Acquisitions in South Dakota in 2023

World Insurance Associates LLC (headquartered in Iselin, New Jersey) acquired the business of American Trust Insurance, LLC of Huron, South Dakota on December 1, 2023. The deal expands World’s footprint in South Dakota by adding ATI’s eight local offices and capabilities across personal, commercial, life/health and crop/agricultural insurance.

Emko Capital recapitalized Scotchman Industries and Steelmax Tools and created the new holding company SMX Industrial Solutions to combine the two metal-fabrication equipment brands. Tecum Capital provided supporting debt and equity and Woodforest National Bank participated in financing; the new platform will broaden the companies' product portfolio and support future acquisitions across manufacturing, construction and energy end markets.

Toronto-based private equity firm Lynx Equity Limited has acquired Creative Surfaces, Inc., a Sioux Falls, South Dakota manufacturer, distributor and installer of commercial casework, countertops, cabinetry and signage. Founder and CEO Jud Pins (former owner) sold the business and will remain in management; terms were not disclosed. Creative Surfaces has approximately 123 employees and $40 million in annual sales, and Lynx intends to leverage its existing sister companies to provide operational support and pursue synergies, including entry into the gaming market.

World Insurance Associates LLC acquired Providence Financial, Inc., an independent insurance agency founded by Donald “Joey” Larsen, with the Providence team joining World effective September 1, 2023. The transaction expands World’s footprint into South Dakota and Nebraska; terms were not disclosed.

Standex International Corporation acquired Minntronix, a South Dakota-based designer and manufacturer of magnetic components, for approximately $30 million in cash. Standex said the acquisition expands its presence in fast-growing end markets such as 5G, smart grid, and industrial automation and is expected to be accretive in the first year.

Performance Food Group, Inc. (through an affiliate) has acquired Orion Food Systems Holdings, LLC (OLM), a manufacturer and distributor of pizza, sandwiches, breakfast and snack solutions for the convenience-store foodservice channel. One Rock Capital Partners sold its portfolio company OLM to PFG; financial terms were not disclosed. The acquisition expands PFG's foodservice capabilities and presence in the convenience-store channel.

Arthur J. Gallagher & Co. acquired Sioux Falls–based Hagan Insurance Group to expand its association and affinity benefits capabilities. The Hagan team will remain in place and operate under Gallagher's Affinity North America leadership to provide complementary expertise and cross-selling opportunities.

Inovar Packaging Group, a Kelso & Company-backed platform, has completed the acquisition of Cimarron Label and Western Printing, adding production sites in Sioux Falls and Aberdeen, South Dakota. The transaction expands Inovar’s Midwest footprint and capabilities in complex extended-content and booklet labels serving AgChem, lawn & garden and automotive customers.

Sonic Automotive, a Fortune 500 automotive retailer based in Charlotte, North Carolina, has acquired Black Hills Harley-Davidson, the leading Harley-Davidson dealership in Rapid City, South Dakota and host of the Rally at Exit 55. The acquisition expands Sonic's powersports portfolio and complements its strategy to grow its powersports segment and serve rally attendees and motorcycle enthusiasts.

PumpTech LLC, a Pike Street Capital portfolio company, has acquired Dakota Pump Inc, a Mitchell, South Dakota-based supplier of packaged pump stations and automated controls for the water and wastewater markets. The acquisition expands PumpTech's product portfolio, controls/SCADA capabilities and nationwide distribution reach as part of Pike Street's platform growth strategy.

Bansk Group has acquired a majority interest in Red's All Natural, a fast-growing clean-label frozen burrito and breakfast sandwich brand; terms were not disclosed. Stellus Capital Management provided senior debt financing and an equity co-investment to support the transaction, and founder/CEO Mike Adair will remain in leadership and retain a significant minority stake.

ICV Partners, a U.S. private equity firm, has acquired Sullivan Holding Company (Sullivans), a Sioux Falls, South Dakota-based designer and distributor of seasonal and outdoor home décor, from Fort Point Capital. Fort Point Capital realized its investment after nearly a decade of ownership during which Sullivans expanded its digital capabilities and completed two add-on acquisitions; TM Capital advised Sullivans on the transaction.

Frontier Growth, a growth equity firm, has made a strategic growth investment in Property Meld, a Rapid City, South Dakota–based property maintenance software platform. The capital will support Product Meld's continued growth and product expansion as the company serves property managers across over 450,000 units and more than 650 customers.