Displaying items by tag: Blackford Capital
In lawsuit, Blackford Capital platform company alleges seller misrepresented relationship with key customer ahead of 2016 acquisition
GRAND RAPIDS — The relationship between two companies involved in a 2016 acquisition appears to have soured, with both entities now pointing the finger at each other in federal court.
Blackford Capital closed on three acquisitions in 2017 through its two private equity finds and sold two companies in what founder and Managing Director Martin Stein said were “phenomenal exits.” Blackford Capital owns 11 companies, nine through the Michigan Prosperity Fund and two through its National Growth Practice. Stein expects the U.S. economy in 2018 to remain in “pretty good” shape, driving growth in Blackford’s portfolio companies. He doesn’t see any downturn ahead for at least another two years.
Here is the MiBiz Growth Report for Nov. 13, 2017:
• M&A: Wabash, Ind.-based Martin Yale Industries LLC, a portfolio company of Grand Rapids-based private equity firm LV2 Equity Partners LLC, acquired Dry-Lam LLC of Shawnee, Kan., according to a statement. The transaction marked the second bolt-on acquisition for Martin Yale, a manufacturer of print finishing, office and mailroom equipment. Dry-Lam is a distributor of laminating equipment and films to the office product and commercial print finishing industries. Terms of the deal were not disclosed, but Dry-Lam’s distribution center will be relocated to Martin Yale’s Indiana facility.
A portfolio company of private equity firm Blackford Capital bought its second firm in the book printing industry.
The active mergers and acquisitions market shows no signs of slowing down for the foreseeable future.
With three acquisitions and two exits under his belt in the last year and a half, Martin Stein continues to drive a steady pace of deal activity at Blackford Capital.
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Here is the MiBiz Growth Report for Sept. 5, 2017.
• M&A: U.K.-based Playtech acquired the technology, intellectual property and certain customer assets of ACM Group, whose CEO, Muhammad Al-Amin Rasoul, and management team are based in Grand Rapids. Playtech, a supplier of online gaming software, is listed on the London Stock Exchange and has 5,000 employees in 17 countries. Grand Rapids investment banking firm Charter Capital Partners served as financial adviser for ACM Group, a business-to-business market maker, dealer and broker in London. The deal is expected to close in early September. Terms include an initial upfront payment of $5 million, two staged payments based on the EBITDA of 2017 and 2018, and contingent consideration based on 2019 EBITDA. The total consideration for the transaction is capped at $150 million.
Private equity investments in Michigan grew in 2016 with an increase in both deals and the amount of capital invested.
Here is the MiBiz Growth Report for May 15, 2017:
• M&A: Muskegon-based KL Outdoor LLC will add a bevvy of new products to its business through a recent merger with GSC Technologies Corp., a Montreal-based manufacturer of kayaks and other plastic products. About three months ago, KL Outdoor — a manufacturer of kayaks, paddleboards and other watercraft — was purchased by New Water Capital LP, a private equity firm based in Boca Raton, Fla. The private equity firm plans to wrap GSC Technologies under the KL Outdoor brand, according to Dan Harris, vice president of sales at KL Outdoor. Harris expects the merger to expand KL Outdoor’s product offerings, as GSC manufactures a variety of products including outdoor furniture, totes and other related products.
An out-of-state platform manufacturing company owned by Grand Rapids-based Blackford Capital has acquired Oklahoma City, Okla.-based Custom Composites.
GRAND RAPIDS — Following careers in investment banking and family offices, two West Michigan professionals have struck out on their own.
Here is the MiBiz Growth Report for May 1, 2017.
• M&A: Kalamazoo-based Stryker Corp. acquired the assets of Charleston, S.C.-based Cactus LLC, a manufacturer of pharmaceutical waste management systems, according to a statement. Cactus products have been sold in the U.S. since 2012 and have been installed in more than 1,300 facilities. The products will become part of Stryker’s Surgical Safety business, a division of Stryker Surgical Instruments. Terms of the deal were not disclosed.
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GRAND RAPIDS — Blackford Capital has entered the baking business.
Here is the MiBiz Growth Report for April 3, 2017.
• M&A: Industrial and fastener distributor Manufacturer’s Supply Co. has signed an agreement to sell certain assets to Winona, Minn.-based Fastenal Co. (Nasdaq: FAST). Fastenal expected to close on the deal for Manufacturer’s Supply, or Mansco, at the end of March, after this report went to press. Terms of the deal were not disclosed. Hudsonville-based Mansco generated roughly $50 million in sales in 2016 from locations in Michigan, Alabama and Texas. It was founded in 1928. President Jim Mol has operated Mansco for the last 25 years. Mansco supplies a range of fastener products “with a particularly strong market position with commercial furniture OEMs,” a market to which Fastenal “has not meaningfully contributed in the past.”
Blackford Capital has entered the hotel business through a new acquisition under its National Growth Practice.
A mix of economic optimism and the availability of capital should yield another strong year for acquisitions in 2017.
zHere is the MiBiz Growth Report for Jan. 9, 2017.
• M&A: Grand Rapids-based Irwin Seating Co. signed a letter of intent to purchase American Seating Co.’s architectural fixed seating business in a deal expected to close in March 2017, pending due diligence. The business includes products for stadiums, auditoriums and other large venues. The company’s move to divest a “higher profile part of our business was an extremely difficult decision to make,” Chairman and CEO Ed Clark said in a statement announcing the transaction. The sale comes as American Seating seeks “to optimize its operations and resources in order to pursue significant growth opportunities” in its transportation seating business, where the company will continue to focus. American Seating intends to lay off 80 workers early this year as a result of the deal. However, a portion of that workforce may transition into roles at Irwin Seating, according to the statement. Terms of the deal were not disclosed.
Martin Stein, founder and managing director of Grand Rapids-based private equity firm Blackford Capital, was named Private Equity Professional of the Year in the 15th Annual M&A Advisor Awards.
Addressing a market vacuum: Investment firms pivot to hold companies longer, focus on legacy to court manufacturers
As waves of baby boomers continue to reach retirement age, many have faced the prospect of selling the manufacturing companies they’ve built over the years.
Martin Stein always noticed Grand Equipment Co. alongside I-196 when he drove through Hudsonville.
Here is the MiBiz Growth Report for Oct. 17, 2016:
• M&A: Grand Rapids-based Ranir LLC, a manufacturer of a variety of oral care products, has acquired Toronto-based BrushPoint, a maker of toothbrushes. In the deal, for which terms were not disclosed, Ranir will increase its product offerings and distribution footprint in the U.S., Canada and Europe. The BrushPoint acquisition comes on the heels of a deal in July of this year in which Ranir purchased the Rembrandt teeth-whitening brand from Johnson & Johnson Consumer Inc. Last month, the company also said it had purchased the 200,000-square-foot facility at 4701 East Paris Ave. SE where it had been a tenant for 20 years.
GRAND RAPIDS — After purposely avoiding deals in the automotive industry, private equity firm Blackford Capital has shifted its strategy with the acquisition of a Southeast Michigan supplier.
Grand Transformers Inc. in Grand Haven acquired Warner, N.H.-based Warner Power, a designer and manufacturer of electrical transformers and power systems.
Quality Aluminum Products Inc. — a maker of siding, gutters, roof edging and other exterior products for the residential housing industry — became the seventh portfolio company for the Grand Rapids-based Blackford Capital’s Michigan Prosperity Fund.
If you want to sell your business this year, you still have a pretty good chance of cutting a favorable deal as the seller’s market continues.
Blackford Capital plans to spend 2016 raising money for a new private equity fund that will seek to build off the success of its first fund and invest in Michigan-based companies.