Manufacturing Acquisitions in Arkansas

Portrait Capital has acquired AAi Labels & Decals (Art Advertising, Inc.) and Sticker Ranch, combining the two businesses into a single specialty label platform. The deal pairs AAi’s five-decade expertise in durable, compliance-driven labels with Sticker Ranch’s web-to-print digital capabilities to expand customer solutions and pursue further strategic acquisitions under new CEO Lynn Higgs.

Charger Investment Partners' portfolio company SBG Holdings Inc. has acquired Ameripolish Inc., a Lowell, Arkansas-based manufacturer of consumables and coatings for polished concrete and terrazzo flooring. The add-on expands SBG's consumables offering across the concrete flooring lifecycle and will keep Ameripolish's founders and management in place to continue running the business.

Grote Company, a Columbus, Ohio-based food processing equipment manufacturer, has acquired ProFab, a Springdale, Arkansas-based manufacturer of conveyors and provider of millwright and process piping services for the food (notably poultry) industry. ProFab will remain a standalone operation in Springdale while being integrated into Grote Company's family of brands to expand its capabilities and presence in the food processing and poultry markets.

Chicago-based private equity firm Wind Point Partners has acquired Central Moloney (CMI), a Pine Bluff, Arkansas manufacturer of distribution transformers and transformer components. Wind Point will partner with CMI management to invest in production capacity, modernize equipment and systems, and pursue strategic growth initiatives to serve U.S. utilities and other critical-infrastructure customers.

New York-based private equity firm Hemingway Capital led a recapitalization of Chibuzo, LLC, a Fort Smith, Arkansas manufacturer of wood pallets and crates, partnering with Werner and Theresa Hugo. The transaction was financed with subordinated debt and preferred equity provided by Spring Capital Partners, Parkway Capital (a Calvert Street affiliate) and IBC Funds to support the acquisition/recapitalization.

Olympic Steel Inc. (Nasdaq: ZEUS) has acquired Central Tube & Bar (CTB) in an all-cash, immediately accretive purchase; terms were not disclosed. CTB, founded in 1996 with facilities in Conway, Arkansas and Tulsa, Oklahoma and trailing 12-month revenue of approximately $40 million, expands Olympic Steel's tubular and pipe products segment and value-added contract manufacturing capabilities in the Mid-South.

Hawkins, Inc. (Nasdaq: HWKN) completed the acquisition of EcoTech Enterprises, Inc., adding its 40th Water Treatment location and expanding Hawkins’ footprint in Arkansas and surrounding states. EcoTech manufactures, blends, packages and distributes water treatment chemicals locally; Hawkins said it will maintain EcoTech’s community connections while using the tuck-in to accelerate regional water treatment growth.

Arcane Plastics, backed by Arcane Capital Partners and an investment from Bluehenge Capital Partners, has acquired Prairie Grove-based Poly-Tech Plastic Molding, a custom injection-molding and extrusion company. The deal expands Arcane's production capacity (adding a 65,000-square-foot facility), broadens its customer base across multiple end markets, and supports a platform strategy to consolidate plastics manufacturing capabilities in North America.

Mytee, LLC (a portfolio company of Dry Fly Capital) has acquired a majority stake in Square Scrub, LLC, a Jonesboro, Arkansas manufacturer of hard-surface floor cleaning machines. The transaction was supported by mezzanine debt and a minority equity investment from First Capital Partners in partnership with Dry Fly Capital and UMB Capital Corporation; Square Scrub founders Kevin and Renee Brady will remain involved as shareholders.

American Roller has acquired Big River Roller, a Paris, Arkansas-based industrial roller and core manufacturer, in a transaction that expands American Roller’s capabilities in rubber coverings and core design while extending its presence in the U.S. South. Terms were not disclosed; Big River’s founding members are joining as part of American Roller’s ownership group and the deal has already resulted in expanded service routes and integrated core manufacturing capabilities.

USNR, a division of Wood Technologies International, acquired Timber Automation, LLC from Blue Sage Capital. The deal adds Timber’s LogPro and Baxley product lines, more than 250 employees and over 200,000 square feet of manufacturing capacity to USNR, expanding its product offering and production capabilities in the wood-processing equipment market.

Graco Corporation, a Gravette, Arkansas-based parts manufacturer with a focus on the firearms/shooting-sports market, was sold by founders Larry and Sue Eaton and partners Gary and Jean Phipps to buyers Gary and Denise Box. The sale was completed with representation by CBI Team Northwest Arkansas, and the buyers plan to continue operations at the Gravette location.

The Toro Company has acquired privately held Intimidator Group, the Arkansas-based maker of Spartan Mowers and Intimidator UTVs, for $400 million. The acquisition expands Toro's position in the zero-turn mower market, adds a complementary product lineup sold through an established dealer network, and will maintain manufacturing operations in Batesville, Arkansas.

Brunswick Corporation’s Advanced Systems Group has acquired SemahTronix, a Flippin, Arkansas-based supplier of high-complexity electrical wiring harnesses for marine, mobile and defense markets. The acquisition will be integrated into Brunswick’s ASG to vertically integrate wiring harness capabilities, improve quality and lead times, and expand end-to-end systems offerings.

Skylark Private Equity Partners completed an investment in Claridge Products, a U.S.-based manufacturer of writing surfaces and related solutions for K-12 schools and commercial customers. The Claridge business — long-owned by the Clavey family — will be led operationally by Marcus McNew in partnership with Skylark to accelerate product and manufacturing growth.

Wynnchurch Capital has acquired Drew Foam Companies, a Monticello, Arkansas–based manufacturer of expanded polystyrene (EPS) products, from Branford Castle Partners. Drew operates multiple manufacturing facilities across the Southeast U.S. serving packaging, building products and OEM end markets; terms were not disclosed and Wynnchurch intends to support the company's organic and inorganic growth.

The Sterling Group, a Houston-based private equity firm, announced an investment in Bad Boy, Inc., a Batesville, Arkansas manufacturer of high-performance zero-turn riding lawn mowers. The deal partners Sterling with founder Phil Pulley to support Bad Boy's continued growth and expansion of its dealer and retail distribution.

Newterra Group has acquired TIGG, a manufacturer of activated carbon adsorption equipment and provider of liquid and vapor treatment solutions, effective October 8, 2019. The deal expands Newterra's manufacturing capacity and treatment capabilities, strengthening its reach into municipal, industrial and environmental remediation markets.

Arsenal Capital Partners has entered into a definitive agreement to acquire a controlling interest in Revolution, a Little Rock-based manufacturer of sustainable, closed-loop plastic products. The Stephens Group concurrently invested a significant minority stake to support Arsenal's investment; Revolution’s founder Dhu Thompson and CEO Sean Whiteley will remain investors and board members. Terms were not disclosed.

GRT Rubber Technologies L.L.C., a newly formed company funded by an investor group led by Main Street Capital Corp. and including members of Garlock Rubber's management, purchased Garlock Rubber Technologies from EnPro Industries Inc. for about $44 million. The Paragould, Arkansas-based rubber products maker (80–90 employees) will continue operations under management with new capital intended to support organic growth and potential future acquisitions.