CE Pro May 2021 - 56

Channel
TIPS | EDUCATION & EVENTS | DISTRIBUTION

WAVE Electronics
Acquired by Private
Investment Firm
Altamont Capital Partners is new owner,
while leadership stays under CEO Mark
Fukuda; Kingswood property AVAD
Canada shutters. By Jason Knott
PRIVATE INVESTMENT firm
Altamont Capital Partners
announced in March that it
had acquired certain assets
of WAVE Electronics, a distributor of connected home,
audio/video, and residential
security products with nine
branches across the U.S.
WAVE Electronics is a single-source solution provider
with a long history in the
custom electronics industry.
The company was a member
of the PowerHouse Alliance
but broke off from that
group. It was also among the
first distributors to push into
creating margin-laden house
brands for various product
categories.
In 2018, WAVE was
acquired by Kingswood
Capital, the owners of AVAD,
and the two distribution
companies merged under the
WAVE brand name. In 2019,
the company closed several
under-performing branches. Altamont's investment
provides liquidity that will
support WAVE's existing
capabilities and expand

its inventory, creating an
ample runway for continued
growth.
All of WAVE's current U.S.
locations were included as
part of the transaction and
are continuing to operate in
the normal course. Additionally, WAVE's senior management will continue to run
the business, including CEO
Mark Fukuda, VP of sales
Bryan Stewart, and VP of
purchasing & merchandising
Ainslie Fukuda.
" WAVE plays a critical role
in the connected home and
audio/visual supply chain,
partnering with dozens of
high-quality suppliers to
provide value-add services
and distribute products
to a fragmented customer
base, " says Randall Eason,
a managing director at
Altamont. " We are excited to
be making this investment,
and we are delighted to have
the opportunity to partner
with Mark and the rest of
the team to fuel WAVE's
continued profitable growth.
Together, we are confident

WAVE Electronics had been merged with AVAD when
Kingswood Capital purchased it in 2018.

that we will drive value for
the business' customers, employees, vendors and other
stakeholders in the months
and years to come. "
Altamont Capital Partners
is a PE firm based in the
San Francisco Bay Area with
more than $2.5 billion of
assets under management.
Mark Fukuda notes, " Altamont shares our commitment to delivering unrivaled
support and superior service
to our customers, while
investing in and growing
our team, and will be a true
partner as we execute on our
strategic objectives. "
Meanwhile, Kingswood
property AVAD Canada
ceased operations and has
gone into receivership with
the entire board resigning,
CE Pro reported.
On March 17, 2021, the
Ontario Superior Court of

Justice granted an Order
appointing MNP Ltd. as
receiver of all of the assets,
undertakings and properties
of AVAD Canada Ltd. AVAD's
operations have now ceased.
The file for insolvency was
petitioned by MidCap Funding IV Trust against AVAD
Canada Ltd.
The AVAD Canada bankruptcy declaration came just
one day after WAVE Electronics was purchased.
According to the petition,
AVAD Canada " was highly
dependent upon its U.S.
affiliates for management,
operational, administrative
and financial support. As
a result of the U.S. Sale
Transaction, that support
will no longer be available. " It
also goes on to say that the
AVAD Canada's " business is
no longer commercially viable
and is being wound down. "

56  |  CE Pro May 2021	cepro.com

C2105 pp56-57 Channel.indd 56

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CE Pro May 2021

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