McDermott Cue Mfg LLC, a Menomonee Falls-based manufacturer of high-end custom pool cues, has been acquired by Greg Knight, a Milwaukee-based business owner. Nat Rosasco, president and CEO of McDermott, and Larry Lielb, its executive vice president, have joined Knight as minority owners of the company.
McDermott was previously owned by Prospect Partners LLC, a middle-market private equity firm based in Chicago. Terms of the acquisition, which closed Friday, were not disclosed.
Knight is also owner of Knight Chemicals LLC, a Milwaukee-based chemical company. Knight became interested in purchasing McDermott several months ago, when he learned that Prospect Partners was looking to sell its interest in the company.
“I was looking to diversify and acquire a company in a different industry,” Knight said. “(McDermott) has a good brand name, good people, good management and is an all around good company.”
Rosasco and Liebl will remain in their roles with the company, and will oversee day-to-day operations. Knight will serve as the company’s director, and will meet the management on a weekly and monthly basis.
“As a strategic team, as we look at (Knight) as our partners, there will be much more involvement (than Prospect Partners),” Rosasco said. “That’s very welcome and we’re very enthusiastic about it.”
McDermott cues are made for pool enthusiasts – and can cost between $200 and $4,000. In 2007, the company created its Star and Lucky lines, which sell for $99 to $160 and $59 to $89, respectively. Under Knight’s ownership, the company plans to expand its marketing and sales to the Star and Lucky brands.
“Nat and Gary have developed these other price points and are now to a point where they’re starting to execute on that,” Knight said. “Our growth for the future time frame is to continue on that and keep picking up marketshare.”
McDermott’s number of employees flexes throughout the year, from about 24 to 40 employees, Rosasco said, and on average it has about 35 workers.
Despite the economic conditions, McDermott’s sales have remained strong.
“2008 was a very strong year for us – we were up slightly (over 2007),” Rosasco said. “Our bottom line was quite strong. And so far in 2009, our first quarter was up 10 percent.”
