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Our team has experience helping lower middle market businesses successfully close transactions.
The combined experience of our team members, some of which was gained through prior affiliations (indicated by *), includes work in a wide range of industries.
We work in a variety of different transactional roles, as buy-side and sell side intermediaries, and as debt placement and capital structure advisors, which enables us to approach our clients’ needs with a comprehensive mindset.
NEXTGEN GROWTH PARTNERS invests in Dealer 121 LLC
Headquartered in Roseville, MN, Dealer 121 (www.dealer121.com) provides an integrated marketing intelligence and execution platform that enables small and medium-sized automobile dealerships to deliver targeted marketing campaigns to their customers and prospects through digital and direct mail channels.
“We are excited about the partnership with NextGen,” said Dealer 121 Founder and President, Derc Teschler, who will remain involved with the business. “The combination of NextGen’s entrepreneurial talent, operational expertise, and previous experience scaling businesses makes them the ideal partner to help us develop and execute on our strategic objectives.”
NGP Entrepreneur-in-Residence, Rock Irvin, who has significant experience in the automotive marketing and data analytics industries, became the CEO of the acquired company.
About NextGen Growth Partners
Headquartered in the West Loop neighborhood of Chicago, NextGen Growth Partners is a private equity firm that partners with the best and brightest entrepreneurial talent to acquire, operate and grow lower middle market businesses across a variety of industries. The team has a strong track record of creating value through growth and operational improvement in middle market businesses. For more information, please visit www.nextgengp.com.
Krahn Capital Group, LLC served as the exclusive sell-side M&A advisor to Dealer 121 LLC.
Safco® Products Company Acquires the Assets of Focal™ Upright Furniture, LLC Launches Safco® Active Collection
Safco® Products Company announces the acquisition of the assets of Focal™ Upright Furniture, LLC, a designer and manufacturer of award-winning, ergonomic office furniture. Through this acquisition, Safco is further expanding their Active Working product line.
Designed by Focal Upright’s founder Martin Keen, creator of KEEN® Footwear, Focal Upright products are focused on creating healthier working environments through active movement and ergonomic design. Their revolutionary leaning seats, standing desks and ergonomic accessories complement Safco’s standing and active seating products such as their well-known Zenergy™ Ball Chair and Muv™ Desks.
“The acquisition of Focal Upright allows Safco to further expand our product and knowledge base around the growing trend of Active Working,” said Paul Griffiths, Safco General Manager. “Bringing Focal Upright’s products into our line will build on Safco’s 50-year history of product innovation.”
“At Focal, we have been attempting to create an upright revolution that helps desk- bound workers tap into their full human potential,” said Martin Keen, CEO and Head Designer at Focal Upright. “We are thrilled to be partnering with a well-established brand like Safco, to build upon their rich history and tradition, while bringing creative and innovative solutions to the office seating industry.”
Focal Upright products will continue to be sold under their brand name, while being added to the Safco Active Collection and sold through Safco’s distribution networks. Additionally, Focal Upright will sell corresponding Safco Active products on their brand website. Focal Upright will continue to be based in Rhode Island. As both companies are privately held, purchase price was not disclosed.
“We are excited to have Focal Upright join the LDI Family,” said Mike Fiterman, CEO of Liberty Diversified International, the parent company of Safco. “Their commitment to well-being and innovation around how people can work better aligns with our core values, and will enhance the work Safco has been building over their 50-year history.”
About Safco Products
For 50 years, Safco has been providing the furniture and office products needed to make a workplace feel like a workplace. But we don’t stop there. Our product offering includes seating (desk and guest), desks (sitting, standing, adjustable-height), organization (desktop organizers, filing, storage), presentation/training, ergonomics (backrests, footrests), work area (bookcases, printer stands), facility (wastebaskets, recycling) and educational solutions. Safco is a Liberty Diversified International company.
About Focal Upright
Focal Upright has earned a reputation for distinctive design and edgy innovation that make the company a thought leader in ergonomic furniture design. Led by Industrial Designer Martin Keen, founder of KEEN Footwear, the company creates products that encourage people and companies to break out of their sedentary work life, embrace their humanity, and add a little play to their day.
About Liberty Diversified International (LDI)
Liberty Diversified International is a privately-held family of businesses with approximately 1,500 employees operating in the following industries: Paper and packaging; furnishings and organization products for the office; and building and architectural products. With roots in the corrugated fiberboard business, the company was founded in 1918 and is headquartered in New Hope, MN.
MARSHALLTOWN acquires Avalanche!
MARSHALLTOWN, an industry-leading manufacturer of construction tools and equipment along with their new Polar Pusher snow tools, today announced it has acquired Avalanche!, a company specializing in premium roof snow removal systems. The purchase moves MARSHALLTOWN into a strong position within the snow tool industry.
“Our purchase of Avalanche! compliments everything we’ve built here at MARSHALLTOWN,” said Joe Carter, President & CEO. “Their brand recognition, customer loyalty, innovation, and above all, quality products, made them a natural fit. We plan to grow that reputation and provide our dealers, distributors, and customers an even stronger line of snow tools.”
MARSHALLTOWN plans to keep the Avalanche! name and brand but will add their products to the company’s catalog. The company will ultimately transfer production to their facility in Marshalltown, Iowa, where they will continue to maintain Avalanche!’s quality and innovative spirit.
Avalanche, Inc. designed and manufactures the premium, easy-to-use, tools in its category, the Avalanche! Roof Snow Removal System and the Snow Rake! Deluxe. Building on its success, it also developed the Big Rig Rake specifically designed for removing snow from the roofs of OTR trucks and other large vehicles. The Company looks forward to continuing to innovate as part of the MARSHALLTOWN team.
About MARSHALLTOWN
For over 130 years, MARSHALLTOWN has made reliable, industry-leading construction tools and equipment for various industries: masonry, drywall, concrete, asphalt, tile, flooring, painting, archaeology, and more. MARSHALLTOWN aims to constantly innovate the construction tool and equipment industry, looking for new ways to help finish jobs faster, better, and with more ease. Their tools can be found in major hardware retailers in the United States and around the world.
Krahn Capital Group, LLC acted as the exclusive investment banking advisor to Avalanche, Inc. in its sale to MARSHALLTOWN.
NEXTGEN GROWTH PARTNERS acquires Jacobs Marketing Group, LLC
JMG (www.jmgny.com) is a leading automotive direct marketing company located in Long Island, NY, with operations currently focused in the tri-state area (New York, New Jersey, and Connecticut). JMG has developed a methodology and a suite of marketing materials targeted to customers that can be used in a recurring program by its automotive dealership clients providing a meaningful return on investment for each marketing dollar spent. “We are thrilled about the growth potential that this partnership with NextGen and Dealer 121 brings; not only as it relates to geographic footprint but also expanded service product offerings in our current market,” said Scott Jacobs, JMG Founder and CEO, who will also remain involved going forward.
About NextGen Growth Partners
Headquartered in the West Loop neighborhood of Chicago, NextGen Growth Partners is a private equity firm that partners with the best and brightest entrepreneurial talent to acquire, operate and grow lower middle market businesses across a variety of industries. The team has a strong track record of creating value through growth and operational improvement in middle market businesses. For more information, please visit www.nextgengp.com.
Krahn Capital Group, LLC sourced the opportunity for NGP to acquire JMG concurrent with its acquisition of Dealer 121, and served as the exclusive buy-side finder for NextGen Growth Partners in its acquisition of JMG.
Growth at Safco® Products Company Continues with Mayline® Acquisition
Safco® Products Company has acquired the business assets of Wisconsin-based Mayline® Company, LLC. Mayline was a portfolio company of Baird Capital. Safco is part of the Liberty Diversified International (LDI) family of companies.
Mayline is headquartered and manufactures the majority of its products in Sheboygan, Wis., with a distribution center in North Little Rock, Ark. The company employs approximately 220 people.
“The addition of Mayline products to the Safco portfolio further strengthens our reach and capabilities for customers across the country,” said Paul Griffiths, Safco General Manager. “We are building a powerful set of commercial furniture and office product solutions for our customers.”
Griffiths said that both the Safco and Mayline brands and product lines will be maintained.
Mayline President and CEO Allan Klotsche said, “Joining forces with Safco provides Mayline a great opportunity to offer a broader solution set to our existing customer base and further leverage our manufacturing competencies. The fact that two mid-market furniture companies share such similar values and passion around our customers will simplify the integration process, and we expect that our customers will continue to receive that same level of excellence in both product and service.”
Safco’s Griffiths said the two companies are in the process of identifying opportunities for optimizing combinations of products and services to dealer-partners, with the ultimate goal of serving end user customers.
About Safco® Products
For 50 years, Safco has been providing the furniture and office products needed to make a workplace feel like a workplace. But we don’t stop there. Our product offering includes seating (desk and guest), desks (sitting, standing, adjustable-height), organization (desktop organizers, filing, storage), presentation/training, ergonomics (backrests, footrests), work area (bookcases, printer stands), facility (wastebaskets, recycling) and educational solutions. More information is available at www.safcoproducts.com. Safco is a Liberty Diversified International company – www.libertydiversified.com.
About Mayline® Company, LLC
Our heritage began in 1939, manufacturing drafting tables as the Engineering Supply Company. Today Mayline is one of the leading mid-market contract furniture manufacturers in the U.S., offering a complete collection of office furniture, filing, storage, and customized solutions. Mayline understands you have unique workplace needs, so every effort is made to optimize the work environment to fit both your style and space. For more information, visit www.mayline.com.
About Liberty Diversified International (LDI)
Liberty Diversified International is a privately-held family of businesses with approximately 1,500 employees operating in the following industries: Paper and packaging; furnishings and organization products for the office; and building and architectural products. With roots in the corrugated fiberboard business, the company was founded in 1918 and is headquartered in New Hope, MN.
Ace Cash Express acquires Money Centers, Inc.
Having opened five locations in the Twin Cities, Moneycenter was at a crossroads: any expansion would require establishing or acquiring new locations—a time-consuming and expensive process subject to increasingly restrictive zoning and other regulatory constraints.
We approached a select number of potential strategic and financial buyers. Having received an offer from a strategic buyer that was below the company’s expectations, we provided additional analysis, overlaying our client’s performance metrics on the buyer’s cost structure, demonstrating the synergistic impact of the potential acquisition to the buyer’s financial results.
We were able to obtain a significant increase in the purchase price, more than doubling the initial offer and resulting in the successful sale of Moneycenter to Ace Cash Express, a leading national retailer of financial services.
About Ace Cash Express
Ace Cash Express is a leading financial services provider, specializing in short-term consumer loans, bill pay, and prepaid debit card services, as well as the largest owner operator of check cashing stores in the United States. In business since 1968, ACE Cash Express focuses on serving consumers seeking alternatives to traditional banking relationships by gaining convenient, immediate access to financial services.
About Money Centers, Inc.
Moneycenter was founded to provide retail financial services to unbanked and under-banked individuals in the Minneapolis/St. Paul metropolitan area. For customers preferring the convenience and immediacy of neighborhood retail financial services over traditional commercial banking, the company provided convenient, fee-based services including check cashing, payday loans, money orders, funds transfers, bill payment services, prepaid phone cards and other retail financial products.
Krahn Capital Group, LLC team members served as the exclusive sell-side advisor to Ace Cash Express while affiliated with Teneca, an investment banking firm that has merged with Krahn Capital Group.
Xccent, Inc. Successfully Divests Medical and Industrial Division to Focus on Fitness & Motion Wellness Growth
Midwest Rubber Company has acquired the assets of Xccent, Inc.’s Medical and Industrial Division, increasing Midwest Rubber’s presence in the medical industry. This acquisition is positive for all parties to the transaction. In addition to further establishing Midwest Rubber as a leader in the rubber and flexible products industry, it is allowing Xccent to dedicate more management and manufacturing resources to their core business of playground and fitness equipment. This is especially significant for the launch of Xccent’s new Motion Wellness line, which is focused on the rapidly growing senior care market.
John Mathiesen, President of Xccent, Inc., said, “This is great news for our customers, as Midwest Rubber offers additional process capabilities outside of vinyl and latex dip molding such as rotational molding and urethane foam molding, and unique engineering and problem solving expertise. We have carefully selected the best suitor, Midwest Rubber Company, to carry on the legacy and reputation we have built over 40 years”
Krahn Capital Group provided sell-side merger and acquisition broker services to Xccent, Inc. in this transaction.
Gulf Eagle Supply, Inc. acquires A.H. Bennett Company
A series of storms had benefited A.H. Bennett in the short term, but also attracted an influx of out-of-town competitors that were here to stay—just before the ensuing recession and its impact on the housing market depressed demand for roofing products. With an increasing number of competitors fighting over a shrinking market, the company faced pricing pressures and mounting losses, compromising its future viability. At the same time, the majority owner faced a need to plan for retirement and diversify his personal net worth. Choosing not to wait for an uncertain market upturn, the family made the painful but practical decision to sell the company.
We marketed the opportunity to a select group of larger players within the roofing products industry, the majority of which were direct competitors. Our client’s respected brand, customer relationships and diversified locations proved strong incentives for buyers, and the process we ran yielded attractive offers despite the depressed market. A.H. Bennett chose the buyer based not solely on the highest offer, but on a combination of price and trust in a buyer respected for fair treatment of employees and smooth integrations of acquired entities.
We were able to negotiate terms that exceeded the majority owner’s expectations, satisfied his personal financial needs and protected the interests of all stakeholders. Our competitive process and the strength of our client’s brand helped influence the buyer to offer a premium for the opportunity to add to its growing portfolio of regional operators.
About A.H. Bennett
With five locations in Minnesota, Wisconsin and North Dakota, A.H. Bennett had been a market leader in the distribution of roofing and other construction products and services to the building industry since 1922.
About Gulfeagle Supply, Inc.
Gulfeagle Supply (www.gulfeaglesupply.com) specializes in servicing the professional roofing contractor and also provides a variety of products and services to the homeowner, building owner, architect and general contractor. The company started in Tampa, Florida in 1973 with one branch and has grown to over 80 locations nationwide. This growth has come from acquisitions, start-up locations, and diversity of products.
Krahn Capital Group, LLC team members served as the exclusive sell-side advisor to A.H. Bennett while affiliated with Teneca, an investment banking firm that has merged with Krahn Capital Group.
MQ Software, Inc. receives growth financing
MQ Software had a need for growth capital to support its expanding market share, but it had not achieved consistent profitability. Due to performance issues, management had not considered a debt solution, but an infusion of new equity would result in substantial dilution.
Identifying the value of MQ’s recurring maintenance revenue stream, we marketed the opportunity to a select group of technology lenders. We accomplished a $10 million senior debt solution with no equity conversion features, supported by revenues from long-term customer contracts.
With the growth capital it needed to move forward, MQ Software was positioned to expand its sales and marketing efforts, grow distribution channels and capitalize on growth opportunities within the enterprise software space.
About MQ Software, Inc.
MQ Software’s solutions are used by transaction-centric industries such as banking, insurance and financial services to monitor transaction flow on a real-time basis and identify problems and interruptions in data flow. The company’s specialty—monitoring mission-critical processes—was a key differentiator within its sector.
Krahn Capital Group, LLC team members served as the exclusive financial advisor to MQ Software while affiliated with Teneca, an investment banking firm that has merged with Krahn Capital Group.