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Published in Economic Development

MiBiz Growth Report: May 9, 2021

BY Sunday, May 09, 2021 01:20pm

Here's the MiBiz growth report for May 9, 2021.

M&A

  • Edgewater Bank branches have become part of United Federal Credit Union following federal regulatory and shareholder approvals of a merger between the two institutions. The four Edgewater Bank offices in Berrien County — plus loan offices in Greenville and Fremont — took on the United Federal Credit Union (UFCU) name when they opened on May 3. An Edgewater Bank office in Buchanan will close permanently and the staff will be consolidated into a nearby UFCU branch. About 5,600 Edgewater Bank customers are eligible to become UFCU members.
  • Manistique-based Mackinac Financial Corp. (Nasdaq: MFNC), the parent company of mBank, will be acquired by Green Bay, Wis.-based Nicolet Bankshares Inc. (Nasdaq: NCBS) under the terms of a definitive merger agreement that the companies signed in April. In the cash-and-stock deal valued at approximately $248 million, Mackinac shareholders will have a right to receive 0.22 shares of Nicolet’s common stock and $4.64 for each common stock of Mackinac. The deal, which is expected to close in the third quarter of 2021, equates to 18.3 times Mackinac’s earnings per share in 2020, according to a statement. The combined bank will have about $6.1 billion in total assets, $5.2 billion in deposits and $3.9 billion in loans. Currently, mBank operates 28 branch locations, including 10 in the Upper Peninsula, 10 in the northern Lower Peninsula, and one in Oakland County, plus seven in northern Wisconsin. Minneapolis, Minn.-based Piper Sandler & Co. served as financial adviser to Mackinac, while Detroit-based Honigman LLP served as the bank’s legal counsel. 
  • Byron Center-based Wonderland Tire Co. Inc. acquired Newport, Ky.-based Sumerel Tire Service Inc. in March, according to a statement. With the Sumerel deal, Wonderland Tire now operates 13 locations in six states with a capacity to produce more than 137,000 remanufactured tires per year at four manufacturing locations. Wonderland and Sumerel worked together over the last 24 years. The management team at Sumerel remains in place after the close of the deal, the terms of which were undisclosed.
  • Norton Shores-based Seabrook Plastics Inc., a molder of plastic parts primarily for the automotive and defense industries, recently finalized the sale of its company to fellow lakeshore-based plastic parts manufacturer Molding Solutions Inc. of Grand Haven. Seabrook Plastics, which was founded in 1994 and is headquartered at 1869 Lindberg Drive in Norton Shores, specializes in producing plastic parts with tight tolerances suitable for defense applications and is known in the industry for its advanced production methods. Seabrook will now be owned and managed by Molding Solutions, an ISO 9001:2015-certified plastics injection molder located at 1734 Airpark Drive. The company supplies clients in the automotive, furniture, appliances, consumer goods and construction industries.
  • Grand Rapids-based wood products manufacturer UFP Industries Inc. recently acquired the assets of Minneapolis-based Endurable Building Products LLC, which manufactures customized structural aluminum systems and products, such as deck framing and balconies. Endurable Building Products, which tallied around $15 million in sales for 2020, will maintain its current leadership. The acquisition is expected to allow UFP to provide a new set of services for its construction customers.

REAL ESTATE & DEVELOPMENT

  • The two-year redevelopment of the former Grand Rapids Christian High School building into a variety of uses, including 40 affordable apartment units, is now complete. The 75,000-square-foot building at 415 Franklin St. SE will also serve as the new headquarters for the Inner City Christian Federation, as well as worship space for Madison Church and a YMCA child development center. ICCF is managing the new apartments, which include four Americans with Disabilities Act (ADA) compliant units. The units — available for tenants living at or below 80 percent of area median income — are currently all leased out with families starting to move in, according to ICCF officials.
  • Spectrum Health plans to begin work soon on a new long-term care center along Fuller Avenue in Grand Rapids. The 130-bed facility would replace an aging Continuing Care center nearby on Fuller Avenue NE that Spectrum Health leases from Kent County. Planned for a nearly 10-acre site at Fuller Avenue NE and Cedar Street NE, the new 94,455-square-foot center would consist of 120 beds in private and semi-private rooms for long-term care patients who need 24-hour care, plus a 10-bed hospice unit. Spectrum Health plans to begin construction “right away” with a goal of completing the project by spring 2023, officials said. Plainfield Township-based Progressive AE Inc. designed the facility for Spectrum Health.

FINANCE

  • Coldwater-based Southern Michigan Bancorp Inc. (OTC Pink: SOMC), the parent for Southern Michigan Bank & Trust, completed a private placement of subordinate notes to accredited investors that raised $30 million. Southern Michigan intends to use the net proceeds to retire existing debt, support organic growth and for general corporate purposes. Performance Trust Capital Partners LLC served as the sole placement agent for the offering. Warner Norcross + Judd LLP was legal counsel to the company, and Hunton Andrews Kurth LLP served as legal counsel to the placement agent. Southern Michigan Bank & Trust has 13 offices in Branch, Calhoun, Hillsdale, Kalamazoo and St. Joseph counties with $1.07 billion in total assets as of March 31 and deposits of $925.6 million.
  • Lake Michigan Credit Union opened a new branch on Robbins Road in Grand Haven. The office is Lake Michigan Credit Union’s second in Grand Haven. The Grand Rapids-based credit union has 59 offices in Michigan with 406,861 members as of March 31 and $9.99 billion in assets, deposits of $8.59 billion, and $6.55 billion in loans, including $711.5 million in commercial loans, according to a financial report to federal regulators. The largest credit union in Michigan, Lake Michigan recorded quarterly net income of $53 million.

HEALTH CARE

  • BAMF Health Inc. committed to investing $30 million for a new headquarters and facility at the new Doug Meijer Medical Innovation Building under construction in Michigan State University’s Grand Rapids Innovation Park downtown. BAMF Health is working to move radiopharmaceuticals from the research lab to commercial use for molecular imaging used in precision treatment for cancer patients that can result in complete remission without side effects. Led by Dr. Anthony Chang, the company expects its molecular imaging and theranostics clinics to open in February 2022, creating 200 jobs in the life sciences sector.
  • Cornerstone University opened the Mary De Witt Center for Nursing, which will house a new nursing degree program that’s awaiting approval from the Higher Learning Commission in summer 2021. The 8,100-square-foot nursing facility was designed by C2AE Inc. Christman Co. was the contractor. 

NONPROFIT

  • The Fremont Area Community Foundation launched a nationwide search for its next president and CEO. The foundation retained Kittleman & Associates, a national executive search firm specializing in the recruitment of CEOs for nonprofit organizations, to lead the search and partner with a group consisting of representatives from across its four-county service area. Present CEO Carla Roberts plans to retire by the end of 2021.
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