Here is the MiBiz Growth Report for June 27, 2016.
• M&A: German company Kion Group AG, an industrial truck, material handling and logistics automation equipment manufacturer, plans to acquire Dematic Corp. for approximately $2.1 billion in what executives described as a “landmark” transaction. The deal values the logistics and automation firm, whose North American operations are based in Grand Rapids, at an enterprise value of $3.25 billion, according to a joint statement. Dematic generated $1.8 billion in revenues and $166 million in adjusted earnings before interest and taxes during the calendar year 2015. Kion Group will acquire Dematic from funds managed by New York City private equity firm AEA Investors LP and the Ontario Teachers Pension Plan. The deal, which is expected to close in the fourth quarter pending regulatory approval, also carves out “certain liabilities,” according to a statement.
• M&A: Dublin-based Perrigo Co. plc (NYSE: PRGO), which maintains its headquarters in Allegan, Mich., signed a definitive agreement to divest its vitamins, minerals and supplements business to International Vitamin Corp. of Freehold, N.J. Terms of the deal, which will be subject to closing conditions and is expected to close by early August, were not disclosed. About 300 Perrigo employees currently work in the vitamins, minerals and supplements business, which is based in South Carolina. Perrigo was advised on the deal by Grand Rapids-based law firm Warner Norcross & Judd LLP and Los Angeles-based investment bank Houlihan Lokey Inc.
• M&A: SRS Industries LLC, which does business as Whitehall Industries in Ludington, has been acquired by UACJ Corp., a Tokyo-based aluminum manufacturer. Whitehall Industries is a vertically integrated supplier of extruded and fabricated aluminum components and assemblies for the automotive industry. The existing management team remained with the company as part of the deal. Birmingham, Mich.-based Quarton International served as exclusive financial adviser to SRS Industries on the deal. According to a statement from UACJ, Whitehall Industries had net sales of $117.3 million for the 2015 calendar year.
• Commercial National Financial Corp., the parent company of Commercial Bank in Ithaca, Mich., plans to acquire Mason State Bank in a $14 million deal. Under the terms of the agreement, Commercial National will buy all of the outstanding shares of Mason State Bank’s parent company, Capital Directions Inc., for cash and stock. The banks expect the deal to close in the fourth quarter, pending regulatory and Capital Directions’ shareholder approval. The combined bank would have more than $525 million in assets and 15 branches and lending offices in Central and Western Michigan. Boenning & Scattergood Inc. and the law firm of Foster Swift Collins & Smith PC advised Commercial National. Capital Directions was advised by Donnelly Penman & Partners Inc. and the law firm of Howard & Howard Attorneys PLLC.
• M&A: OptiMed Specialty Pharmacy in Kalamazoo recently acquired the specialty pharmacy business of Advanced Therapeutics in California. The deal expands OptiMed’s territory in the western half of the U.S. Terms of the transaction were undisclosed. OptiMed also received a $500,000 performance-based grant from the Michigan Economic Development Corp. to support a $1.2 million investment for OptiMed’s new home. The 34,000-square-foot facility on Ninth Street in Oshtemo Township will house OptiMed’s national headquarters and specialty pharmacy business. The project is targeted for completion by Oct. 1. The company’s expansion will result in the creation of about 80 new jobs.
• M&A: The 400-slip Grand Isle Marina in Grand Haven has been acquired by Dallas-based Safe Harbor Marinas LLC, an owner and operator of inland and coastal marinas across the U.S. Located just east of U.S. 31 drawbridge in the Grand River, Grand Isle Marina features 150,000 square feet of heated storage for boats up to 140 feet in length and 150 dry racks. The deal comes as Safe Harbor looks to increase its marina portfolio, which also includes Great Lakes Marina in Muskegon, according to the company’s website.
• M&A: Omega Construction Co. Inc. was acquired by Vic Laing of Belmont-based Broadwater Companies Inc., according to a statement. The Grand Rapids-based construction firm primarily works on multi-family residential and assisted living facilities. Omega Construction’s former owner, Frank Miceli, will stay on during the transition period and consult for Laing on an ongoing basis. Zeeland-based Rua Associates LLC advised Omega on the deal.
• M&A: Grand Rapids-based Universal Forest Products Inc. (Nasdaq: UFPI) announced two acquisitions in recent weeks. The company said it would acquire some assets of Robbins Manufacturing Co., a Tampa, Fla.-based treated lumber manufacturer. UFPI will acquire a five-plant portfolio that had net sales of $83 million last year. The company expects the deal to close by the end of August. Terms of the acquisition were not disclosed. Subsequently,
UFPI said it will acquire Idaho Western Inc., a Nampa, Idaho-based distributor of building materials for $11.5 million in the company’s outstanding shares. Executives said the transaction will take place on July 1. Idaho Western generated approximately $21 million in annual sales last year.
• M&A: The Boyd Group Inc. opened a new Gerber Collision & Glass repair center in Kalamazoo in a site formerly operated by the adjacent Seelye Ford car dealership. The collision shop’s previous manager, Kevin Hopp, will continue to lead the facility, according to the statement. Terms of the deal were not disclosed. The Boyd Group, which is based in Winnipeg, Canada and operates more than 300 non-franchised collision and glass repair shops, runs two other Gerber Collision facilities in the Kalamazoo area, according to a statement.
• Expansion: Rochester, Mich.-based Coastal Automotive, a tier-1 supplier of high-tech foams for the automotive and aerospace industries, will open a new manufacturing facility in Holland. The 300,000-square-foot facility, located at 900 Brooks Ave., is slated to begin operations in July, according to a statement. Coastal Automotive plans to hire 150 workers over the next three years as it ramps up production of its energy-absorbing and sound deadening foam products. The company chose West Michigan for the site of its new facility in part because its sister company, Coastal Container, is also based in Holland, according to the statement.
• Expansion: Charlotte, N.C.-based Tesa Tape Inc. plans to begin construction on a $20 million, 24,000-square-foot expansion of its facility at 324 S. Union Ave. in Sparta, according to a statement. The project will result in 15 new jobs. Tesa Tape will use the additional space to house “environmentally-friendly” coating, adhesive mixing and converting technology. The company aims to finish the project in summer 2017, according to the statement.
• Venture capital: Battle Creek-based Kellogg Co. will launch a $100 million in-house venture capital fund called Eighteen94 Capital. The fund aims to make minority investments in new ingredient, food, packaging and other technologies and “pursue next-generation innovation,” according to a statement. Eighteen94 Capital plans to target early-stage companies with a proven track record and established revenue. As well, the company said the fund will remain open to other companies, regardless of stage. Ten-year Kellogg executive Simon Burton will helm Eighteen94 Capital as its managing director. Kellogg partnered with Los Angeles-based Touchdown Ventures to manage the fund.