Print this page
Published in Economic Development

MiBiz Growth Report: Jan. 11, 2016

BY MiBiz Staff Sunday, January 10, 2016 11:40pm

Here is the MiBiz Growth Report for Jan. 11, 2016.

• M&A: Netech Corp., a family-owned business founded 19 years ago by James Engen in Grand Rapids, has signed a definitive agreement to be acquired by Presidio Inc. of New York City. Under the deal, Presidio will acquire the business operations of Netech, an I.T. services provider with revenues of more than $300 million and more than 430 employees, according to a statement. Netech maintains 11 offices across the Midwest. The deal is expected to close in the first quarter. Presidio is owned by funds affiliated with New York City-based private equity firm Apollo Global Management LLC (NYSE: APO).

• M&A: Wyoming, Mich.-based Jim White Millwork LLC has been acquired by Oklahoma City-based building material wholesaler Cedar Creek LLC. JW Millwork distributes molding products domestically and internationally from its facility in Wyoming. The company also maintains facilities in Kansas City, Houston, Connecticut and South Carolina. The West Michigan company will continue to service its customers through the acquisition, according to a statement.

• M&A: Ludington-based ProAct Services Corp. acquired Carbonair Environmental Systems Inc. of Roseville, Minn., according to a statement. ProAct is a portfolio company of Hammond, Kennedy, Whitney & Company Inc., an Indianapolis-based private equity firm. The deal expands ProAct’s capabilities in renting and selling groundwater treatment equipment for the environmental, petroleum, and construction industries across North America.

• M&A: Grand Rapids-based Data Strategy LLC, a data center consultant, has acquired boice.net of New Albany, Ind., according to a statement. The deal allows Data Strategy to expand into the Ohio Valley region. The combined company will maintain six offices across the four-state region of Michigan, Indiana, Kentucky and Ohio.

• M&A: Grand Rapids-based Precision Aerospace Corp. has acquired the assets of Comstock Park-based CNC Precision Machining LLC, according to a statement. The manufacturer of complex housings, manifolds and assemblies for the aerospace industry acquired CNC Precision Machining in a move to diversify its long-term growth plans, President Bill Hoyer stated. Terms of the deal were not disclosed. CNC Precision Machining manufactures custom prototypes, production parts and assemblies for a variety of industries including the aerospace and military sectors.

• M&A: Lansing-based Neogen Corp. (Nasdaq: NEOG) acquired the rodenticide assets of Virbac Corp., the North American affiliate of Virbac Group, a France-based animal health firm, according to a statement. Neogen, a manufacturer of food and animal safety products, acquired active ingredients for rodenticides that will complement its existing line of products. The acquisition will also add several OEM and retail customers. Terms of the deal were not disclosed.

• M&A: Perrigo Co. plc (NYSE: PRGO) plans to buy the generic products of the acne treatment Retin-A from Matawan Pharmaceuticals LLC, according to a statement. Perrigo distributed the generic form of Retin-A from 2005 to 2013 under an agreement with the Cranford, N.J.-based Matawan. Sales of Retin-A were about $287 million in the 12-month period ending in October 2015. The acquisition will generate adjusted earnings of more than 20 cents per share for Perrigo within the first 12 months after the deal closes, minus transaction and integration costs and amortization. Additional financial terms of the deal were not disclosed. The acquisition should close in the first quarter of 2016.

• M&A: ProCare Systems Inc., a management company for pain-management medical practices, was acquired by Melville, N.Y.-based North American Partners in Anesthesia (NAPA). The acquisition enables NAPA, an anesthesia and perioperative management company, to establish a pain-management division in Grand Rapids, according to a statement. Dr. Fred Davis and Dr. Mark Gostine founded ProCare in 1994 with CEO Cyndy Walsh to manage their medical practice, Michigan Pain Consultants. The company has more than 200 employees and three chronic pain management practices at 13 locations in Michigan. Walsh will remain CEO and Davis will serve as president and chief medical officer of the new organization. Gostine will serve as senior vice president and secretary.

• M&A: Grand Rapids-based private equity firm Blackford Capital acquired Hudsonville-based Grand Equipment Co. for its Michigan Prosperity Fund, according to a statement. Grand Equipment sells new and used construction equipment and employs 37 workers. Blackford stated that growth in the construction industry drove the deal.

• M&A: Grand Rapids-based Auto-Wares Group of Companies, a supplier and servicer of automotive parts stores, has acquired Chet Nichols Inc. of Benton Harbor. The acquisition comes as Auto-Wares seeks to grow in Southwest Michigan, said Chairman Fred Bunting in a report in Aftermarket News. Auto-Wares currently has annual sales of approximately $275 million, according to a statement.

• M&A: Grand Rapids-based Todd Wenzel Automotive Group has acquired the Red Holman Buick GMC dealership in Westland, according to a statement. The store is the fourth GM dealership for Todd Wenzel Automotive and its third selling the Buick and GMC brands. Terms of the deal were not disclosed. The Westland dealership will be renamed Todd Wenzel Buick GMC of Westland.

• M&A: Syracuse, N.Y.-based Carrols Restaurant Group Inc. (Nasdaq: TAST) has acquired a Burger King restaurant at 3015 South Westnedge Ave. in Kalamazoo, as well as 23 locations in the metro-Detroit area. The announcement of the acquisitions came as part of a broader deal to acquire a total of 46 Burger King locations, according to a statement. Carrols operates 705 restaurants in 16 states.

• Expansion: Grand Rapids-based Madcap Coffee Company Inc. plans to open a second location in the city’s Fulton Heights neighborhood. The downtown cafe will open its new store at 1041 East Fulton Street in a former auto shop building where the coffee roasting company has a roastery operation, according to a statement. Madcap plans to open the location in the spring of 2016. The building is owned by Cortado LLC, an entity controlled by Chris Muller, president of Grand Rapids-based real estate firm M Retail Inc. Muller bought the 1,790-square-foot building in October 2014 for $405,000, according to city records.

• Expansion: As part of General Motors’ commitment to invest $1 billion by 2030 in Michigan, the Detroit automaker plans to invest $43.35 million in its powertrain components facility, located at 1600 Burton Street SW in Wyoming, according to a statement. The automaker expects to create 55 new jobs and retain 15 current jobs as a result of the investment. The Wyoming plant currently employs 530 workers.

• Expansion: Product design firm Tekna Inc. and manufacturer Hycorr LLC will each take approximately 50,000 square feet in the Midlink Business Park located at the intersection of I-94 and Sprinkle Road, according to a statement. Matt Callander and David Keyte of Kalamazoo-based real estate brokerage firm Callander Commercial represented Midlink in the deal.

• Expansion: Byron Center-based Pilot Malt House LLC, a provider of malted grains for the craft breweries and distilleries across Michigan, announced a $1 million expansion to Lucketts, Va. The processor plans to hire seven people to run Pilot Malt Virginia LLC. The state and local governments offered Pilot Malt a 12-year tax abatement for the project, and the state also is committing nearly $20,000 through the Virginia Department of Agriculture and Consumer Services, which will be matched by the local Loudoun County.

• Expansion: CHS-Hamilton Inc. has established a new farm services center in Wayland to serve member farmers in the region. The new agronomy facility in Wayland provides 18,000 tons of dry fertilizer storage, 4.4 million gallons of liquid fertilizer storage, a 100-car rail loop and a 20,000-square-foot crop protection and seed service sector.

• Fundraising: Community Shores Bank Corp. netted a little more than $5 million in capital through a rights offering and private stock placement that led to the end of increased state and federal regulatory oversight. The FDIC and the Michigan Department of Financial Services on Dec. 16 terminated a September 2010 consent order that required the Muskegon-based bank to meet certain capital requirements. The corporation will use the process from the capital raise to repay the overdue and deferred interest on its trust preferred securities, and to make a capital contribution to Community Shores Bank of about $3.7 million. The remaining funds will go for “general working capital purposes.” Community Shores, with total assets of about $182 million, has three offices in Muskegon County and one in Grand Haven in neighboring Ottawa County.

Additional Info

  • Image_Position: Full
Read 2001 times Last modified on Monday, 11 January 2016 12:57
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >