Acquisitions in Minnesota in 2019

Carlson Private Capital Partners made a significant investment to take a long-term position in founder-owned Lakeshirts / Blue 84, a designer, manufacturer and distributor of customized apparel headquartered in Detroit Lakes, Minnesota. Yukon Partners provided mezzanine financing in support of the transaction to back Carlson's platform investment and the company's next phase of growth.

Wind Point Partners portfolio company Targeted PetCare has acquired sWheat Scoop, a manufacturer of 100% wheat-based biodegradable cat litter, from Farmers Union Industries. The add-on expands TPC's alternative cat litter offering and broadens its branded product portfolio to accelerate growth across retail and distribution channels.

Transom Capital Group, a Los Angeles-based middle market private equity firm, has acquired Scantron Corporation, a global provider of assessment, testing, managed IT and data capture solutions. The transaction transfers Scantron from Harland Clarke Holdings to Transom, which will invest in the business to expand its assessment, certification testing and technology offerings.

St. Louis-based private equity firm WILsquare Capital has completed the acquisition of Versare Solutions, LLC, a Minneapolis manufacturer and e-commerce marketer of portable room partitions, privacy screens, workstations and acoustical products. Financial terms were not disclosed; WILsquare said it will support Versare’s investments to expand capabilities, product development and digital/e-commerce growth.

Monomoy Capital Partners has acquired Sportech, Inc., a Minnesota-based designer and manufacturer of cab components and thermoformed plastic assemblies for powersports, golf & turf, industrial and agriculture OEMs. Sportech operates three facilities in Minnesota and employs about 325 people; Monomoy said it will partner with management to drive continued operational and financial improvement.

Battery Ventures and Newforma have acquired EleVia Software, a provider of financial and operational software for architecture, engineering, and professional services firms. The deal expands Newforma’s AECO product footprint by adding EleVia’s electronic invoicing, payables, A/R management, forecasting and integration capabilities.

Groundworks Companies, a portfolio company of Succession Capital Partners, has acquired Innovative Basement Systems (rebranded as Innovative Basement Authority). The acquisition brings Innovative's ~80 employees and regional footprint in Minnesota, North Dakota and eastern Montana into Groundworks' national foundation services platform as an add-on to accelerate growth and service expansion.

First Capital Partners has completed a debt and equity co-investment in Trinity3 Technology to support Rotunda Capital Partners' recapitalization of the business. Trinity3, based in St. Paul, Minnesota, is a value‑added reseller of tablets, laptops, PCs and related support services serving the K‑12 market across the United States.

Benford Capital Partners has made an investment in LiteSentry, a Northfield, Minnesota–based manufacturer of automated inspection and test equipment for the flat glass industry. The investment will support LiteSentry’s growth initiatives, new hires, product development and business development while management and the company’s strategy remain in place.

UST Global has acquired Contineo Health, a healthcare technology consulting firm that specializes in EHR optimization and value-based care solutions. The acquisition expands UST Global's capabilities across payer and provider domains and strengthens its EHR services for hospital systems and health networks across the United States.

Austin-based private equity firm Greenridge Investment Partners partnered with GrowthZone management to acquire GrowthZone, a Nisswa, Minnesota–headquartered provider of cloud-based association management software. RF Investment Partners provided debt financing and an equity co-investment to support the transaction; Greenridge plans to help GrowthZone invest in product development and customer support to accelerate growth.

Angeles Equity Partners acquired Crenlo Cab Products (from KPS Capital Partners) and Worthington Industries Engineered Cabs (from Worthington Industries) and is merging the two businesses into a single, Angeles‑controlled company. The combined business will be majority owned by Angeles with Worthington retaining a minority stake; the deal is intended to increase manufacturing scale, expand geographic reach across North and South America, and broaden the product portfolio for heavy equipment and off‑highway OEM customers.

ICU Medical, Inc. agreed to acquire Pursuit Vascular, Inc. for $75 million plus a potential earnout, bringing the ClearGuard HD antimicrobial catheter cap into ICU Medical’s consumables portfolio. The acquisition expands ICU Medical’s infection-prevention product offerings and distribution channels (domestic and international); Pursuit Vascular’s 2019 revenue was an estimated $10–12 million.

Tender Corporation, a Victor Capital Partners-backed outdoor consumer products platform, has acquired RapidPure, a maker of portable water purification systems using UltraCeram technology. The deal adds virus- and bacteria-removing purification products to Tender’s portfolio and expands RapidPure’s distribution into Tender’s outdoor specialty, mass market, and online channels.

West Monroe Partners acquired Minneapolis-based digital product studio GoKart Labs to expand its digital transformation, product design, and digital innovation capabilities. Clearsight Advisors served as the buyside advisor to West Monroe on the transaction, which West Monroe described as the largest acquisition in its history to date.

GHK Capital Partners, a Greenwich, Connecticut-based private equity firm, completed the acquisition of Dura Supreme Cabinetry from the company's second-generation founding family. Dura Supreme is a vertically integrated manufacturer of premium semi-custom and custom cabinetry based in Howard Lake, Minnesota; GHK said the investment will support the company's operating platform and accelerate strategic growth into new U.S. markets.

Private equity firms TA Associates and Charlesbank Capital Partners have signed definitive agreements to become additional investors in HelpSystems, joining existing investor HGGC as well as management and employees. The minority growth investment will provide capital to accelerate HelpSystems' organic growth and support complementary acquisitions of cybersecurity, automation and analytics solutions.

Thoma Bravo, a software-focused private equity firm, has acquired majority ownership in IDS, a Minneapolis-based provider of asset finance software including InfoLease and IDScloud, from SV Investment Partners. The partnership will accelerate IDS' cloud roadmap, support global growth and position IDS as a platform for industry consolidation.

Converge Technology Solutions Corp. (TSXV:CTS) acquired Datatrend Technologies, Inc., a Minneapolis/St. Paul–area technology solutions provider, adding Datatrend’s teams and customers to Converge’s Hybrid IT platform. The deal expands Converge’s geographic footprint and technical capabilities in next‑gen data center, hybrid cloud, infrastructure and managed services across North America.

Strattam Capital completed a majority investment in MHC Software and concurrently MHC acquired Vanguard Systems to expand its workflow and process automation capabilities. The combined MHC (post-transaction) serves over 1,100 customers (more than two million users) and will integrate Vanguard's mobile, eSign and ID Protect products into its enterprise content automation platform.

Verndale, a customer experience agency headquartered in Boston, acquired Minneapolis-based Aware Web Solutions to expand its Midwest presence and strengthen its technical capabilities across CRM, CMS, commerce, and PIM solutions. The deal unites Aware's implementation experience in manufacturing, healthcare, and higher education with Verndale's strategy, design, and digital marketing services under the Verndale brand.

pCare, a portfolio company of Capital Resource Partners, has acquired TruthPoint to expand its patient experience platform with digital rounding and real-time feedback capabilities. The deal brings TruthPoint’s RapidRoundsPlus technology and CoachAdvisor services into pCare’s open platform to help health systems improve patient satisfaction and CAHPS scores.

Compudyne, a regional IT solutions provider based in Duluth, Minnesota, has acquired the assets of Revelation Network Management, Inc. (RevNet), an IT services firm headquartered in Braham, Minnesota. The acquisition expands Compudyne's presence and technical capabilities in Minnesota, adding RevNet's SaaS, colocation/hosting, business continuity and hybrid cloud offerings to Compudyne's service portfolio.

Arcline Investment Management, a growth-oriented private equity firm, has acquired Pride Engineering, a Minneapolis-based manufacturer of precision tooling and equipment for the aluminum beverage packaging industry, from May River Capital. Arcline intends to use Pride as the first asset in a specialty tooling platform and to invest in the company’s engineering, technology capabilities and rollout of its SYNAPSE IoT solution.

Funds affiliated with TA Associates have acquired the equity stake in Wealth Enhancement Group previously held by funds affiliated with Lightyear Capital LLC. Wealth Enhancement Group will remain privately held and independent under its existing leadership while the new partnership with TA Associates is intended to support accelerated organic growth and acquisition-led expansion; financial terms were not disclosed and the deal is expected to close in Q4.

Triage Medical Staffing, an Omaha-based national medical staffing agency, has acquired Aspen Medical Staffing, a St. Cloud, Minnesota firm that places rehabilitation therapists in travel, contract and permanent roles. The deal expands Triage's rehab and travel therapy capabilities and adds Aspen's experienced recruiting team to support first-time and traveling therapists nationwide.

Atlas Holdings has completed the acquisition of the Snacks Division of TreeHouse Foods for $90 million, establishing the business as Flagstone Foods headquartered in Minneapolis. The division, a leading private-label manufacturer and distributor of nuts, trail mixes and dried fruit with more than 800 associates and multiple U.S. plants, was sold as part of TreeHouse's plan to pay down debt and refocus its business.

Perforce Software received a significant new equity investment from Francisco Partners, which will become an equal partner with affiliates of Clearlake Capital; Perforce's management also participated in the transaction. The capital will support Perforce's buy-and-build growth strategy to expand its DevOps platform, accelerate M&A activity and extend its global footprint; terms were not disclosed.

Bristol ID Technologies, a Lima, New York-based manufacturer of RFID and custom identification cards, has acquired Plastic Resource Inc., a Cottage Grove, Minnesota-based specialty printer of short-run PVC and Teslin cards used for gift, loyalty and membership programs. The acquisition, announced by Pillsman Partners (an investor in Bristol ID), expands Bristol ID's Duracard capabilities by adding quick-turn, small-run card production and complementary materials and formats.

Illuminate Education, a PE-backed provider of K-12 assessment and data systems, has acquired FastBridge Learning, an evidence-based K-12 assessment platform developed with researchers from the University of Minnesota. FastBridge's ownership group — including founders Dr. Ted Christ and Dr. Zoheb Borbora, CEO Terri Soutor, and the University of Minnesota — was advised by Cherry Tree on the transaction; Illuminate is backed by Insight Venture Partners.

Rochester Gauges, a Renovo Capital–backed manufacturer of liquid level gauges and sensors, has acquired FPI Sensors, a float level switch and liquid-level sensor manufacturer based in Eagan, Minnesota. The acquisition expands Rochester's product offering and market share in the liquid level measurement space, allowing FPI customers to access Rochester's broader product portfolio and engineering resources.

American Construction Source (ACS), a national building materials platform backed by Angeles Equity Partners and Clearlake Capital Group, has acquired Freeborn Lumber Company of Albert Lea, Minnesota. Freeborn will operate under the Arrow Building Center brand, expanding ACS's geographic reach into southern Minnesota and northern Iowa; financial terms were not disclosed.

Keystone Capital completed an investment partnership with KENDELL Doors & Hardware in June 2019, taking a private equity stake to support the company’s growth and consolidation strategy. The investment will help KENDELL expand geographically and pursue add-on acquisitions in the security, door hardware and access control markets while supporting organic growth and service capabilities.

High Road Capital Partners completed the acquisition of John Henry Foster Minnesota (JHFoster), a value-added distributor of motion control, compressed air systems, robotics and electrical automation products headquartered in Eagan, Minnesota. The deal closed May 24, 2019; JHFoster's president Jan Hawkins will continue to lead the company and joined the board, and management participated alongside High Road to support growth, geographic expansion and future add-on activity.

InComm, a payments and technology provider headquartered in Atlanta, acquired Hallmark Business Connections, the B2B incentives subsidiary of Hallmark Cards. The acquisition expands InComm’s loyalty and incentives offerings by adding Hallmark’s integrated physical and digital gift card and employee engagement program capabilities, serving Fortune 500 clients across healthcare, banking and hospitality.

TEAM Services Group, a portfolio company of Alpine Investors, has partnered with Circle of Life Home Care Anishinaabe, a Native-founded home care agency, to bring Circle of Life into TEAM Public Choices (TPC) as an add-on acquisition. Circle of Life operates more than 20 locations and serves roughly 1,500 clients across multiple states; Vertess Advisors represented Circle of Life on the sell-side.

Brixey & Meyer Capital completed the acquisition of Patriot Converting, Inc., a custom paper converting and logistics provider based in Elk River, Minnesota. Cherry Tree advised Patriot Converting on the sale, which transfers ownership from founder/owner Mike Stilwell to the Ohio-based private investment firm to expand BMC’s manufacturing and distribution platform.

LFM Capital, a Nashville-based private equity firm, has invested in ShopSabre, a Lakeville, Minnesota-based manufacturer of CNC routers and plasma tables. The partnership will support ShopSabre's facility expansions, product development, and growth initiatives while retaining leadership involvement from founder and CEO Jim Bombardo and his family.

Athletica Sport Systems Inc. has acquired Becker Arena Products Inc., a U.S.-based maker of dasher board systems and arena aftermarket products. The acquisition expands Athletica’s North American footprint and combines engineering, manufacturing and sales capabilities to better serve community and multiuse entertainment facilities.

Nautic Partners, LLC has completed the acquisition of LindFast Solutions Group in partnership with LindFast management. LindFast, headquartered in Blaine, Minnesota, is a master distributor of specialty fasteners offering a deep virtual inventory (~130,000 SKUs) and value‑added services; Nautic plans to support organic growth, cross‑selling and selective add‑on acquisitions. Financing for the transaction was provided by Ally Financial and GSO Capital Partners.

RLJ Equity Partners acquired a majority interest in Virteva and will merge the Virteva team into Crossfuze to strengthen ServiceNow and managed services capabilities. The combined organization expands Crossfuze's global footprint, bringing additional ServiceNow consultants and widening its managed services offering to corporate and government customers.

DIVERSANT, a Red Bank-based IT staffing firm, has acquired Alliance of Computer Professionals (ACP), a Minneapolis-based IT staffing company. The acquisition expands DIVERSANT’s footprint into the Minneapolis and Atlanta markets and aims to broaden service offerings and career opportunities for ACP consultants and employees.

QualTek has acquired Vertical Limit LLC to expand its Midwest presence and capabilities in wireless infrastructure services. The acquisition brings Vertical Limit's Midwest footprint and experienced team into QualTek's national turnkey telecommunications and power services platform.

Carlson Private Capital Partners closed its first investment by acquiring LindFast Solutions Group, a master distributor of specialty fasteners headquartered in Blaine, Minnesota. LindFast (formerly Lindstrom), which includes the Stelfast imperial fasteners business and a deep inventory of ~130,000 SKUs across North America, will serve as Carlson’s platform in the specialty fastener distribution market.

Goldner Hawn, LP has completed a recapitalization of Trystar, LLC in partnership with Trystar's management. Trystar, headquartered in Faribault, Minnesota, is a manufacturer of temporary electrical power distribution products serving utilities, data centers, healthcare and other commercial and public-sector end markets; the partnership will provide capital and resources to support Trystar's next phase of growth.

Wellspring Capital Management, a New York-based private equity firm, has closed the acquisition of Center for Diagnostic Imaging (CDI), a Minneapolis-headquartered provider of outpatient diagnostic imaging and interventional radiology services. Wellspring said it will partner with CDI's management to support growth initiatives, operating improvements and potential add-on acquisitions to expand CDI's national network and capabilities.

Saw Mill Capital, in partnership with the management of its portfolio company Climate Pros, has acquired Market Mechanical, a Minneapolis–St. Paul regional supplier of refrigeration and HVAC services founded in 1986. The acquisition expands Climate Pros' geographic footprint in Minnesota, adds technicians and new customers, and supports the platform's strategy to broaden service offerings in the cold-chain/grocery retail market.

SE Capital Partners, in partnership with single-family office Berggruen Holdings, has acquired TLC Companies, a Brooklyn Center, Minnesota-based provider of outsourced HR services to the transportation industry. The seller was High Street Capital (with co-investors Cohesive Capital Partners, Marquette Capital Partners and Merion Investment Partners); the transaction represents a change-of-control buyout to support a platform build in the niche PEO/payroll market.

NuMSP, a national managed service provider, has acquired Zero1Zero, a Minneapolis-area MSP serving small and mid-sized businesses, as part of its ongoing strategy to build a nationwide MSP platform. The deal expands NuMSP’s presence in the Twin Cities market and brings Zero1Zero’s team and local customers onto the NuMSP platform.

CJ CheilJedang agreed to acquire U.S. frozen food maker Schwan's Company for $1.84 billion to establish a K‑Food expansion platform and scale its production, distribution and R&D footprint across North America. The deal excludes Schwan's Home Service division; financing includes approximately $1.34 billion from CJ funds and a $500 million loan backed by Schwan's Company, with 20% of shares from the major shareholder to be reinvested.