Published in Economic Development

MiBiz growth report: August 19, 2019

BY MIBIZ STAFF Sunday, August 18, 2019 05:00pm

Here is the MiBiz Growth Report for Aug. 19, 2019:

M&A

  • Restaurant operator Meritage Hospitality Group Inc. announced a pair of deals to acquire the assets of 10 Wendy’s restaurants in Georgia and Texas. Meritage (OTCQX: MHGU) expects the deals to close in the third quarter of 2019, pending due diligence and other approvals. The company expects the stores to add $17.9 million in annual sales. Meritage generated $435.3 million in sales for all of 2018.
  • Markel Corp., a Richmond, Va.-based holding company for various insurance, reinsurance and investment operations, acquired a minority stake in The Hagerty Group LLC, a Traverse City-based insurer of classic cars and high-end automobiles. Markel disclosed the $212.5 million deal in a recent regulatory filing and conference call to discuss its second-quarter results. The deal was first reported by The Ticker in Traverse City, which noted Markel acquired a 25-percent stake in The Hagerty Group.
  • Motus Integrated Technologies LLC, a Holland-based Tier 1 and Tier 2 auto supplier, has signed a definitive agreement to buy Southfield-based Janesville Fiber Solutions, a division of Milwaukee, Wisc.-based Jason Industries Inc. Janesville Fiber produces high-performance engineered acoustical and thermal fiber solutions for a variety of automotive uses. Motus expects the deal to close late in the third quarter. Terms were not disclosed.
  • Office furniture maker Trendway Corp., a fixture in the Holland business community for five decades, was acquired by Fellowes Brands, an Itasca, Ill.-based manufacturer of office and technology accessories. Trendway will continue to operate from Holland, led by current President Bill Bundy. Chairman Don Heeringa, whose family bought the 51-year-old company in 1973, plans to retire. Terms were not disclosed. 
  • A subsidiary of Kalamazoo-based Stryker Corp. (NYSE: SYK) signed a definitive agreement to acquire the shares of TSO3 Inc. (TSX: TOS), a Quebec-based developer of sterilizing equipment for medical devices, according to a statement. Stryker’s 9402-4874 Québec Inc. subsidiary will pay 43 cents a share for the outstanding shares of TSO3. The deal, valued at $57.1 million, is subject to court approval in Canada and approval by two-thirds of voting shareholders at TSO3.
  • An affiliate of Grand Rapids-based Universal Forest Products Inc. (Nasdaq: UFPI) acquired the operating assets of Northwest Painting Inc. of Missoula, Mont. The deal includes affiliates of Northwest Painting that do business as Northwest Factory Finishes in Bonner, Mont., and as PacificNorthwest Factory Finishes in White City, Ore. Northwest Painting supplies pre-painted building materials, including composite lap siding, soffit, panels and trim, to the western U.S. The company has manufacturing facilities in Bonner and White City, and anticipated annual sales of about $14 million. Terms of the deal were undisclosed.
  • Sparta-based publisher Great American Media Services has acquired three sports industry titles from Ithaca, N.Y.-based MomentumMedia, according to a statement. Coaching Management, Athletic Management and Training & Conditioning will join the sports group at publisher Great American Media Services. The company plans to combine Coaching Management and Athletic Management into a new title, Coach and Athletic Director. Terms of the deal were not disclosed.

Expansion

  • Acrisure LLC, the fast-growing Caledonia-based insurance brokerage, announced it would move its global headquarters to the new Studio Park development in downtown Grand Rapids. Acrisure, which plans to move about 400 jobs from the suburbs into downtown Grand Rapids, will occupy space in a $30 million office tower that Olsen Loeks Development LLC announced in March. The developer expects construction to start this year, with completion anticipated in 2020. Through an aggressive M&A strategy, Acrisure has grown to become one of the largest insurance brokers in the world with 450 locations in 37 states in the U.S. and 14 offices globally, and revenues of more than $1.7 billion.
  • Automotive supplier GHSP plans to expand and move its headquarters and engineering laboratory to the Holland Technical Center. The company, a division of Grand Haven-based JSJ Corp., has leased 120,000 square feet of office space and 35,000 square feet of lab space at the facility located at South Waverly Road and East 32nd Street. The move nearly doubles the company’s existing office and lab spaces in Grand Haven.
  • Kalamazoo area-based Consumers Credit Union recently began construction on a new branch on 54th Street SW in Wyoming, its sixth office in the Grand Rapids area. The two-story, 6,145-square-foot office should take six months to complete and features a larger floorplan to support the credit union’s growth in the market. Consumers Credit Union presently has 21 offices in a market that stretches across Western Michigan, including Kalamazoo, Battle Creek, Grand Rapids and Holland. The credit union at the end of the second quarter had more than 96,000 members with $1.15 billion in assets.
  • United Federal Credit Union selected Pearson Construction Co. in Benton Harbor as general contractor for construction and renovation work on its new corporate headquarters building. The approximately 80,000-square-foot building on Hilltop Road in St. Joseph was previously owned by Whirlpool Corp. United Federal bought the building in April and will use the new headquarters to support long-term corporate growth plans and space for current employees. Construction and redesign is expected to begin this fall and will take 12 months to complete. United Federal Credit Union has more than 176,000 members in Michigan, Arkansas, Indiana, Nevada, North Carolina and Ohio.
  • Autism Centers of Michigan opened a second location in West Michigan on 68th Street SE in Kentwood. The 3,915-square-foot location recently completed renovations to add space to serve different age groups and ensure safety. Autism Centers of Michigan has 10 locations across the state and opened its first West Michigan location a year ago on East Paris Avenue SE in Grand Rapids.

Closing

  • The owners of Russo’s International Market plan to close the store after 115 years in West Michigan. The building had been on the market since early 2019, when co-owner Phil Russo told MiBiz that the company was “in the process of consolidating our square footage” because it did not need to use the entire 18,470-square-foot building, which is located at 2770 29th St. SE in Grand Rapids. Phil Russo declined to comment on the future use of the building, citing a non-disclosure agreement. According to the Michigan Liquor Control Commission records, Mega-Bev GR 29 LLC filed documents on June 24 to transfer liquor licenses from Russo’s to its entity. The company is an affiliate of Mega-Bev, an operator of specialty adult beverage stores with locations in Battle Creek, Lansing, Marshall, Kalamazoo, Hastings and Portage, according to its website.

Executive Transition 

  • SpartanNash Co.’s present chairman and former CEO, Dennis Eidson, returned to running the company following the abrupt resignation of President and CEO David Staples. The Byron Center-based grocery wholesaler and retailer said Eidson would serve as interim president and CEO, effective immediately, until a new chief executive is hired. Eidson, who previously served as SpartanNash president and CEO from 2008 to 2017, will continue as board chairman. SpartanNash appointed Staples CEO in March 2017. He previously served as president and chief operating officer and worked with Eidson to orchestrate the transformational $1.3 billion merger of Spartan Stores with Nash Finch in 2013.
Read 369 times Last modified on Friday, 16 August 2019 08:47
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