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MiBiz Growth Report: May 29, 2018

BY MiBiz Staff Sunday, May 27, 2018 09:31pm

Here is the MiBiz Growth Report for May 29, 2018.

  • M&A: Sparta-based Old Orchard Brands LLC agreed last month to a deal with Rougemont, Quebec-based Lassonde Industries Inc. valued at $146 million, according to a statement. The value of the cash deal could increase another $10 million if the company meets certain financial targets over the next two years. Old Orchard was founded in 1985 by Mark Saur, who currently serves as its president and CEO. The company manufactures shelf-stable fruit juice products and frozen juice concentrates and employs about 100 people. The operation generated sales of $103.3 million last year. Old Orchard’s adjusted earnings before interest, taxes, depreciation, and amortization were $15.8 million for the 2017 fiscal year, according to a statement. Lassonde also plans to acquire the property on 12 Mile Road and M-37 in Sparta that houses Old Orchard’s manufacturing operations for $4 million, pending regulatory conditions. If the purchase does not go through, Lassonde said it intends to execute a long-term lease for the property. New York City-based Sawaya Partners LLC served as the financial adviser to Old Orchard in the deal.
  • M&A: Custom cabinet maker Woodways Industries Inc. of Grand Rapids has been acquired by Italy-based Zordan Group, according to a statement. Zordan Group finalized the deal for Woodways after starting to acquire shares in the company in 2015. The Italian firm is now the sole owner of Woodways, which became a unit of Zordan Group last year. The transaction for the West Michigan company was valued at nearly $2.3 million. Including corporate property, the total value was more than $3.2 million, according to a report in Woodwork Network. Woodways employs 37 people and operates a showroom on 28th Street in Grand Rapids and a manufacturing facility on Construction Court in Zeeland Charter Township. The company specializes in customizable cabinet designs for the residential and commercial markets.
  • M&A: Private equity firm Rockland Capital LLC — the owners of Wolverine Power Holdings LLC — said it planned to sell the 125-megawatt Michigan Power facility in Ludington to Osaka Gas USA, a wholly owned subsidiary of Osaka Gas Co. Ltd., according to a statement. The Michigan Power cogeneration plant, which was built in 1995, has a long-term power purchase agreement with Consumers Energy Co. for its electrical output. The facility also sells steam and compressed air to the nearby Occidental Chemical Corp. in Ludington. According to a report in Reuters, the transaction is valued at $93 million. Osaka Gas Co. is a Japanese producer and supplier of natural gas for the Osaka, Kyoto, and Hyogo areas. The company generated $11.01 billion in revenue last year, according to a statement. Wolverine Power purchased the facility at the end of 2015 from Boston-based ArcLight Capital Partners LLC, as MiBiz reported at the time.
  • M&A: Tampa, Fla.-based Nortrax Inc., a subsidiary of John Deere, sold seven John Deere Construction and Forestry stores to Dubuque, Iowa-based McCoy Group Inc., according to a report in Business North. The deal included the Escanaba store in the Upper Peninsula, as well as locations in Minnesota and Wisconsin. The company will now do business as McCoy Construction & Forestry.
  • M&A: Irving, Texas-based Darling Ingredients Inc. (NYSE: DAR) acquired almost all of the assets of Omaha, Neb.-based Kruger Commodities Inc., which operates a protein conversion facility in Hamilton, Mich., according to a statement. The company processes by-products from the meat, poultry and restaurant industries. Terms of the deal were not disclosed.
  • M&A: Louisville, Ky.-based Long John Silver’s acquired 76 restaurants from Jasper, Ind.-based franchisee ServUS Inc., including unspecified locations in Southwest Michigan. Terms of the deal were not disclosed. The quick-service seafood company is in the process of shifting from a franchised system to company-owned stores, according to a statement. The deal also will help the company make additional progress on its brand revitalization program.
  • Expansion: Ada-based Sietsema Cider LLC has leased 1,350 square feet of space at 70 N. Main Street in Cedar Springs for a satellite tasting room. The location, which is nearly across the street from Cedar Springs Brewing Co., will offer the cidery a more visible location than its current tasting room and production facility on 2 Mile Road in Ada, according to founder Andy Sietsema. Sietsema Cider, which is leasing the space from craft beverage canning equipment maker Microcanner LLC, will pursue a microbrewery and distillery license in Cedar Springs so it will be able to offer the full complement of alcoholic beverages, he said. The new location will also have a small kitchen for heavy appetizers and quick eats.
  • Expansion: Kayak manufacturer KL Industries LLC is working with Grand Rapids-based development firm Robert Grooters Development Co. to build a 490,000-square-foot facility at 2420 Remembrance Drive in Muskegon’s Port City Industrial Park. The developer tentatively expects to start construction on the project in June. The city of Muskegon purchased the 22.7-acre parcel for $340,500 with the intention of luring a “significant” expansion from a light industrial manufacturer, as MiBiz first reported in April.
  • Expansion: Norton Shores-based TGW Systems Inc., a global manufacturer of material handling equipment and a provider of logistic solutions, will expand its U.S. footprint with offices in Seattle and Atlanta. The new locations will help the company better serve customers on the East Coast and West Coast, according to a statement. The company has a manufacturing plant in Norton Shores and a sales office in Grand Rapids.
  • Expansion: Arlington, Va.-based cybersecurity firm SMFS Inc., which does business as GRIMM, plans to create 27 high-tech jobs and invest $621,000 in Sparta, a village located north of Grand Rapids. The company cited West Michigan’s workforce as well as support from The Right Place Inc. and the Michigan Economic Development Corp. as key drivers behind the expansion. The MEDC is supporting the expansion project with a $216,000 Michigan Business Development Program performance-based grant, according to a statement. The Sparta “cybersecurity lab” aims to help the company work closer with the advanced manufacturing, automotive and defense sectors in the region. 

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