Here is the MiBiz Growth Report for Nov. 14, 2016:
• M&A: Byron Center-based SpartanNash Co. (Nasdaq: SPTN) signed a definitive agreement to acquire certain assets of Caito Foods Service Inc. and its Blue Ribbon Transport business for about $217.5 million in cash, according to a statement. The deal includes an earn-out potential of an additional $12.4 million if the business hits performance targets. SpartanNash, which expects the transaction to be accretive to 2017 earnings, will fund the deal with proceeds from its lending facility. Subject to regulatory and other approvals, the deal is anticipated to close in early January 2017. The combined Caito and Blue Ribbon Transport businesses generate annual revenues exceeding $600 million. Caito supplies fresh fruit and vegetables to groceries and distributors in 22 states in the Southeast, Midwest and Eastern regions of the country. The company has facilities in Indiana, Ohio and Florida. SpartanNash was advised on the deal by Deutsche Bank (financial) and Morgan Lewis (legal).
• M&A: Educational furniture maker Vanerum Stelter LLC of Grand Rapids has been acquired by MooreCo Inc., a Temple, Texas-based office furniture manufacturer. In acquiring Vanerum Stelter, MooreCo will add a range of furniture for the educational market, which includes classrooms and makerspaces, according to a statement. Project management services, products and customer service will now be supported by MooreCo. Terms of the deal were not disclosed. Both companies entered a strategic partnership in April 2016, prior to the acquisition.
• M&A: Zeeland-based Extol Inc. has sold its ErgoStation product line of height-adjustable tables and machine bases to Indiana-based Precise Mold & Plate, according to a statement. Extol, a manufacturing and engineering company that designs and builds plastic joining equipment, sold the company in a bid to better focus on its core plastic joining products, according to a statement. Calder Capital LLC, a Grand Rapids-based business brokerage, represented Extol in the transaction. Terms of the deal were not disclosed.
• M&A: St. Ignace-based Star Line Mackinac Island Ferry will purchase certain assets of Arnold Transit Co. as the passenger ferry service ceases operations. The deal includes five classic ferries, one freight boat, four docks including the main dock on Mackinac Island, one boatyard, and parking lots and ticket booths in Mackinaw City and St. Ignace, according to a statement. Terms of the deal were not disclosed.
• M&A: Lakewood, Colo.-based Mesa Laboratories Inc. (Nasdaq: MLAB) acquired certain assets and liabilities from Mydent International Corp. of New York. Mesa will operate the mail-in dental sterilizer testing business from its office in Traverse City, according to a statement. The deal is expected to add $200,000 in revenues and be accretive for Mesa within the first 12 months. Terms of the deal were not disclosed.
• M&A: Allen Park-based Belle Tire Distributors Inc. acquired a franchise location in Traverse City, according to a report in Crain’s Detroit Business. Terms of the deal were not disclosed.
• Expansion: Nestle Waters North America plans to invest $36 million into an expansion at its Ice Mountain bottling plant in Mecosta County, roughly 50 miles north of Grand Rapids. The Stamford, Conn.-based Nestle Waters expects to finish construction of the 80,000-square-foot expansion in spring 2017, along with a new production line, according to a statement. An additional production line is scheduled to begin in 2018. Company executives cite consumer demand as a primary driver for the expansion.
• Expansion: Vickers Engineering Inc. plans to invest $5.1 million in new equipment and facility improvements at its headquarters in New Troy, 15 miles northeast of New Buffalo in Southwest Michigan. The company, which offers precision machining and prototyping services for the automotive, energy and consumer products industries, expects to hire 53 additional workers as a result of the investment, according to a statement. Vickers Engineering was awarded a $160,000 performance-based grant from the Michigan Economic Development Corp. The Cornerstone Alliance, an economic development organization serving Berrien County, helped facilitate the performance-based grant and investments.