O2 Invests in SIB Fixed Cost Reduction
May 16, 2020
Bloomfield Hills, Michigan
O2 Investment Partners (www.o2investment.com) has acquired SIB FIXED COST REDUCTION (www.aboutsib.com) to support the company’s continued growth. Kevin Flounders was appointed CEO of SIB commensurate with the transaction and will also serve on the board of directors. Dan Schneider, founder and former CEO of SIB, will continue to serve on the board of directors. Kevin and Dan are both equity investors in the business.
Kevin Flounders, CEO of SIB commented, “We are very excited to partner with O2 to help us facilitate our next stage of growth. We have built a unique and robust platform and would like to continue our aggressive expansion. We also have a strategic plan to expand our service offerings and sales capabilities through targeted M&A and investments in our team. Our Company and platform are poised to scale and we believe O2 is the perfect partner to help us achieve our goals. We also believe that SIB will be a reliable partner to our clients and prospects in these uncertain times as executives look to manage their operations and cost structures.”
Founded by Dan Schneider in 2008, SIB is a leader in fixed cost reduction services providing invoice analysis, vendor negotiation and cost monitoring for customers across numerous expense categories including telecom, utilities, and waste management among others. SIB has worked with Fortune 500 companies, restaurant groups, hotel groups, regional banks, senior living groups, health systems, grocery stores, retail chains, and everything in between. The Company has reviewed $3 Billion in spend across 50,000 locations nationwide, and maintains benchmark pricing that applies to any industry.
Pat Corden, Partner at O2, commented, “We are very excited to partner with Kevin Flounders, Dan Schneider, and the SIB team. SIB has established a strong position in its industry and we believe there is tremendous opportunity for organic growth in all types of economic environments. Our goal is to support management’s vision and supplement organic growth with a targeted M&A strategy.” Mr. Corden added, “we also want to thank our financial partners TCF Bank and LBC Small Cap Credit for their confidence and participation in this investment.”
SIB Fixed Cost Reduction is the second platform investment for O2’s most recent fund, O2 Investment Partners Fund III.
About SIB Fixed Cost Reduction:
SIB is a leader in fixed cost reduction services providing invoice analysis, vendor negotiation and cost monitoring for customers across a variety of expense categories including telecom, utilities, and waste management. The company earns contingent fees based on the savings found for clients. SIB is headquartered in Charleston, SC.
About O2 Investment Partners:
O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select niche industrial companies. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value. O2 invests with a view toward partnering with management to build and grow the business and take it to its next stage of development. This requires not only a clear vision and strategic plan to create shareholder value, but a close partnership and alignment of interest with management.
Additional information is available at www.o2investment.com ; www.aboutsib.com