Here is the MiBiz Growth Report for Feb. 20, 2017.
• M&A: AMI Entertainment Network LLC in Grand Rapids has acquired NSM Music Group Ltd., a Leeds, U.K.-based manufacturer of jukeboxes. The deal for NSM Music marks the first overseas expansion for AMI, a provider of digital jukeboxes and other products for the nightclub and bar industry, according to a statement. Founded in 1951 in Germany, NSM will maintain its independent branding and headquarters. General Manager Martin Agabeg will report to AMI President Mike Maas. Terms of the deal were not disclosed. Going forward, AMI plans to invest in NSM and enhance the company’s products and service, according to a statement.
• M&A: Southland Auto Wash of Wyoming, Mich. has been acquired by Tucson, Ariz.-based Mister Car Wash, according to a statement. The deal includes six car wash locations in the metro Grand Rapids area and gives Mister Car Wash an entry into the state. Terms of the deal were not disclosed. Southland Enterprises Inc., which does business as Southland Auto Wash, was founded by the Ellis family in the 1950s. President Mark Ellis said Southland pursued a sale with Mister Car Wash because the firm “would be respectful of our legacy and community.” Mister Car Wash operates 212 car wash facilities and 34 express lube centers in 20 states.
• M&A: Kalamazoo-based accounting firm Seber Tans PLC has acquired Ullrey & Company PC, also of Kalamazoo, according to a statement. Jack Ullrey will serve as a director of Seber Tans. The combined firm employs 35 people. Terms of the deal were not disclosed.
• M&A: Holland-based Summit Properties, a boutique brokerage focused on luxury and waterfront properties, has been acquired by the Coldwell Banker Schmidt Family of Companies headquartered in Traverse City, according to a statement. Summit Properties, which employs seven people at its offices at 691 Ottawa Beach Rd. in Holland, will operate as Coldwell Banker Woodland Schmidt. Terms of the deal were not disclosed.
• M&A: Grand Rapids-based Meritage Hospitality Group Inc. (OTCQX: MHGU) signed three independent asset purchase agreements to acquire 69 Wendy’s locations throughout the Midwest and Mid-Atlantic regions, according to a statement. The acquisitions are still subject to due diligence and are expected to be completed in the first and second quarters of this year. The company plans to acquire all the locations for $111.8 million, a Meritage spokesperson said in an email to MiBiz. The company is raising $10.5 million in equity from qualified investors to support the acquisitions, according to a regulatory filing.
• M&A: High-end luxury carpet manufacturer Scott Group Custom Carpets LLC of Grand Rapids has acquired cross-town rival PWV Studios Ltd., a maker of luxury carpets for business aviation, commercial and high-end residential markets. According to a statement, the acquisition will allow Scott Group, also headquartered in Grand Rapids, to expand its product line into the business aviation market and offer additional textures and patterns. Terms of the deal were not disclosed.
• M&A: Shoreline Federal Credit Union in North Shores plans to merge into Farmington Hills-based Community Choice Credit Union. Shoreline Federal has a single location in Norton Shores with assets of $17.3 million as of Dec. 31, and 2,641 members. The credit union had a net loss of $41,088 in 2016, which followed a net loss of $740,395 in 2015, according to financial reports filed with the National Credit Union Administration. The deal was listed in a monthly activity report issued by the Michigan Department of Financial and Insurance Services.
• M&A: The Betten-Baker auto dealer group has expanded to Big Rapids with the acquisition of Gary Trimarco Chevrolet Buick GMC. According to a statement, co-owners Bryan Betten and Chris Baker purchased the store from Gary and Lynn Trimarco. The Big Rapids dealership will be Betten-Baker’s eighth store. Terms of the deal were not disclosed. Betten-Baker took over operations immediately.
• M&A: Muskegon-based KL Outdoor LLC, a manufacturer of kayaks, paddleboards and other watercraft, has sold to private equity firm New Water Capital LP of Boca Raton, Fla. The deal closed at the end of 2016. The transaction occurred after an unnamed Detroit-based investor group decided to sell its stake in KL Outdoor, the maker of Sun Dolphin and Evoke brands of watercraft, executives told MiBiz. Birmingham-based Amherst Partners LLC served as the financial adviser to KL Outdoor, which rebranded from Ameriform Inc. in 2016. Terms of the deal were not disclosed. Executives told MiBiz KL Outdoor will maintain its manufacturing facility in Muskegon. The company employs 500 people.
• M&A: Carbide Specialties Inc. of Grand Rapids, a maker of cutting tools for the woodworking industry, has been acquired by Riverside Tool Corp. of Elkhart, Ind. Cofounder Paul Lidgard is retiring and transitioning out of the business. Tom Roth, the other cofounder of Carbide Specialties, will remain with the company. The manufacturer will continue to operate from its facility in Grand Rapids. Terms of the deal were not disclosed. Riverside Tool is owned by Techniks Industries, an industrial tooling manufacturer based in Indianapolis.
• M&A: American HealthCare Staffing Association LLC of Traverse City, which does business as American HealthCare Services Association (AHSA), was acquired by New York City-based BelHealth Investment Partners LLC, a private equity firm. AHSA was founded in 2003 as a provider of clinical and non-clinical temporary employees. Industry veteran Tim Cerny will serve as president of AHSA, according to a statement. Terms of the deal were not disclosed.
Executives at BelHealth said the PE firm invested in AHSA to capitalize on “exponential growth over the next several years” in the vendor management business and help lead the company through its next growth phase.
• Expansion: Consumers’ increased appetites for cage-free eggs has spurred a $2 million expansion project for Poultry Management Systems Inc. in Lowell. The producer of egg handling, environmental control, monitoring and other equipment and software plans to hire 27 workers as a result of the project, which includes building a new 15,000-square-foot facility at 890 OE Bieri Industrial Dr. The Right Place Inc., a Grand Rapids-based economic development firm, assisted the company with its expansion project, coordinating a $175,000 performance-based grant from the Michigan Economic Development Corp. and an industrial tax abatement from Vergennes Township.
• Expansion: LorAnn Oils Inc., a Lansing-based manufacturer and distributor of premium flavorings and oils, plans to invest $1.5 million to expand in Lansing and create nine new jobs. The Lansing Brownfield Redevelopment Authority approved an 11-year extension of the company’s original brownfield plan from 2005, according to a statement.