The Bottom Line: NewSpring Invests in Joneca
September 02, 2021
NewSpring, a family of private equity strategies, announced today that NewSpring Mezzanine, the Firm’s dedicated mezzanine strategy, has invested subordinated debt and equity to support the acquisition of Joneca Corporation (“Joneca”) by Lightspring Capital Partners.
Joneca is a leading supplier of high-quality garbage disposals and residential kitchen products
Joneca is an Anaheim, CA-based supplier of garbage disposals, hot water dispensers, air sanitizers and other residential kitchen products. Joneca’s leading product, state-of-the-art garbage disposals, are developed by an expert team of third-party engineers that build products with industry-differentiating features, including stainless steel grinding parts, magnet motors, noise control, and odor protection. The Company primarily sells its products through major home improvement and big-box club stores, with a growing e-commerce presence through Amazon, Walmart, and eBay.
The Company is expanding into new product lines
Since its founding in 1985, Joneca has expanded its product line beyond garbage disposals to include hot water dispensers, sanitization products, and more home products that are in high demand as the trend of home improvement continues to take hold. To meet the growing demand for its products, the Company recently launched e-commerce capabilities, guided by a newly appointed director of e-commerce, and expanded its manufacturing capacity to produce additional units as needed.
Joneca is primed for domestic and international market expansion
With only 50% of homes in the U.S. equipped with a garbage disposal and even less internationally, Joneca is well positioned for continued growth to meet growing demand for the product. With few competitors, Joneca’s high-quality products stand out even further as home construction experiences strong growth across the U.S.
“Homeowners and builders are constantly looking for ways to add value to their properties by adding modern conveniences. Our growth across product lines over the past year, both internationally and domestically, demonstrates that there is trust in our offering from consumers, retailers, and distributors. With the backing and support of NewSpring and Lightspring, we will be able to continue our growth trajectory in a strategic and meaningful way.”
Joneca is led by a seasoned team of industry experts
Led by Founder and President Ed Chavez, Joneca’s management team has a proven track record of innovating and identifying new market opportunities, both in geographic markets and with new product lines, to help the company reach new levels of growth.
“Joneca has demonstrated its value as a market leader that is well-positioned to meet the needs of their partners and end customers. Their prioritization of product value, quality, and service positions them for fast growth and longevity. Ed has shown tremendous leadership ability and has set the company on a high-growth path that we are excited to be a part of. We look forward to supporting their continued success.”