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Published in Economic Development

MiBiz Growth Report: June 20, 2021

BY Sunday, June 20, 2021 02:13pm

Here's the MiBiz Growth Report for June 20, 2021.

M&A

  • Grand Rapids-based Lake Michigan Credit Union will gain a larger presence along Florida’s Gulf Coast with the proposed acquisition of Pilot Bancshares Inc., the parent company of Pilot Bank and National Aircraft Finance Co. (NAFCO), which specializes in financing aircraft. Under the deal, Lake Michigan Credit Union would add six more offices in the Tampa Bay area, and more than $656 million in assets and $511.2 million in deposits. The deal should close in the fourth quarter, pending approvals from regulators and Pilot Bancshares shareholders. Investment banking firm Donnelly Penman & Partners Inc. advised Lake Michigan Credit Union on the transaction, and the law firm Honigman LLP served as legal counsel. 
  • Grand Rapids-based Continuum Ventures LLC, the family investment company of Doug and Maria DeVos, invested in Harbor Springs-based Walstrom Marine Inc. along with St. Clair Shores-based Colony Marine Sales and Service Inc. Walstrom Marine, a yacht sales and service company and marina operator, has locations in Harbor Springs, Traverse City, Bay Harbor, Charlevoix and Cheboygan and employs more than 70 people. The company sells yachts made by Tiara Yachts, Pursuit Boats, Chris Craft, Sea Ray, Lund, Crest, and NauticStar. Under the deal, Continuum Ventures took a majority position in the 75-year-old Walstrom Marine while  Colony Marine Sales assumed a minority ownership position. Terms of the deal were undisclosed.
  • Jackson-based CMS Energy Corp. plans to sell EnerBank USA, a Salt Lake City-based bank that specializes in home improvement lending nationwide, to Regions Bank, a subsidiary of Regions Financial Corp. in Birmingham, Ala. The companies expect the $960 million deal to close in the fourth quarter, pending regulatory approval. The divestiture of the “non-core asset” will allow the parent company of Consumers Energy to invest in its core energy business, including clean energy, according to CMS President and CEO Garrick Rochow. Goldman Sachs & Co. LLC served as financial adviser to CMS Energy, which was advised by the law firm of Skadden, Arps, Slate, Meagher & Flom LLP.
  • Escanaba-based TEAM Wireless has signed an agreement to acquire Canton-based Cellular & More, an independent Verizon authorized retailer with stores throughout southern Michigan. The deal, expected to close July 1, includes 15 locations, including stores in Hastings, Kalamazoo, Charlotte, Lansing and Jackson, according to a statement. The acquisition is the fifth for TEAM Wireless in the last 11 years. With the addition of the Cellular & More locations, TEAM Wireless will own and operate 63 retail locations and employ more than 400 people.
  • Kamps Inc., a Walker-based pallet recycler, signed a definitive purchase agreement to acquire Buckeye Diamond Logistics Inc., a South Charleston, Ohio-based packaging solutions provider. Buckeye maintains 20 onsite locations and employs 1,100 full-time people. Terms of the deal, which is expected to close at the end of the month, were not disclosed. Kamps has now made three strategic acquisitions in 2021, and six after selling a majority stake to Los Angeles-based private equity firm Freeman Spogli & Co. at the beginning of 2020.
  • Caledonia-based producer of disposable surgical products Aspen Surgical Products Inc. acquired Stork, a division of Briggs Healthcare, a Des Moines, Iowa-based maker of branded sterile disposable obstetric products. The acquisition “strengthens Aspen’s broad portfolio of medical and surgical disposables sold into the acute care market,” the company said in announcing the deal. Terms of the transaction, the fifth for Aspen in 18 months, were undisclosed.

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Expansion

  • Houston, Texas-based WhiteWater Express Inc., an operator of more than 40 express car washes, has opened its first facility in Michigan with a new location at 5401 Beckley Road in Battle Creek, according to a statement. WhiteWater Express, which is backed by San Francisco-based private equity firm SkyKnight Capital, plans to develop four additional express car washes in Michigan by the end of 2021.
  • Midwest Fastener Corp. plans to create up to 90 jobs as part of a $10.8 million investment to expand its headquarters and distribution center in Portage and operations in Decatur. The manufacturer and distributor of nuts, bolts, anchors, deck and drywall screws and specialty fasteners received a $500,000 Michigan Business Development Program performance-based grant from the Michigan Economic Development Corp. to support the expansion. An acquisition last year created a need for additional office and distribution space. The new jobs will involve positions at the company’s headquarters as well as skilled and unskilled laborers at its warehouse and distribution center. 
  • Adhesives, sealants and coatings manufacturer Seal Bond Inc. is planning to relocate its operations and headquarters from Spring Lake Township to a new 200,000-square-foot facility planned for vacant property at 1251 E. Mt. Garfield Road along US-31 in Norton Shores. The site is owned by Kentwood-based Grooters Land Development LLC.

Health care

  • Grand Rapids-based Spectrum Health has joined several health systems around the country that committed to increasing purchases from local minority- and women-owned businesses. The dozen U.S. health systems that signed on to Washington, D.C.-based Healthcare Anchor Network’s “Impact Purchasing Commitment” will increase spending by at least $1 billion over five years with minority- and women-owned businesses, and enterprises that are owned by employees, cooperatives and nonprofits. The health systems also agree to adopt sustainable procurement goals for goods and services that “minimize damage to health and the environment.” 
  • Hope Network will close a long-term housing center in Coldwater for people with severe disabilities as a new fee schedule is set to take effect under recent automotive no-fault insurance reforms. The 2019 no-fault reform law imposes a 45-percent reduction in reimbursement payments from auto insurance carriers to facilities that care for people who were traumatically injured in crashes and require ongoing care. The change is set to take effect on July  The Grand Rapids-based Hope Network said that 10 of the 12 residents at the Coldwater care home are crash survivors. The pending reimbursement cut makes operating the center financially unsustainable, according to Hope Network officials.

Banking

  • United Bank of Michigan plans to expand to the lakeshore market with the opening of a branch office next year in Holland. The branch will go into the $28 million, five-story Towers on River mixed-use development on South River Avenue that’s now under construction. The office will become the Grand Rapids Township-based United Bank’s 13th office in West Michigan and first on the lakeshore. Plans for the location come after United Bank previously opened a loan office in Holland in October 2019 that built a customer base. The new Holland location will open in the summer of 2022 as United Bank’s regional headquarters.
  • Consumers Credit Union has started construction on a new office in Muskegon that will expand its presence along the lakeshore. The office on East Sherman Boulevard should open in early 2022. Holland-based GDK Construction Co. is the contractor and Kalamazoo-based Bosch Architecture Inc. designed the office. The Kalamazoo-based Consumers Credit Union presently has two offices in the lakeshore market in Holland and a branch in South Haven. A Grand Haven office now under construction opens this summer.
Read 2293 times Last modified on Monday, 21 June 2021 11:22
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