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Monday, 18 March 2013 07:10

MiBiz Growth Report: March 18, 2013

Written by  MiBiz Staff
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Here is the MiBiz Growth Report for March 18, 2013:

* M&A: Kalamazoo-based Zeigler Automotive Group, which ranks among the top 100 “mega dealers” in the country, acquired Don Davis Honda in Amherst, N.Y., according to a statement from Zeigler. The move is the company's first out of the Great Lakes area, where it has dealerships in West Michigan, the greater Chicago area, and Elhart, Ind. Zeigler purchased the dealership for $3.2 million, according to a report in The Buffalo News. The company said it plans to upgrade the new location to Honda's new Generation 3 design, which debuted with Zeigler's other Honda dealership in Kalamazoo.

* M&A: Grand Rapids-based Kent Record Management Inc. acquired the assets of two companies, Lakeshore Document Services of Muskegon and Metro Business Archives of Benton Harbor, according to a statement. The move helps Kent Records expand its operations in Michigan and northern Indiana and add plant-based, mobile and media shredding. The company said it plans to operate out of the newly acquired offices.

* M&A: Grand Rapids-based restaurant operator Meritage Hospitality Group Inc. (OTCQX: MHGU) acquired a Wendy's restaurant in Buford, Ga., according to a statement. The acquisition furthers Meritage's growth plan of targeting growth in existing and new markets, said CEO Robert Schermer, Jr. Meritage now owns and operates 112 restaurants in six states including Florida, Georgia, Michigan, North Carolina, South Carolina and Virginia.

* M&A: Grand Haven-based Total Quality Inc. (TQI), a full-service logistics company serving the life sciences industry, was acquired by Greenville, Tenn.-based Forward Air Corp. (Nasdaq: FWRD) for $66 million, or eight times adjusted EBITDA, plus a $5 million earn-out based on performance in 2013 and 2014, according to a statement. TQI had revenues of about $54.8 million in 2012. According to Forward Air, TQI was acquired on a cash-free, debt-free basis with an adjustment for working capital. The transaction will be funded by Forward Air's cash reserves and is expected to be accretive to its 2013 earnings.

* M&A: Wyoming, Mich.-based ACI Parts Warehousing purchased certain assets of H&H Wheel Service of Roseville, Mich., according to a report in Aftermarket News. Both companies serve as warehouses for Parts Plus stores. The deal allows ACI to expand its footprint and was initiated when H&H's owner announced he wanted to retire, the report stated.

* M&A: Warren Buffett's Berkshire Hathaway (NYSE: BRKA) partnered with private equity firm 3G Capital with offices in New York and Brazil in a deal to acquire H.J. Heinz (NYSE: HNZ) for $28 billion, including debt, or $72.50 per share, a 20 percent premium on the stock's closing price the day before the deal was announced. While Heinz is famous for its iconic ketchup products, it makes pickles, vinegar and sauces at a plant on 16th Street in Holland. Berkshire and 3G, which also owns Burger King, will have an equal partnership in the company, with 3G running the day-to-day operations, according to a report in the New York Times.

* M&A: Ishpeming, Mich.-based Bell Hospital and Hancock, Mich.-based Portage Health both signed letters of intent with LifePoint Hospitals of Brentwood, Tenn., the company that acquired Marquette General Hospital in 2012. The moves come as LifePoint seeks to build a regional presence in the Upper Peninsula, according to Modern Healthcare. The letter of intent between Portage Health and LifePoint will pursue the creation of a proposed joint venture where both companies would share ownership of the hospital, with LifePoint acquiring a majority stake. The deal with Bell Hospital would see the organization be acquired by LifePoint.

* Private equity: Genstar Capital, a middle market private equity firm based in San Francisco, Calif. and focused on investments in the insurance and financial services sectors, acquired Grand Rapids-based Acrisure LLC from GCP Capital Partners, a middle market private equity firm in New York City, according to statements from both PE firms. Acrisure is a retail insurance agency co-founded in 2005 to acquire independent insurance agencies across the Midwest. Its portfolio includes The Campbell Group in Grand Rapids and Shinberg Insurance Agency in East Lansing, Mich. GCP invested $20 million in the company in 2010 to support its acquisition-based growth plan. Genstar has more than $4 billion of committed capital under management.

* Private equity: Toronto-based DW Healthcare Partners, a private equity firm specializing in health care companies, and its new partner, Health & Safety Institute (HSI) of Eugene, Ore., a for-profit emergency care and response training organization in North America, invested in Summit Training Source Inc. of Grand Rapids, according to a statement. Terms of the deal were not disclosed. Summit is a provider of health and safety training materials. DWHP's Fund III aims to serve as a strategic resource to founders to accelerate the growth in their businesses, according to a statement. The PE firm's first two funds were $88 million and $162 million in size and resulted in 16 platform company investments. For the third fund, the firm seeks investments in companies with EBITDA of $4 million or more, according to a statement.

* Expansion: Park Ridge, Ill.-based ITRA Global, a tenant representation service, expanded its national reach with the addition of a new office in Grand Rapids, according to a statement. Market veteran Chris Atwater will serve as principal of ITRA Global / Michigan Commercial Space Advisors, which will represent tenants and buyers of commercial real estate.

* Expansion: Grand Rapids-based transportation and logistics provider Supply Chain Solutions Inc. signed a five-year lease for 38,500 square feet of space at a warehouse facility in Lafayette, Ind., according to a statement. The company has the option to expand up to 147,000 square feet. Supply Chain Solutions said it wanted to relocate its Chicago facility to the new location so it could better serve client SMG Shandong Special Industry Group Co., LTD. of China.

* Relocation: Kellogg Co. (NYSE: K) plans to move the operations of Kashi Co., which it acquired in 2000, from La Jolla, Calif. to Battle Creek after expressing dissatisfaction with Kashi's performance, according to a report in The San Diego Daily Transcript. The move resulted in layoffs of more than two-dozen workers in California.

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