TRANSACTIONS

APPLIED Adhesives Acquires American Chemical

APPLIED Adhesives, a premier custom adhesive solutions provider in North America, announced the acquisition of American Chemical, a regional supplier of adhesives and sealants located in Minneapolis, MN. APPLIED’s acquisition of American Chemical serves to strengthen its commitment of providing industry leading technical expertise and exceptional service to its customers.

About APPLIED Adhesives

APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider for the packaging, paper converting, graphic arts, bottle labeling, product assembly, and automotive industries. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.

“American Chemical has consistently delivered innovative solutions and exceptional value to its customers, which aligns with our culture of relentless customer focus,” said John Feriancek, president and chief executive officer of APPLIED Adhesives. “We look forward to welcoming American Chemical’s customers to the APPLIED family and providing them outstanding service, support, and value.”

American Chemical is APPLIED Adhesives’ third acquisition in 2021 and its eighth in the last four years.

About American Chemical

For over 30 years, American Chemical has supported the needs of its customers through new product development and in-house lab services for unique applications. “I am very proud of American Chemical’s legacy of innovation and customer support,” said Dennis Werneke, former owner of American Chemical. “I’m excited that our customers will now have the opportunity to partner with APPLIED and their talented, customer-focused team of professionals. Our customers are in good hands.”

Krahn Capital Group, LLC acted as the exclusive sell-side investment banking advisor to American Chemical in its sale to APPLIED.

APPLIED Adhesives Acquires McGinley Adhesives

APPLIED Adhesives, a premier custom adhesive solutions provider in North America, has completed its acquisition of McGinley Adhesives. Based in Teterboro, NJ, McGinley has over 30 years of adhesive experience with a focus on serving those in the food, beverage, and pharmaceutical industries. This acquisition represents an opportunity to expand APPLIED’s presence on the East Coast.

“We are pleased to welcome McGinley Adhesives to the APPLIED team. John and Phil have provided outstanding service to their customers for many years, and we look forward to continuing to delight McGinley Adhesives customers as we integrate the business into APPLIED,” said John Feriancek, President and CEO of APPLIED Adhesives. “Furthermore, we believe our ability to provide a truly custom adhesive solution that addresses both the adhesive as well as adhesive dispensing equipment will provide additional opportunities to help our customers optimize their operation.”

“As a family-owned business, we have taken great pride in serving our customers and establishing strong relationships over the past 30 years,” said John McGinley, Co-Owner, McGinley Adhesives.

“APPLIED’s focus on relentless customer service is aligned with our values and we are confident that the acquisition will not only provide our customers with exceptional experiences but also increased access to innovative products and services, “added Phil McGinley, Co-Owner, McGinley Adhesives.

About APPLIED Adhesives
APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider in North America. Our experts source the adhesives, equipment, and parts you need while providing maintenance services that help you run at optimum efficiency. APPLIED offers customized solutions with a cost-in-use approach that saves you time and money. For more information, please visit appliedadhesives.com.

About McGinley Adhesives
Since 1997, McGinley Adhesives, based in Teterboro, New Jersey, has served as a leading distributor for an extensive line of adhesive products for the packaging industry.

Krahn Capital Group, LLC acted as the exclusive sell-side investment banking advisor to McGinley Adhesives in its sale to APPLIED.

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.

The acquisition fits into MARSHALLTOWN’s strategy of providing customers with quality, innovative products that help jobs get done quicker and easier. By purchasing Avalanche!, MARSHALLTOWN will expand its product offerings and continue to grow their position in the 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.

About AVALANCHE!
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 sell-side investment banking advisor to Avalanche, Inc. in its sale to MARSHALLTOWN.

JLG Architects Acquires 292 Design Group

The decision to merge Minneapolis-based 292 Design Group with JLG Architects employee-owned firm of over 170 team members across four states provides a great opportunity for two firms that value great design to come together and elevate the human experience in the education, community, healthcare, recreation, and sports sectors.

292 Design Group was established in 2009 by three partners who had worked together for several years in a previous firm: Pam Anderson, AIA, CID, LEED AP; Tom Betti, AIA, NCARB; and Mark Wentzell, AIA. Prior to the merger with JLG, 292 was a full-service architecture and planning firm that provided feasibility and assessment studies, comprehensive planning, architectural and interior design, and environmental graphics. Their team brings over three decades of experience to JLG in a range of facilities design, including ice arenas, community and wellness centers, healthcare clinics, and educational spaces.

“We are two firms that truly believe in the capacity of great design – inclusive design that reflects the culture and aspirations of its stakeholders – to positively impact the health, well-being, and future growth of every community. This is a powerful alliance that will take community, education, and sports-focused architecture to the next level.”
Michelle Mongeon Allen, CEO, JLG Architects

“The decision to merge 292 with JLG provides a great opportunity for two firms that value great design to come together and elevate how our communities experience education, healthcare, recreation, sports, and public space. When two companies unite with shared values, expertise, and the desire to raise our game, the sky is the limit for not only JLG but our clients!”
Tom Betti, AIA, NCARB – 292 Design Group Partner

The transition marks the fifth merger in JLG’s company history, focused on elevating the firm’s collective expertise, accessibility, and Design for Life approach. “Design for Life is all about the betterment of community – we focus on the human experience – how people use spaces, what design can bring to its users, and how it can work to transform the surrounding community,” said Dave Dimond, JLG’s Director of Design. “The decision to merge with 292 was simple – their approach is so much like our own – if it’s not designed to make life better, engage the community, and elevate its function, it doesn’t move forward.”
Krahn Capital Group, LLC acted as the exclusive sell-side investment banking advisor to 292 Design Group on its sale to JLG.

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.

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.

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.

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.

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.

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.

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.