Acquisitions in Tennessee in 2020

Accel-KKR purchased OrthoBanc and will combine it with OrthoFi (a platform in which Accel-KKR previously invested) to create an integrated orthodontic patient acquisition and payment management provider operating as OrthoFi. The combined business will pair OrthoFi's patient acquisition and insurance management software with OrthoBanc's payment and revenue cycle management capabilities to serve orthodontic and dental practices across the U.S.

Goldman Sachs Merchant Banking Division has completed a significant investment in Inhabit IQ, joining existing backers Insight Partners, Greater Sum Ventures (GSV) and PSG. The capital will support Inhabit IQ's product innovation, growth acceleration and continued acquisition strategy while the current management team led by CEO Lisa Stinnett remains in place.

Assurant, Inc. acquired EPG Insurance, Inc. for $43 million in cash. The acquisition brings EPG's ~60 employees and its service-contract and commercial-equipment insurance capabilities into Assurant to expand service contract offerings, strengthen distribution through dealers and grow Assurant's commercial equipment segment.

Sphere, a Waud Capital Partners-backed payments and software company, has acquired Health iPASS, a Nashville-based cloud patient engagement and revenue cycle management (RCM) platform. The deal expands Sphere’s healthcare payments and patient engagement capabilities, combining integrated payments technology with Health iPASS’s check-in, payment and RCM software to improve provider collections and the patient financial experience.

American Landscaping Partners LLC (a portfolio company of Cold Bore Capital) acquired Nashville-based Color Burst Landscapes from the Frank F. Chalfont Trust and co-owner Brian Edwards. The deal is an add-on acquisition to ALP’s landscaping platform; Brian Edwards will remain as Sales Manager and retain an equity interest.

Patriot Growth Insurance Services has partnered with V.R. Williams & Company, a full-service insurance agency based in Winchester, Tennessee, adding the firm's 22 insurance professionals and proprietary national pilot car insurance program to the Patriot platform. The deal expands Patriot's property & casualty and employee benefits capabilities and furthers its geographic expansion in the Southeastern United States; Patriot is backed by growth equity investor Summit Partners.

TCDI, a Greensboro-based provider of eDiscovery, litigation management and cybersecurity services, has acquired Cicayda LLC and will integrate Cicayda's iDiscovery platform and social media collection tool Novara into its technology suite. The deal is an add-on acquisition to TCDI (which is backed by Trivest Partners) intended to broaden TCDI's eDiscovery, managed review and cybersecurity capabilities.

FreshEdge, the family of produce and specialty food distribution companies backed by Rotunda Capital Partners, has acquired McCartney Produce, a Paris, Tennessee-based distributor of fresh produce and specialty food products. The deal, which closed on November 18, 2020 (terms not disclosed), expands FreshEdge's presence in Tennessee, the Southeast and the Midwest; McCartney will continue to operate from its Paris facility with Raymon Randolph remaining as president.

Gryphon Investors has acquired Kano Laboratories, the Nashville-based maker of Kroil and AeroKroil penetrating oils and lubricants. Gryphon said it will build a branded specialty chemicals platform around Kano, appointing Sevan Demirdogen as CEO and naming Mike Irwin as Executive Chairman; financial terms were not disclosed.

Adaptec Solutions, a portfolio company of Wincove Private Holdings, has acquired Integrated Solutions, LLC, a Memphis-based provider of custom engineered-to-order material handling equipment and complex conveyor systems. The add-on expands Adaptec's conveyor capabilities, adds an attractively located facility in Memphis, and broadens regional service coverage.

The Chartis Group has acquired Jarrard Phillips Cate & Hancock, Inc., a Nashville-area strategic communications and change management firm serving healthcare providers. The acquisition expands Chartis’ advisory capabilities by adding Jarrard’s communications, change management and M&A communications expertise to support hospitals, health systems and other healthcare organizations.

Capitala Group announced it has exited its senior secured debt and minority equity investment in Optio Rx, a national owner and operator of specialty compounding pharmacies. The original investment was made in partnership with Cold Bore Capital and funded Optio Rx's roll-up of specialty pharmacies serving fertility, veterinary, dermatology, hormone replacement and hospice markets.

AEGIS Hedging Solutions has acquired Nexidus Commodities to expand its hedging capabilities into base and precious metals. The transaction was completed in partnership with private equity investor Trilantic North America, which recently invested in AEGIS to support its growth; AEGIS' founders remain significant equity holders and Baird Capital retains a material stake.

ICS Holdings, a portfolio company of Stone Arch Capital, has acquired Knoxville-based Funderburk Electrical Services. FourBridges Capital advised Funderburk on the transaction; founder Jack Funderburk will retain an equity interest and COO Earl Norman will continue to lead the business reporting to ICS CEO Steve Lyon.

Smarsh has agreed to acquire Digital Reasoning, a leader in natural language processing, AI, and machine learning, to combine Smarsh's electronic communications archiving and supervision capabilities with Digital Reasoning's advanced analytics. The deal—announced November 10, 2020—is intended to create a "Communications Intelligence" offering for risk, compliance and business insight; financial terms were not disclosed and the transaction was expected to close within 60 days. Barclays acted as exclusive financial advisor to Digital Reasoning.

Linen King, a Seaport Capital portfolio company, acquired a laundry processing facility in Ooltewah, Tennessee from Angelica. The acquisition adds ~25 million pounds of processing capacity, expands Linen King’s network to seven facilities, and extends its service footprint into southeast states including Alabama, Georgia, North Carolina and Kentucky.

Behavioral Health Group (BHG) has acquired Wellness Ambulatory Care in Knoxville, Tennessee; the clinic’s ~16 clinicians and staff will operate as BHG Medical Services – Knoxville. The acquisition expands BHG’s office-based medication-assisted treatment (MAT) and general psychiatric services in Tennessee; Dr. Clifford Davidson will remain as Medical Director.

Abry Partners made a recapitalization investment in Benefit Recovery Group (BRG), a Memphis-based tech-enabled payor services provider that specializes in healthcare subrogation and compensation recovery. The partnership will support BRG's sales investment and product development to accelerate growth; Abry partner T.J. Rose will join BRG's board.

IVX Health acquired Precision Healthcare, a Nashville-based operator of 12 ambulatory infusion centers in Tennessee and northern Arkansas. The acquisition was financed with preferred equity led by Linden Capital Partners and joined by McKesson Ventures, Health Velocity Capital, and Nueterra Capital; Precision was previously a subsidiary of BAI Healthcare Services (a portfolio company of EW Healthcare Partners).

Alkami Technology, a Plano, Texas–based cloud digital banking platform, acquired ACH Alert, a provider of ACH and electronic payments fraud prevention solutions, to add fraud-prevention and secure money-movement capabilities to its platform. The acquisition integrates ACH Alert's PRO-TECH and PRO-CHEX solutions to strengthen Alkami's treasury and payments security offerings for banks and credit unions.

Forward Air Corporation has agreed to acquire the assets of Value Logistics, Inc., a Memphis-based intermodal drayage provider, for $2.25 million. The acquisition (expected to close in October 2020) expands Forward Air's intermodal drayage capabilities and strengthens its presence in the Memphis market; Value Logistics generates approximately $6 million in annual revenue and operates with about 20 employees and ~30 independent contractors.

An affiliate of Roark Capital Management LLC has acquired ServiceMaster Brands from ServiceMaster Global Holdings for $1.553 billion. The transaction separates the franchised restoration and cleaning portfolio (ServiceMaster Brands) from the remaining business, which was renamed Terminix Global Holdings; Roark intends to leverage its franchising expertise to grow the platform, and Elane Stock will become CEO of ServiceMaster Brands.

American Science & Engineering (AS&E), a subsidiary of OSI Systems, acquired substantially all assets of Nucsafe, Inc., including its management and development team, technology portfolio, and key patents. The acquisition brings radiation monitoring, gamma/neutron detection and backscatter X‑ray capabilities into AS&E to support homeland security, non‑destructive testing and government customers; terms were not disclosed.

Forward Air Corporation entered into an agreement to acquire the assets of CLW Delivery, Inc. for $5.5 million in cash, a transaction expected to close in October 2020. The acquisition expands Forward Air’s Final Mile footprint into 14 additional markets and adds CLW’s in-home installation capabilities; CLW is expected to contribute about $20 million of revenue and $1 million of EBITDA on an annualized basis.

GI Partners is making a majority investment in American Residential Services (ARS), with existing investor Charlesbank Capital Partners and ARS management also making significant new investments. ARS, based in Memphis, Tennessee, operates more than 70 locally managed service centers across 23 states with approximately 6,500 employees and is the largest residential HVAC and plumbing services provider in the U.S. GI Partners said it will work with management and Charlesbank to accelerate growth and expand ARS’s national footprint both organically and via add-on acquisitions; the transaction is expected to close in Q4 2020.

NorthStar Anesthesia (through Anesthesia Consulting & Management, LP) completed the acquisition of select anesthesia services businesses from Surgery Partners, encompassing anesthesia operations at 25 locations across Georgia, Florida, Kentucky, North Carolina and Texas. The deal expands NorthStar's presence in its core markets and ambulatory surgery center footprint while enabling Surgery Partners to focus on its core short-stay surgical business.

Royston Group, a portfolio company of Industrial Opportunity Partners (IOP), has acquired the assets of ProImage Wholesale Signs, adding an 80,000 sq. ft. facility in Jacksboro, Tennessee. The site will serve as Royston Group/SignResource's East Coast manufacturing hub, expanding capacity and improving service and freight economics for convenience, grocery and other retail customers; terms were not disclosed.

American AllWaste LLC, a platform of NewHold Enterprises, acquired the assets of Highway Environmental, LLC, a Chattanooga-based provider of non-hazardous liquid-waste transportation and landfill leachate services. Financial terms were not disclosed; the deal expands AllWaste's footprint across the southeastern and midwestern United States and strengthens its liquid-waste transportation and leachate capabilities.

Premise Health, a leading direct health care provider, has signed a definitive agreement to acquire CareHere, a provider of wellness centers serving self-funded organizations. The deal expands Premise Health’s onsite, nearsite and digital care capabilities, broadens its public-sector and university reach, and brings the combined organization to roughly $1 billion in annual revenue and coverage of about 11 million eligible lives.

Knoxville-based private holding company Mollenhour Gross has acquired ADPma, LLC, an aerospace design, engineering, and manufacturing firm headquartered in Piney Flats, Tennessee. The seller-owners Rick Rathbun, David Blythe, and Rick Wedgeworth will remain with the business as Mollenhour Gross provides patient capital and resources to grow ADPma's product development and customer base.

StoneBridge Healthcare, a New Hope, Pennsylvania-based operator focused on turning around distressed hospitals, submitted a Letter of Intent to purchase Tennessee-based Erlanger Health System in a proposed $475 million transaction. The proposal would pay off liabilities, fully fund an $80 million pension shortfall and include $275 million of capital improvements over four years to stabilize and transform the health system.

Nautic Partners has formed HES Facilities LLC, a Knoxville-based education-focused facilities services platform, in partnership with management led by Buddy Helton and Charlie Spencer. In conjunction with the formation, HES acquired SMS, LLC (a regional facility services provider founded in 2007) and intends to grow the platform organically and via add-on acquisitions to serve K-12 and higher education customers nationally.

Integrity Marketing Group, the Dallas-based distributor of life and health insurance products, has acquired Southern Insurance Group, a Tennessee-based field marketing organization specializing in Medicare Advantage. Southern Insurance's leadership team (the Gilliam family) will become owners in Integrity; financial terms were not disclosed.

ATWEC Technologies, Inc. (OTC: ATWT) signed a binding letter of intent to acquire Memphis-based Level Three Security for cash and restricted stock, acquiring substantially all of Level Three's assets and liabilities. Level Three will become a new security division of ATWEC, adding residential and commercial alarm and surveillance capabilities as part of ATWEC's strategy to expand beyond vehicle child-safety products and into home and business security markets.

Cabins for YOU, a family-owned Gatlinburg vacation rental operator, has acquired Chalet Village and launched the Chalet Village by Cabins for YOU arm. The deal transfers about 10 employees and six contract cleaners to Cabins for YOU and expands its portfolio of short-term rental properties in the Ski Mountain area of Gatlinburg.

An affiliate of private investment firm SK Capital Partners has acquired a majority interest in Techmer PM and will recapitalize the Clinton, Tennessee-based materials company. Techmer PM founder and CEO John Manuck will remain a significant shareholder as SK Capital supports the company's global growth and capability expansion.

Proud Moments ABA, a Brooklyn-based provider of Applied Behavior Analysis (ABA) therapy, acquired Autism & Behavior Consulting Services (ABC), a Nashville-based behavioral therapy provider, in a transaction that closed July 20, 2020. Financial terms and seller details were not disclosed; the deal expands Proud Moments' national footprint in pediatric autism services.

MLM Medical Labs, a Great Point Partners portfolio company, acquired Memphis-based CirQuest Labs to establish a U.S. presence and create a globally integrated central lab platform. CirQuest — a specialist in assay development, biomarker testing, and central lab services for drug development — will join MLM’s global operations and its founder, Dr. Lisa K. Jennings, will take on a scientific leadership role.

Brixey & Meyer Capital (BMC) acquired Access Control Systems (ACS), a Nashville-based value-added distributor, integrator and installer of access control, gate automation, parking control and surveillance systems. The company was acquired from founders Dewayne and Allison Clayton; ACS will be led operationally by Dewayne Clayton with Chad Colony named CEO to drive strategic growth including acquisitions and geographic expansion.

Specialty Program Group LLC (SPG) has acquired Avant, LLC, a Tennessee-based transportation program administrator and wholesale brokerage with specialty cannabis and supermarket program divisions. Avant’s leadership will remain in place, with CEO Scott Hendricks assuming leadership of transportation within SPG; terms were not disclosed.

MML-backed CSI Group has acquired APSU Inc., a Tennessee-based managed-services provider specializing in IBM Power and IBM i cloud/platform services. The deal expands CSI's North American presence and strengthens its technical capabilities for mission-critical hybrid and multi-cloud IBM workloads.

Propel Insurance, a portfolio company of Flexpoint Ford, has acquired HealthCare Services (HCS), a boutique risk-management and insurance consulting firm based in Knoxville, Tennessee that specializes in senior living organizations. The acquisition expands Propel's senior living practice, strengthens its southeast presence (Knoxville and Charlotte hubs) and adds industry expertise to Propel's national platform; the combined agency will generate more than $120 million of annual revenue and operate seven U.S. offices.

Sunstar Insurance Group completed a majority recapitalization with BBH Capital Partners, with Sunstar management and key employees remaining significant shareholders. The investment provides capital to accelerate Sunstar's organic growth and M&A strategy; LNC Partners will remain a lender and Piper Sandler served as Sunstar's exclusive financial advisor.

The Mather Group (TMG), a family- and employee-owned wealth management firm headquartered in Chicago, has acquired Knoxville-based Resource Advisory Services, a fiduciary-only RIA with $116 million in assets under management. The deal expands TMG’s footprint in the Southeast and increases its AUM, while Resource Advisory Services’ founder David Lewis joins/partners with TMG under its fiduciary, fee-only platform.

Pinnacle Dermatology, a portfolio company of Chicago Pacific Founders, has acquired Lehman Advanced Dermatology in Clarksville, Tennessee. The single-location practice led by Dr. Kimberly (Kim) Lehman will join Pinnacle’s network as the firm continues to expand its Tennessee footprint — the 10th practice added in the state — with plans for additional De Novo locations and acquisitions.

Baldwin Krystyn Sherman Partners (BKS-Partners), the middle-market operating subsidiary of BRP Group, acquired substantially all assets of Tennessee-based Trinity Benefit Advisors, Inc. and Russ Blakely & Associates, LLC. The acquisitions expand BRP/BKS-Partners’ employee benefits and insurance distribution capabilities in the Southeastern United States and add a book of business that generated approximately $17.3 million in annual revenue.

Hub International Limited acquired the assets of Hatchett Insurance Agency, LLC, a family-owned independent insurance agency based in Winchester, Tennessee. The Hatchett team, led by CEO Nelson Hatchett, will join Hub Mid-South and remain in their current office; financial terms were not disclosed.

Clayton, Dubilier & Rice (CD&R) agreed to acquire Radio Systems Corporation, a Knoxville-based developer and distributor of durable pet products (brands include PetSafe, Invisible Fence, SportDOG and Kurgo). Terms were not disclosed; TSG Consumer Partners will sell its minority stake as part of the transaction, Radio Systems has more than 800 employees worldwide, and founder Randy Boyd will remain on the board. The deal received unanimous board approval and was expected to close around June 2020.

Palladium Equity Partners–backed Quirch Foods, LLC has acquired Butts Foods, a family-owned fresh protein distributor headquartered in Jackson, Tennessee. The add-on expands Quirch's footprint in the Southeast by bringing Butts Foods' five distribution facilities across Tennessee, Alabama and Mississippi into the Quirch platform.

Change Healthcare has exercised its option and acquired 100% of eRx Network for $212.9 million plus cash, with eRx generating approximately $67 million of revenue for the twelve months ended February 29, 2020. The acquisition expands Change Healthcare's pharmacy-focused technology and data capabilities, enabling tighter integration of pharmacy interactions with claims, billing and payment data to drive improved outcomes and new product opportunities.