown to become a leading provider of motion & control solutions. The company has 20 locations throughout Michigan and Indiana and offers a comprehensive selection of solutions including custom hoses and fittings, pneumatic and hydraulic components, filtration, lubrication equipment, molded rubber products, engineered power units and compressed air equipment and service, serving the industrial MRO market.

Mike Kostelnik, Chief Executive Officer of VAD, will continue as CEO of the combined company. Mike commented, “The combination of these two companies is an historic event. Not only are both VAD and Exotic two of the most respected Parker Hannifin distributors in the country, but together we can provide a level of product selection and value-added distribution services like vendor managed inventory (VMI), kitting and aftermarket support services that will be unmatched in our combined territory.”

Tom Marino, CEO of Exotic, will remain with the combined company as a significant equity holder and member of the Board of Directors. Tom commented, “I am so proud of what our team has built and the long-standing relationships we have with our vendors and customers. As we look towards the future, merging with VAD creates an opportunity to expand what we can offer while maintaining the values that have guided our business. We look forward to what this next chapter brings for our team and our customers.”

The combined companies will benefit from significant infrastructure and scale advantages, including access to a broader vendor base, customer base, expanded value-added service capabilities, multi-facility operational footprint, and enhanced IT, finance, HR, and warehouse systems.

Steve Orlando, President of Exotic, will become President of the combined company. Steve commented, “The combination of VAD and Exotic allows us to serve a broad range of MRO, industrial OEM, and mobile customers. Integrated, we become a super-regional, scaled industrial fluid power and automation distributor and fabricator, able to serve customers with a vast product portfolio and enhanced service capabilities.”

Both VAD and Exotic’s leadership team, including key management, will remain with the business to ensure continuity and support future growth.

About Value Added Distributors, LLC

Value Added Distributors, LLC is a distributor of hydraulic hose assemblies, wire harness solutions, kitting solutions, and vendor managed inventory services, delivering applied technology and value-added solutions to a wide range of industries. For more information on Value Added Distributors, visit us online at https://vadtek.com/.

About Exotic Automation & Supply

Exotic Automation & Supply is a distributor and provider of highly engineered industrial solutions across fluid power, motion control, sealing solutions, automation, and custom components, serving a diverse customer base across multiple industries. For more information on Exotic Automation & Supply, visit us online at https://exoticautomation.com/.

About Rotunda Capital Partners

Rotunda Capital Partners is an operationally oriented private equity firm focused on transforming family-founder owned companies into dynamic, data-driven platforms able to achieve and manage significant growth. Since its founding in 2009, Rotunda has partnered with management teams to build great businesses within three primary sectors: value-added distribution; asset-light logistics; and industrial and business services. Rotunda strives to achieve replicable results by implementing its Rotunda Performance System to create strategic alignment, develop lean processes and create robust, data-driven infrastructures. For more information, visit www.rotundacapital.com.

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