This is the MiBiz Growth Report for August 15, 2022:
Mergers & Acquisitions
- Global appliance maker Whirlpool Corp. acquired a major manufacturer of food waste disposers and instant hot water dispensers for $3 billion. As part of the all-cash deal, Benton Harbor-based Whirlpool (NYSE: WHR) has entered into a definitive purchase agreement to acquire Mount Pleasant, Wis.-based InSinkErator from parent company Emerson Electric Co. (NYSE: EMR) of St. Louis, Mo. Founded in 1938, InSinkErator holds a share of over 70% of the food waste disposal industry, serving both home and commercial users . Emerson Electric acquired the company in 1968. InSinkErator employs nearly 1,400 people. The InSinkErator business expects to generate sales of approximately $650 million, with more than $170 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year ending September 30, 2022.
- A New York investment firm has acquired Burke Porter Group Co., an Ada-based producer of automated diagnostic, test and production equipment for the life sciences, automotive, aerospace and other specialized industrial markets. AEA Investors’ Middle Market Private Equity bought Burke Porter Group from Hong Kong-based China Everbright Ltd.’s CEL Global Investment Fund LP, which acquired a majority stake in the company in 2015 for $90 million. Through the partnership with CEL Global Investment, Burke Porter Group has been transformed “into a global automation solutions platform,” according to an announcement this month about the sale to AEA Investors. Terms of the agreement with AEA Investors were not disclosed.
- Heartland Home Services LLC, a private equity-backed provider of HVAC, plumbing and electrical home services, has added a second Wisconsin-based company to its portfolio of companies in recent months. Following the recent acquisition of the Thielmann Group, officials at Heartland Home Services announced this month that the company has acquired Hurlburt Heating, AC & Plumbing in western Wisconsin. Hurlburt is a family business in operation since 1959. Terms of the agreement were not disclosed. Heartland Home Services — which is owned by New York-based private equity firm The Jordan Co. — has now announced half a dozen deals in 2022, gradually expanding its reach in the Midwest after acquisitions this year in Cincinnati, St. Louis, Kansas City and the Chicagoland area.
- Portage-based HTSE Inc., a provider of process automation and machine control systems, has been acquired by GrayMatter Systems LLC, a cybersecurity, technology and consulting firm based in Warrendale, Pennsylvania. The acquisition will add complementary capabilities to help GrayMatter meet demand for industrial intelligence solutions, according to a statement. Founded in 1989, HTSE currently serves customers in the food, beverage, pharmaceutical, chemical and general manufacturing industries. The deal is GrayMatter’s third strategic acquisition in four years since the company received an investment from Hamilton Robinson Capital Partners, a Stamford, Connecticut-based private equity firm. Terms of the HTSE agreement were not disclosed.
- Zeeland-based ODL Inc., a manufacturer of door glass, blinds and other building products, has acquired Robover Inc., a Quebec-based manufacturer of insulating glass. Robover has served the Canadian market for over two decades. ODL plans to retain all Robover employees and locations after the deal closes, which will bring new products and capabilities to the company. Wells Fargo funded the deal. Fifth Third Securities acted as financial advisor to ODL, which was advised by the law firms Honigman LLP in the United States and Faskens LLP in Canada. The terms of the contract are not disclosed.
- Sawyer-based Corvette Central, a manufacturer and supplier of restoration parts for Chevrolet Corvette sports cars, sold in Chattanooga, Tenn. Family-owned Corvette Central was founded in 1975 and offers parts to upgrade, repair or restore all model Corvettes. The deal adds an extensive parts line and reputation for customer service to the operations of Legendary Companies, which also includes Coker Tire and Paragon Corvette. Legendary Companies has been a New York-based holding company of Irving Place Capital since 2018. Terms of the agreement were not disclosed. Grand Rapids-based investment bank BlueWater Partners LLC served as financial advisor to Corvette Central on the transaction.
- Kauhale Health in Westerville, Ohio has acquired the Vicinia Gardens of Otsego assisted living and memory care community. The deal was Kauhale’s first acquisition and was part of an aggressive regional strategy of investing and managing in retirement homes. It also follows the company’s appointment in March as director of the Vista Grande Villa Continuing Care Retirement Community in Jackson. Kauhale will rename Vicinia Gardens of Otsego to Kauhale Otsego.
- Hagerty (NYSE: HGTY), a Traverse City-based automotive lifestyle brand and specialty insurance provider, has entered into a definitive agreement to acquire the outstanding shares of Okemos-based Broad Arrow Group Inc. for $64.8 millions of dollars. The all-stock transaction, which is expected to close on August 16, comes after Hagerty acquired a 40% stake in Broad Arrow, which specializes in transactional segments of the collector car market, earlier this year. The deal supports Hagerty’s Marketplace, an exclusive classifieds platform that connects collector car buyers and sellers. Hagerty sees a significant opportunity in the live, online collector car auction industry: In the 12 months ending June 30, 2022, Hagerty members bought and sold over 300,000 collector cars worth nearly $12 billion, according to the company.
- The owners of the Shops at CenterPoint mall in Grand Rapids have sold the property in a $63.5 million deal. New York-based Stonemar Properties LLC, a real estate investment and management firm, completed the off-market transaction for the mall with a fund managed by New York-based DRA Advisors LLC, in partnership with Pine Tree Commercial Realty, based in Illinois. LLC. The CenterPoint deal marks Pine Tree’s entry into the Grand Rapids market and comes as the company went on a buying spree last year, rolling out some $375 million in deals, according to a communicated. The 537,948 square foot mall, located near the bustling and busy intersection of 28th Street and East Beltline Avenue, includes retailers TJ Maxx, HomeGoods, Nordstrom Rack, Sierra Trading Post, DSW Designer Shoe Warehouse , Ulta Beauty, Five Below, JOANN Fabrics, Planet Fitness and Dunham’s Sports.
INCREASE IN CAPITAL
- Zeeland furniture startup Quint Workspaces LLC, which seeks to play in the growing home office trend, has secured $1.5 million in capital from Michigan investors. Formed in 2020 by office furniture industry veteran Don Goeman, the company plans to use seed funding to support new product development, expand delivery services to key markets and improve e-commerce capabilities . Goeman previously worked for 40 years at Herman Miller Inc., now MillerKnoll Inc. He served as executive vice president of research, design and development from 2005 to 2019 before forming Quint Workspaces. Early round investors include Grand Rapids-based Michigan Capital Network, Invest Detroit Ventures, Michigan Rise in East Lansing and Detroit-based Invest Michigan, as well as individual investors.