Published in Economic Development

MiBiz Growth Report: September 14, 2019

BY MIBIZ STAFF Saturday, September 14, 2019 08:11pm

Here is the growth report for September 14, 2019.

M&A

  • Grand Rapids-based Founders Brewing Co. is selling a majority stake in the business to an affiliate of Madrid-based Mahou-San Miguel Group. Under the deal, Founders Brewing, the 14th largest brewery in the U.S. as of 2018, will be 90-percent owned by Spain’s Best Beer Inc. The Mahou affiliate currently owns a 30-percent stake in the company. Founders Brewing co-founders Mike Stevens and Dave Engbers each will retain a 5-percent stake in the brewery, according to state filings. The deal is expected to close in January 2020. MiBiz broke news of the deal on Aug. 29.
  • Stryker Corp. said it signed a definitive agreement to acquire Mobius Imaging LLC, a Massachusetts-based advanced imaging technology company, for about $370 million in cash. The all-cash deal for Mobius Imaging includes sister company GYS Tech LLC that’s developing surgical robotic systems, according to a statement. Under the terms of the deal, Stryker (NYSE: SYK) could pay another $130 million in contingent payments tied to development and commercial milestones. Stryker expects the acquisition to close in the fourth quarter.
  • Charlotte-based Spartan Motors Inc. (Nasdaq: SPAR) continues to build its presence on the West Coast with the acquisition of Carson, Calif.-based Royal Truck Body, a designer, manufacturer and installer of service truck bodies, according to a statement. Spartan Motors pursued the deal as part of its strategic plan to drive EBITDA margin, increased revenue and geographic expansion. Terms of the deal were undisclosed, but Spartan Motors said it expected the acquisition will be accretive to earnings on an annual basis in 2020. Spartan Motors was advised on the deal by Grosse Pointe, Mich.-based Donnelly Penman & Partners Inc. and the Grand Rapids-based law firm of Varnum LLP
  • Jenison-based Ottawa Kent Insurance Agency Inc. was acquired by Traverse City-based High Street Insurance Partners Inc., an insurance agency platform formed last year by Huron Capital Partners LLC, a Detroit-based private equity firm. The acquisition was the sixth since June 2018 for High Street Insurance. The 40-year-old Ottawa Kent Insurance serves more than 10,000 clients through offices in Jenison, Sparta, Holland and Byron Center. Principals in the agency remain active in the business and retained their positions, according to a statement. Terms of the deal were undisclosed.
  • Grand Rapids-based restaurant operator Meritage Hospitality Group Inc. has added to its growing portfolio of Wendy’s restaurants with the acquisition of five Texas locations. The deal for the stores in the cities of Odessa and Midland in Texas fit with the company’s five-year growth strategy and expands its portfolio to 400 Wendy’s locations, according to a statement. Meritage (OTCQX: MHGU) expects the acquired restaurants will add about $9.1 million in annual sales and for the deal to be accretive to earnings. Terms of the deal were not disclosed. 
  • Workplace interiors dealer Custer Inc. of Grand Rapids has acquired Fort Wayne, Ind.-based Productive Business Interiors. PBI, which was founded in 1982, will now operate under the Custer name in the Indiana market with expanded services and products. Custer, a family-owned Steelcase Inc. dealer partner, has served the greater Grand Rapids area for more than 38 years. The company also maintains a presence in Kalamazoo, and recently announced the opening of its sixth showroom in Michigan in Holland, which will open in October. The transaction for PBI closed on Sept. 1. Terms of the deal were not disclosed.
  • Mobile video technology manufacturer Pro-Vision Video Systems Inc. of Byron Center has been acquired by JMC Capital Partners, a Boston-based private equity fund. Founded in 2003, Pro-Vision designs, produces and installs rear vision and video recording systems, body cameras and video management software for commercial, law enforcement and transit customers. Terms of the deal were not disclosed. JMC Capital Partners focuses its investment strategy on companies with $5 million to $35 million in revenues in the lower middle market industrial product and technology sectors. 
  • Grand Rapids-based Revue Holding Co., the parent company of MiBiz, has sold its Revue West Michigan title to Serendipity Media LLC, a Grand Rapids-based custom publisher and marketing firm. Revue West Michigan produces a free monthly arts and entertainment guide that’s available at more than 500 locations across the region, including in Grand Rapids, Kalamazoo, Battle Creek and along the lakeshore. The publication joins Serendipity’s other titles, which include West Michigan Woman, After School Today, Groups Today, Teach & Travel, Travel Advisor and Broadway Spotlight. As part of the sale, Revue Holding will change its name to MiBiz Inc.
  • Pi Optima Manufacturing Inc., a Zeeland-based machine shop that supplies the aerospace and automotive industries, is under new ownership. Kyle Snyder, general manager of the company since 2017, bought Pi Optima from previous investor Jason Beecham, according to a statement from Calder Capital LLC, a Grand Rapids-based M&A firm. Huntington Bancshares Inc. provided financing for the transaction. Terms of the deal were not disclosed. 
  • Wyoming, Mich.-based Midstate Security Co. LLC, an electronic security and monitoring systems firm, has been acquired by Santa Ana, Calif.-based Allied Universal Corp., a security and facilities services firm serving clients across North America, according to a statement. Midstate Security generated more than $20 million in revenues last year and employs 89 people. Terms of the deal were not disclosed. Midstate Security was advised on the deal by Vertex Capital Corp. and Grand Rapids-based law firm Rhoades McKee PC.
  • The assets of Grand Rapids Hydroponics Inc. were acquired by Denver-based GrowGeneration Corp., a chain of specialty hydroponics and organic garden centers. The company aims “to own and operate GrowGen branded stores in all the major legalized cannabis states in the U.S. and Canada,” according to a statement. The deal for Grand Rapids Hydroponics marks GrowGen’s seventh acquisition in 2019, adding $8 million in revenue to the company, according to a statement. Terms of the deal were not disclosed. 
  • Grand Rapids-based TG Manufacturing LLC, a fully-integrated metals manufacturing company, acquired Turnkey Fabrication LLC, an integrated fabrication shop in Grand Rapids with laser, CNC brake press, machining, assembly and welding process capability. Turnkey Fabrication operates from and is headquartered in a 55,000-square-foot facility in Grand Rapids and supplies a diverse group of customers in the gaming, industrial laboratory and defense industries. Terms of the deal were not disclosed.

Expansion

  • Hoekstra Electrical Services LLC relocated its headquarters to Holland after outgrowing its space in nearby Hamilton. The company recently completed work on a $2 million, 25,000-square-foot production facility at 80 W. 64th Street in Holland, according to a statement. Its 70 employees relocated to the new facility earlier this summer. The affiliated J. Paul Enterprises LLC acquired the property in August 2018 for $425,000 from Genzink Development Corp., according to property records. Construction began in 2018 and was completed by Zeeland-based Midwest Construction Group Inc. earlier this summer.
  • Engineering consulting firm Hubbell, Roth & Clark Inc. plans to relocate from its 3,500-square-foot office in the American Seating building to a 7,000-square-foot office at 1925 Breton Road SE in Grand Rapids to support its continued growth, according to Colliers International. The 44,000-square-foot Breton Road building, owned by an affiliate of Rockford Construction Co., was formerly a medical office space. 
  • After operating its brewing facility in a 700-square-foot space in Grandville since 2017, the owners of Arvon Brewing Co. say they are ready to grow the business. Before the end of this year, Arvon plans to move to a 5,000-square-foot building at 1006 S. Division Ave. in Grand Rapids. The move will allow the owners to double their production and open a taproom. Arvon Brewing sold 72.8 barrels of beer in 2018, according to data from the Michigan Liquor Control Commission. 
Read 2058 times Last modified on Tuesday, 17 September 2019 15:54
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