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Our story began in 1994 when Keystone’s founders acquired a niche business services company and ran it as day-to-day executive management. They grew the business dramatically through organic growth and multiple accretive acquisitions and eventually merged it into a large publicly traded company. These entrepreneurial roots created what Keystone is today – we invest in market leading, niche companies in close partnership with management. We take each investment personally, investing our own capital rather than being beholden to outside investors. We do not have a short-term outlook, but instead, are in it for the long-haul exercising the patience and dedication needed to build highly successful companies. We have operating experience so we can roll up our sleeves next to our management partners, respecting and learning from their deep expertise while providing our full support and guidance.
Keystone’s investments all share one thing in common – a mutual commitment by management and Keystone to thoughtfully and patiently build a sustainable, market-leading business. Our story is just beginning. We are hungry to continue aggressively investing in first-class companies and teams, building “proud to own” businesses and enjoying the journey along the way.
Keystone is single-mindedly focused on working hand-in-hand with business leaders to create long-term value. Investing our own capital rather than raising capital from third parties affords us tremendous flexibility. It provides us with a risk-return profile in sync with management, and allows us to make decisions based on long-term goals while forging true partnerships with our management teams through good times and bad.
Our partnership approach extends to the third party service providers with whom we work. We have steadfast, long-standing banking relationships providing us strength, security, and reliable financial support, even in uncertain economic times. For investment bankers, brokers, and other intermediaries, we pride ourselves on only committing to what we can deliver. Our size, entrepreneurial approach, and lack of formal committees result in quick decisions and certainty to close for sellers which we have consistently demonstrated over the last 20+ years.
Providing a strong value proposition for everyone we do business with is paramount. It’s how we create value in ways beyond the numbers.
We believe existing management possesses inherent knowledge that is difficult – if not impossible – to replicate. As such, we rely on our management partners to run the day-to-day operations. However, as a business evolves, it can often benefit from an experienced partner well-versed in tackling the complexities and challenges of effectively managing a growing business. Keystone’s “roll-up our sleeves” mentality means that when needed, the firm is capable of providing day-to-day support to management across operations, finance, strategic planning, and acquisition execution. Keystone’s professionals bring a wealth of experience in operating and building businesses.
Because our reputation is paramount, Keystone only commits to doing what we know we can deliver. Our professionals have a proven, 30+ year track-record of successfully investing in sectors across the economy, as well as a sterling reputation and deep referral network across the financial markets. Keystone’s nimble size, entrepreneurial culture, and lack of internal approval committees allow us to be a quick and dependable buyer, often closing transactions in 45 days or less.
As the management team of a middle-market business, you don’t have an artificial time horizon on your business, so why should your financial partner? Keystone’s commitment to personal rather than third party capital ensures that management and its financial partner are fully aligned in making the right decisions for the long-term health and success of the business.
It’s easy to take unnecessary risks when you are investing outside investors’ money. However, like our management teams, Keystone has our own “skin in the game”. This simple fact creates a partnership dynamic that fosters complete alignment of interests and a disciplined, thoughtful approach to risk taking.
We are your partners with 100% alignment of interests and a long-term, patient orientation to develop and grow a market-leading business. We value what you have created and do not tell you how to run your business. We want to help you build on the foundation you have established while honoring the reputation and values that have made your company successful thus far.
Our approach to the transaction process is not long and drawn out. You should anticipate an efficient and reliable closing at the business valuation to which we commit.
Keystone’s reputation is our most significant asset, and we pride ourselves on delivering on what we say. As entrepreneurs ourselves, we understand the trials and tribulations of running your own business, and can relate to your clients who are often family-run and entrepreneur-led business owners. Our management-centered approach and experience patiently working alongside business leaders frequently differentiate us as an owner’s partner of choice. Intermediaries should expect to dialogue with a firm whose certainty of closing, at the value to which we commit, is second to none. Our due diligence centers around the key business characteristics critical to long-term success, which when combined with our long-standing financing and service provider relationships, supports an efficient transaction process.
Expect to partner with a firm that believes strong leadership is the single most important factor in determining our collective success. Direct ownership in the business is the ultimate motivator, and we incentivize key management team members with equity as an important ingredient for success.
We believe existing management possesses inherent knowledge that is difficult – if not impossible – to replicate. We respect your expertise and never in our history have we invested in a company without strongly supporting the management team. We have the utmost confidence in the management teams in whom we invest, and ultimately, strategic direction is your decision.
Financing partners should expect an equity investor whose commitment of personal capital means we stick with our companies through good times and bad. We have “skin in the game” in each investment, and work tirelessly to support our investments with operational support, strategic direction, and additional equity capital when merited.
Keystone has a unique approach to the investment business of using its own capital, taking a long-term view of building the business and supporting the operations, even when the return on its investment could be adversely impacted.
Arbour Group is a leading provider of regulatory compliance services for the global life sciences industry. Arbour specializes in the areas of software validation, packaged compliance solutions, and software testing/auditing to ensure client compliance with applicable global regulatory bodies. Arbour partners with name-brand clients in the pharmaceutical, biotechnology, and medical device fields both domestically and internationally.
Atlas Die is a manufacturer of steel rule and rotary dies for the packaging and folding carton industries.
Avalon is a manufacturer of investment castings and precision machined investment cast components. Through a series of acquisitions, Avalon has become one of the largest commercial and industrial investment casting manufacturers in the country.
Capsa Healthcare is the market leader in point-of-care IT, medication management systems and pharmacy automation. With an installed based over three hundred thousand units worldwide, Capsa Healthcare serves an array of healthcare environments including hospitals, extended care facilities, retail and mail-order pharmacies.
Cherry Hill Programs is the market leader in providing mall-based holiday photography services and products. Cherry Hill Programs manages on-premises Santa and Easter Bunny photography programs for over 330 mall locations throughout North America.
Controlled Products is a leading manufacturer of synthetic turf for recreational, leisure, landscape and athletic end-use applications.
CONSOR Engineers is a 650-person engineering firm providing services in the transportation and infrastructure sectors across the nation and in Canada. Formed in 2017 through the merger of AIA Engineers, Target Engineering Group, Infrastructure Engineers, and Johnson-Adams & Associates, CONSOR offers services in roadway/bridge design, planning, traffic engineering, intelligent transportation systems (ITS), construction engineering & inspection (CEI), bridge inspection (topside and underwater), drainage, marine/waterfront engineering, and disaster recovery services.
Costume Gallery is leading provider of dance costumes and dancewear. Costume Gallery strategically focuses on dancewear for recitals – the pinnacle showcase of students’ talents and education for the school year. The company designs, markets and manufactures recital costumes for 8,000+ dance studios around the country.
Costume Gallery was acquired by an undisclosed buyer in 2018.
Eagleton Engineering was an engineering services company who focused on the midstream/pipeline segment of the oil and gas industry.
Environments for Health, LLC (e4h) is an architectural design and facilities planning firm focused on the healthcare and life sciences markets. E4H has completed over 2,000 projects including community hospitals, for-profit hospitals, ambulatory surgery centers, rehabilitation facilities, medical office buildings, skilled nursing facilities, senior living communities, and hospices.
Greeley is a leading healthcare consulting firm that partners with hospital administrative and clinical teams to solve problems and improve processes related to accreditation and regulatory compliance, medical staff optimization and physician alignment, and credentialing and privileging. Greeley’s offering includes consulting services, interim staffing, business process outsourcing, education services, and external peer review. Greeley’s mission is to work with hospitals and hospital systems to optimize internal processes and workflows, simplify documentation, improve physician and patient satisfaction, and maximize profitability. The company serves hospitals and hospital systems of all sizes across all 50 states.
Judson Technologies was a manufacturer of detectors and sensors.
Keystone Bakeries was a supplier of cupcakes, donuts, and cookies to the in-store bakery channel.
Keystone Natural is a manufacturer of healthy, plant-based protein products including tofu, meatless veggie burgers, and other soy-based and vegetarian items. The Company sells into the retail and foodservice channels under the Nature Soy, VeggieLand, Franklin Farms, Jens & Marie, and Superior Tofu brands.
KFT is the world leader in the design, installation and service of live fire training simulators and related technologies. The Company provides critical fire training technologies to fire academies, municipalities, governments, and industrial customers on a global basis. KFT’s industry leading products are installed in locations throughout the world.
Integrated marketing and technology development agency with deep expertise in the healthcare sector.
Movilitas Consulting provides end-to-end supply chain, track and trace and mobility solutions. Movilitas Consulting solutions enhance customers’ control of their extended supply chain, help ensure compliance with global regulations, and optimize field-based business processes helping to accelerate the pace of business performance.
Naxxos Group (2014): Acquisition of Naxxos Group which is comprised of two businesses, Inxites and Produmex. Inxites is a leading global SAP service and IT solution provider. Produmex is a certified SAP partner that develops software solutions for integrating business and operational processes.
Peak-Ryzex provides end-to-end enterprise mobility, managed services, printing and mobile data capture solutions for performance-driven organizations focused on the optimization of supply chain and field-based business processes. Peak-Ryzex’s in-depth industry-specific experience, state-of-the-art solutions and managed services, and exemplary customer support provide transformational business solutions and results that deliver greater ROI and outstanding value.
Polymicro Technologies was a manufacturer of optical fibers for industrial applications.
Record Masters was a leading national provider of healthcare record storage and retrieval services.
Rocore Inc. is a manufacturer of industrial heat exchangers and provider of heat exchanger repair services. The company’s products consist primarily of highly engineered radiators, heat exchangers and cooling products made of copper, aluminum and brass. Rocore serves a diverse customer base in the following end markets: on/off highway, rail, after market and power generation.
Scott Group is a designer and manufacturer of high end, custom carpets and rugs. They are a leading supplier to the business aviation, high-end residential and commercial (including luxury retail), and yacht markets both in the U.S. and abroad.
Vidaris was a building sciences consulting firm encompassing curtain wall/façade, sustainable design and failure analysis disciplines.
I have represented two businesses that were acquired by Keystone, and I can say without question they are one of the most straightforward, thoughtful, efficient and effective buyers I have had the chance to deal with. They have and will continue to represent a very compelling and unique outcome for my clients.
Megan C. Anderson joined Keystone Capital in 2009. Prior to Keystone, Megan was an Executive Assistant with UBS Private Wealth Management in Florida and Chicago. Megan’s previous experience includes working for Morgan Stanley and Discover Financial Services.
Tyler Collingbourne joined Keystone Capital in 2018. Previously, Tyler worked as an investment banking analyst at TM Capital Corp. While at TM, Tyler focused on middle-market mergers and acquisitions. Prior to TM, Tyler was an analyst at Alvarez & Marsal working on turnaround engagements with public and private companies.
Brian C. Chung joined Keystone Capital in 2007 and serves as Chief Financial Officer of the firm with primary responsibility for portfolio company finance and accounting support and acquisition financial due diligence. Prior to Keystone Brian was Chief Financial Officer of Ultra Care, Inc. where he also served on the Board of Directors.
His previous experience includes over 10 years in public accounting, with Stoy Hayward in London, and Crowe Chizek in Chicago as a manager in the audit and mergers & acquisitions departments. He also worked in the due diligence group of Sanwa Business Credit’s commercial finance department.
Kent P. Dauten co-founded Keystone Capital in 1994 and serves as a Chairman of the firm. As part of Keystone, Kent served as the C.E.O. and President of the firm’s first portfolio company, Record Masters, building it into the nation’s leading healthcare records management company. After the merger of this business into Iron Mountain, he served as the President of their Healthcare Division. Kent’s previous experience includes fifteen years with First Chicago Venture Capital and its spin-off Madison Dearborn Partners, Inc., a multi-billion dollar private equity firm which he also co-founded.
With these firms he completed investments in 28 companies in various industries, including food processing, healthcare services and industrial manufacturing.
Erik Gernant joined Keystone Capital in 2015. Previously, Erik was an Analyst and Associate in the investment banking division of JMP Securities LLC in San Francisco. While at JMP, Erik was heavily involved in mergers and acquisitions, corporate divestitures and equity capital market transactions for public and private companies primarily in the software and technology-enabled services sectors.
David A. Greer joined Keystone Capital in 2005 and serves as a Managing Director of the firm with primary responsibility for supporting Keystone companies with operational assistance and strategic direction. Prior to Keystone, he was General Manager of the RFID business unit for Motorola, Inc. and Executive Vice President of Participate Systems, Inc.
His previous experience includes advising Fortune 100 clients as a member of The Boston Consulting Group and the mergers & acquisitions department of Goldman Sachs. Additionally, David served for five years as a surface warfare officer in the U.S. Navy.
Scott L. Gwilliam co-founded Keystone Capital in 1994 and serves as a Managing Partner of the firm with primary responsibility for our investment activities. Scott served as the Chief Financial Officer of the firm’s first portfolio company, Record Masters, from its founding in 1995 through its sale to Iron Mountain in 1997.
Prior to Keystone, Scott was a member of the investment banking and corporate finance department at Kidder, Peabody & Company where he was actively involved in initial public offerings, mergers and acquisitions, and corporate reorganizations. He also worked for Madison Dearborn Partners, Inc., a leading Chicago private equity firm, as well as with several entrepreneurial businesses in various roles.
Dennis J. Howe joined Keystone Capital in 2013 and serves as a Principal of the firm with a primary focus on supporting portfolio companies with operational and strategic direction. Prior to Keystone, he was with Danaher as Vice President of Business Management and Project Planning for Videojet and Vice President and General Manager of Thomson Linear Components.
His previous experience includes working for The Boston Consulting Group on strategy assignments for industrial, financial and consumer goods clients and at BASF Corporation working as an Operations Manager and as a Product Development engineer.
Chaoran Jin joined Keystone Capital in 2009 and serves as a Managing Director of the firm. Prior to Keystone, she worked for Owens Corning as the Site Leader and General Manager of two large manufacturing operations in Chicago.
Chaoran’s previous experience includes working for McKinsey & Company advising a broad range of clients in consumer, retail and technology sectors, the mergers & acquisitions division of Citigroup in Hong Kong, and product development at Motorola’s mobile division.
Erica Lester joined Keystone Capital in 2017. Previously, Erica was an investment banking analyst at Lincoln International. While at Lincoln, Erica focused on middle-market mergers and acquisitions in the business services sector.
Karen J. Mason joined Keystone Capital in 2016. Previously, Karen worked as an Executive Assistant with Indeck Power Equipment Company in Wheeling, Illinois and Chicago Equity Partners in Chicago, Illinois.
Kevin Overby joined Keystone Capital in 2016. Previously, Kevin worked as an investment banking analyst in the technology & business services group at Robert W. Baird & Co. While at Baird, Kevin focused on mergers and acquisitions, equity offerings and other financial advisory services for public and private companies. Prior to Baird, Kevin was an Investment Analyst at Aether Investment Partners in Denver.
Bill A. Sommerschield joined Keystone Capital in 2014 and serves as a Principal of the firm with a primary focus on Keystone’s investment activities.
Prior to joining Keystone, Bill was a Vice President at Lake Capital, a Chicago-based private equity firm, where he focused on the firm’s investment activities and served on the Board of Directors of Engine Group, ORC International, HMI, and Addison Group. Bill also worked in the investment banking divisions of Morgan Stanley and Credit Suisse where he was actively involved in mergers and acquisitions as well as debt and equity financings in the business services, industrial, and education industries. Prior to Morgan Stanley, Bill was a Co-Founder of Wonder LLC, an experiential children’s retail company, where he led concept development, strategic and financial planning, and capital raising activities.
Jason S. Van Zant joined Keystone Capital in 2008. Prior to Keystone, Jason was an associate with Lincoln International, a middle-market investment banking firm headquartered in Chicago. While with Lincoln, Jason focused on middle-market mergers and acquisitions in the consumer products, food and industrial sectors.
Andrew C. Wehr joined Keystone Capital in 2014 and serves as a Principal of Finance of the firm with primary responsibility for portfolio company finance and accounting support and acquisition financial due diligence. Prior to Keystone Andrew was International Accounting Manager of Groupon, Inc.
His previous experience includes serving as Chief Financial Officer for Midwest Mechanical Group Inc, as well as working for Ernst & Young for over 5 years in its advisory and assurance practice.
Keystone Capital Announces the Sale of Rocore Inc.
Keystone Capital is Pleased to Announce the Following Internal Promotions!
Vidaris Announces Acquisition Of Lucius Pitkin, Inc.
Capsa Solutions, LLC Acquires Artromick International, Inc.
Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed a partnership with MERGE (“MERGE” or “the Company”), a marketing and technology services agency with more than 270 employees across offices in Chicago, Boston, and Atlanta.
MERGE is an integrated agency combining strategy, creativity, and technology to address clients’ business challenges and customer engagement needs. The Company’s capabilities include business & digital strategy, brand development, creative advertising, digital marketing execution, digital design & content creation, data analytics, custom technology development, and media services. Merge delivers omni-channel solutions across market sectors with specific expertise in healthcare. Ron Bess will be named Executive Chairman and will remain as CEO of MERGE. Patrick Venetucci, a 30-year industry veteran with previous global executive roles at Leo Burnett Worldwide and Dentsu Aegis, has joined the agency as CEO partnering with Ron to lead the business forward together. For more information on MERGE, please visit mergeworld.com.
Terms of the transaction are not being disclosed. Senior debt financing was provided by Wintrust Bank, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and MERGE was advised by JEGI in connection with this transaction.
Keystone Capital is pleased to announce that its portfolio company E4H Architecture, LLC (“E4H”) has completed a merger with RSG Architects, LLC (“RSG”). Terms of the transaction are not being disclosed.
E4H is a leading design, architecture, planning and consulting firm focused exclusively on the healthcare industry. The firm has 160 healthcare planners and architects in offices across the United States and has collectively completed more than 6,500 healthcare projects over the past four decades. The E4H portfolio includes over $6 billion in projects, encompassing community hospitals, academic medical centers, life science laboratories, R&D space, children's hospitals, mental health facilities, ambulatory care centers, rehabilitation facilities, assisted living, and medical office buildings. Services include healthcare planning, architecture, and interior design. In 2016, E4H was ranked by Modern Health as the largest architecture firm focused exclusively on the healthcare market. Please visit www.e4harchitecture.com for more information.
RSG is a niche design, architecture and planning firm focused on the healthcare industry based in Chantilly, Virginia. RSG was founded by principals John Scoggin, Jeremy Bartz and Richard Whitaker and is a leader in the D.C./Northern Virginia area. RSG complements E4H’s strategy of adding regional leaders to the platform and realizing synergies across a national base of clients and projects.
Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC, and legal counsel was provided to E4H by Honigman Miller Schwartz and Cohn, LLP.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in Arbour Group, LLC (“Arbour” or “the Company”).
Arbour, based in Oakbrook Terrace, Illinois, is a leading provider of regulatory compliance services for the global life sciences industry. Arbour specializes in the areas of software validation, packaged compliance solutions, and software testing/auditing to ensure client compliance with applicable global regulatory bodies such as the U.S. FDA and the EU EMA (European Medicines Agency). Arbour partners with name-brand clients in the pharmaceutical, biotechnology, and medical device fields both domestically and internationally.
Arbour was originally founded in 1997 as a spin-out of accounting and tax advisory firm AM&G. In addition to its headquarters in the U.S., Arbour maintains sales offices throughout North America and international locations in Dubai, UAE and Manila, Philippines. For more information on Arbour, please visit the company’s website at www.arbourgroup.com.
Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and Arbour Group was advised by Scott-Macon Investment Banking in connection with this transaction.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that its portfolio company, Keystone Natural Holdings, LLC (“KNH”), has completed its acquisitions of J.P. Veggies, Inc. (“VeggieLand”) and Superior Tofu Ltd. (“Superior”). VeggieLand and Superior join Nature Soy in KNH’s portfolio of leading manufacturers of healthy, plant-based protein products.
Keystone initially acquired Nature Soy, a Philadelphia-based producer of high-quality soy and vegetarian food products, in June 2016. Nature Soy uses non-GMO ingredients and proprietary formulas to create tofu, soy milk, and rice noodles with unique and desirable flavor profiles. The Company supplies specialty retail and foodservice customers primarily on the East Coast and throughout the Midwest. For more information on Nature Soy, visit www.naturesoy.com.
VeggieLand is a leading manufacturer and distributor of meatless veggie burgers and appetizers. Founded in 1994 and based in Parsippany, New Jersey, VeggieLand has developed a diverse and growing portfolio of healthy meatless products sold into retail and foodservice channels through the Franklin Farms and Jens & Marie brands as well as private label. The partnership with VeggieLand will provide KNH with a broader product portfolio, greater channel reach, and expanded product innovation capabilities. For more information on VeggieLand, visit www.veggieland.com.
Superior Tofu is a Vancouver-based manufacturer and supplier of tofu, soy milk, and other soy-based products. Founded in 1982, Superior has an established, loyal base of specialty and mainstream retail and foodservice customers throughout Canada. With the unique combination of its authentic tofu-making heritage and commitment to world-class food safety, Superior is a natural fit alongside Nature Soy. For more information on Superior Tofu, visit www.superiortofu.com.
Terms of the transactions are not being disclosed. Senior debt financing was provided by Wintrust Bank and legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP. Tully & Holland, Inc. advised VeggieLand and CCC Investment Banking advised Superior Tofu in connection with these transactions.
Keystone Capital, Inc. ("Keystone"), a Chicago-based private investment firm, is pleased to announce that its portfolio company Rocore Inc. (“Rocore”) has been acquired by funds advised by Triton, a leading European private investment firm. Terms of the transaction have not been disclosed.
Rocore is a manufacturer of industrial heat exchangers and provider of heat exchanger repair services. The company’s products consist primarily of highly engineered radiators, heat exchangers and cooling products which are sold into a wide variety of markets including on/off highway, petrochemicals, rail, and power generation. Rocore represented Keystone’s fourth successful exit of a highly engineered industrial products business, following the prior exits of Polymicro Technologies (2007), Judson Technologies (2008), and Atlas Die (2017). For more information on Rocore, please visit www.rocore.com.
Over the course of Keystone’s investment in Rocore, substantial enhancements in segmentation, go-to-market strategy, and capital efficiency were completed. In addition, Keystone assisted Rocore with the acquisition of CTI Industries, a leader in shell and tube heat exchanger repair services, in 2015.
Rocore and Keystone were represented by Lincoln International in the transaction. Legal advice was provided by Honigman Miller Schwartz & Cohn LLP.
Keystone was founded in 1994 with the goal of acquiring high quality, market-leading niche businesses. Unlike a traditional private equity firm utilizing a fund-based investment model, Keystone operates more like an entrepreneurial holding company – utilizing the personal capital of its partners rather than outside third-party capital, capitalizing its investments with conservative capital structures, and with its principals actively involved in supporting the management teams of its portfolio companies. Keystone’s investments all share one thing in common – a mutual commitment by management and Keystone to thoughtfully and patiently build a sustainable, market-leading business. Our primary offices are located in Chicago, Illinois with a small office in Shanghai, China. More information can be obtained from our website at www.keystonecapital.com.
Keystone Capital, Inc. ("Keystone"), a Chicago-based private investment firm, is pleased to announce that its portfolio company Capsa Solutions, LLC (d/b/a Capsa Healthcare or “Capsa”) has been acquired by Levine Leichtman Capital Partners (“LLCP”). Terms of the transaction have not been disclosed.
Capsa is a leading provider of mobile workstations, medication management products, and pharmacy automation solutions for healthcare settings worldwide. The Company’s workflow solutions improve efficiency and effectiveness for over 3,000 customers, including leading health systems, senior care communities, and major retail and institutional pharmacies. Capsa is headquartered in Portland, Oregon and has additional production facilities in Columbus, Ohio and Agua Prieta, Mexico.
Capsa was the culmination of a 17-year investment horizon for Keystone, during which sales and EBITDA increased 13-fold through a combination of organic growth and add-on acquisitions. The business originally began with Keystone’s purchase of IRSG Holdings in 2000, followed by the acquisitions of MMI Med Carts (2008), Artromick International (2009), Kirby Lester (2014), and Rubbermaid Healthcare (2015). Capsa is led by CEO Andrew Sherrill and a talented management team across the business who will continue to lead Capsa moving forward.
Capsa was represented by Harris Williams & Co. in the sale of the business. Legal advice was provided by Kirkland & Ellis LLP and Honigman Miller Schwartz & Cohn LLP.
Keystone Capital is a private investment firm which operates with the goal of acquiring high quality, market-leading niche businesses and partnering with these businesses over a long-term horizon, where appropriate. Unlike a traditional private equity firm utilizing a fund-based investment model, Keystone utilizes the personal capital of its partners rather than outside third-party capital, capitalizes its investments with conservative capital structures, and engages actively in supporting the management teams of its portfolio companies. Keystone has completed over 25 platform investments in its history, supported by over 70 add-on acquisitions. Keystone’s primary offices are located in Chicago, Illinois. More information can be obtained from our website at www.keystonecapital.com.
Keystone Capital, Inc. ("Keystone") is pleased to announce that it has exited its investment in Atlas Die, LLC (“Atlas”) after 14 years of successful ownership. Terms of the transaction have not been disclosed.
Atlas is a manufacturer of steel rule and rotary dies for the packaging and folding carton industries. Headquartered in Elkhart, IN, Atlas began producing steel rule dies in 1952. Atlas pioneered the use of lasers in die production and has a broad product offering targeted at various converting industries, such as paperboard, labels, business forms, flexible circuits, greeting cards, and gaskets. Bernal, Inc. (“Bernal”), a subsidiary of Atlas, is a leader in the manufacture of engineered rotary dies for many of the same end markets and is based in Rochester Hills, MI.
2016 was a record year for Keystone Capital. We acquired more businesses, deployed more capital and traveled more miles supporting our portfolio than at any time in our history. We are extremely proud of what we have accomplished and even more optimistic about our continued success in 2017. We could not have achieved these results without the great work of our staff, and with that we are excited to announce the following well-deserved promotions at Keystone: Chaoran Jin and Jason Van Zant have been promoted to Managing Director, and Dennis Howe and Bill Sommerschield have been promoted to Principal.
Chaoran joined Keystone in 2009. Chaoran has been the lead professional supporting the operational and acquisition needs of our consumer products business, Costume Gallery, and most recently, our Asian foods platform, Nature Soy. She has also played an active role with Peak Technologies and Movilitas Consulting, and is the lead professional managing our activities and office in China. “Chaoran brings Keystone deep foundational insight into business strategy development. She has also created tangible value to our broader portfolio by driving our Asian sourcing and sales initiative,” commented David Greer, Managing Director at Keystone. Prior to Keystone, Chaoran worked for Owens Corning, McKinsey & Company, Citigroup and Motorola.
Jason joined Keystone in 2008, and over his time at Keystone has closed 15 transactions for the firm. Jason is the primary lead professional on E4H, our health care architectural firm, and The Scott Group, our luxury goods business. “Jason has been a huge asset to our acquisition efforts over the years. He has significantly enhanced our marketing and new business development approach, and more recently brought the same energy to the overall support of some of our businesses”, commented Scott Gwilliam, Managing Director and Co-Founder of Keystone. Prior to Keystone, Jason worked for Lincoln International.
Dennis joined Keystone in 2013 and has had a significant impact on many of our portfolio companies, including Capsa Solutions, Avalon, Atlas Die and Rocore. From his days at Danaher as an executive, Dennis has a deep background in acquisition integration, operational efficiency and process change management. In addition to his time at Danaher, Dennis' previous experience includes working for The Boston Consulting Group on strategy assignments for industrial, financial and consumer goods clients and at BASF Corporation working as an Operations Manager and as a Product Development engineer.
Bill joined Keystone in 2014 and has played a key role with several of our more recent platform companies. He is the lead professional on The Greeley Company and Cherry Hill Photo, and also led the negotiations on the acquisitions of Nature Soy and Rubbermaid Healthcare. Prior to joining Keystone, Bill was a VP at Lake Capital, where he focused on the firm’s investment activities and served on the Board of Directors of Engine Group, ORC International, HMI, and Addison Group.
The last five years has been a particularly exciting time at Keystone Capital. We have significantly increased our level of acquisition activity with both new platforms and add-ons to our existing portfolio, and this increased activity has driven the need for even greater portfolio involvement. We could not have accomplished this without the tremendous dedication and effort of Chaoran, Jason, Dennis and Bill.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in, and partnership with, The Greeley Company (“Greeley” or “the Company”).
Greeley is a leading healthcare consulting firm that partners with hospital administrative and clinical teams to solve problems and improve processes related to accreditation and regulatory compliance, medical staff optimization and physician alignment, and credentialing and privileging. Greeley's offering includes consulting services, interim staffing, business process outsourcing, education services, and external peer review. The Company's mission is to work with hospitals and hospital systems to optimize internal processes and workflows, simplify documentation, and improve physician and patient satisfaction. Headquartered in Danvers, Massachusetts, Greeley serves hospitals and hospital systems of all sizes across all 50 states. For more information on Greeley, please visit www.greeley.com.
“Keystone is delighted to partner with the exceptional team at Greeley to build on their tradition of excellence in solving complex problems for hospitals across the country,” commented Bill Sommerschield, Vice President at Keystone Capital. “Greeley is the latest example of our continued focus on partnering with leading professional services firms, and we look forward to supporting management as they continue to expand Greeley’s market presence and enhance their comprehensive portfolio of world-class services,” added Scott Gwilliam, Managing Director at Keystone Capital.
Terms of the transaction are not being disclosed. Senior debt financing was provided by The PrivateBank, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and The Greeley Company was advised by Duff & Phelps Securities, LLC in connection with this transaction.
Keystone Capital, Inc. ("Keystone") is pleased to announce that it has completed an investment in, and partnership with, Nature Soy, Inc. ("Nature Soy" or "the Company").
Nature Soy, a major supplier of soy and vegetarian food products to the US market, has been producing high quality soy products since 1990. Located in Philadelphia, the Company primarily serves the mid-Atlantic region with distribution channels reaching as far west as Chicago. Nature Soy's products include both traditional and specialty tofu, soy milk, rice noodles and soy puffs, all of which can be found in major Asian grocery stores, supermarkets and natural food stores, as well as restaurants in the Northeast. The Company strives to produce the best-tasting and freshest products, using non-GMO soy beans and its proprietary formulas to create a unique and desirable flavor profile.
Nature Soy co-owners SunFei Ye and YatSun Wen will continue to be shareholders in the Company and will play integral roles in the day-to-day operations and management of the business. "We have been actively seeking the right partner to help us take Nature Soy to the next level, and Keystone's commitment to our management team and employees, experience in the food industry, and financial support for growth initiatives makes them an ideal partner for Nature Soy," said SunFei Ye and Yatsun Wen.
Terms of the transaction are not being disclosed. Senior debt financing was provided by Wintrust Bank, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and Baker Tilly Capital, LLC advised Nature Soy in connection with this transaction.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that Morris Switzer Environments for Health (“Morris Switzer”), a portfolio company of Keystone, has transformed into Environments for Health Architecture (“E4H”) by acquiring Ascension Group Architects (“AGA”) of Dallas, TX, and partnering with DaSilva Architects (“DaSilva”) of New York, NY.
Keystone originally invested in Morris Switzer, the New England branch of E4H, in 2015. Morris Switzer has been a full service architecture firm committed exclusively to the design of healthcare facilities in New England for over 25 years. AGA, founded in 2001, develops award-winning architecture and interior design for healthcare facilities across the southern and western United States. AGA specializes in rapid design processes, large project implementation, and award-winning design for physicians and corporate/for-profit healthcare organizations. DaSilva, based in New York, has 35 years of healthcare design innovation experience. DaSilva has worked extensively at most of the major medical centers in the tri-state area of New York, New Jersey, and Connecticut, providing client-centered service, patient-centered healthcare design, and interior design services.
The combined E4H will offer comprehensive and unprecedented national architectural services in healthcare design, with an expanded depth of experience, talent, and geographic reach. The firm has 130 healthcare planners and architects in offices across the United States, and has collectively completed more than 5,000 healthcare projects over the past three decades. The E4H portfolio includes over $5 billion in projects, encompassing community hospitals, academic medical centers, life science laboratories, R&D space, children's hospitals, mental health facilities, ambulatory care centers, rehabilitation facilities, assisted living, and medical office buildings. Services include healthcare planning, architecture, and interior design. E4H will maintain offices in Boston, Dallas, New York, Portland (Maine), and Burlington (Vermont).
E4H is interested in further partnerships with and acquisitions of complementary firms servicing the health and life sciences sectors which would enhance the geographic coverage and/or the portfolio of E4H.
Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone and E4H by Honigman Miller Schwartz & Cohn LLP.
Keystone Capital, Inc. is a private investment firm based in Chicago, Illinois that manages in excess of $300 million in investment capital. Formed in 1994, its mission is to acquire and build a portfolio of exceptionally high quality, mid-sized businesses that are leaders in their niche markets. Keystone is differentiated by its investment of personal as opposed to third-party capital, which results in a longer investment horizon of 10+ years and an ability to enter into true operating partnerships with the professional management teams of its companies.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in, and partnership with, Target Engineering Group, Inc. (“TEG” or “the Company”).
Target Engineering Group is a leading provider of construction management, professional engineering and construction inspection services in Florida. The Company focuses on providing engineering and inspection services related to bridges and roadwork, partnering predominately with the Florida Department of Transportation on both statewide and district-specific projects. Headquartered in Coral Gables, TEG has a statewide presence with over 140 employees across eight offices as well as several temporary offices for large projects. For more information on Target Engineering Group, please visit www.targetengineering.com.
Terms of the transaction are not being disclosed. Senior debt financing was provided by The PrivateBank, and legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in and partnership with Cherry Hill Holdings, Inc. (“Cherry Hill Photo” or “the Company”).
Cherry Hill Photo is the U.S. market leader in providing mall-based holiday photography services and products. With a rich history dating back to 1961, Cherry Hill Photo manages on-premises Santa and Easter Bunny photography programs for over 325 mall locations throughout North America. The Company is headquartered in Marlton, New Jersey with an additional location in Ontario, Canada. For more information on Cherry Hill Photo, please visit www.cherryhillphoto.com.
“We are thrilled by the opportunity to partner with the management team at Cherry Hill Photo to build on their rich, decades-long history of providing world-class holiday experiences. The management team will continue to operate the business with the same enthusiasm and excellence in service they have always delivered, with Keystone Capital supporting the Company’s growth and development”, Kent Dauten, Keystone Capital Managing Director.
Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP.
Peak-Ryzex, Inc, a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of M-Netics.
M-Netics is an end-to-end enterprise mobility solutions provider and developer of the industry leading IM2 enterprise mobility software suite. M-Netics solutions cover retail omni-channel (in-store and back office), supply chain, mobile worker and proof of delivery requirements. Customers include leading logistics providers, manufacturers, retailers and field service organizations. Please visit www.mnetics.co.uk for more information.
Peak-Ryzex provides end-to-end enterprise mobility, managed services, printing and mobile data capture solutions for performance-driven organizations focused on the optimization of supply chain and field-based business processes. Peak-Ryzex’s in-depth industry-specific experience, state-of-the-art solutions and managed services, and exemplary customer support provide transformational business solutions and results that deliver greater ROI and outstanding value. Peak-Ryzex serves as a trusted business partner for some of the world’s largest companies, while also supporting local and regional customers with an extensive coverage footprint throughout North America and Europe. For more information on Peak-Ryzex, visit www.peak-ryzex.com.
“The acquisition of M-Netics is aligned with our strategy to continue offering customers the most complete end-to-end enterprise mobility solutions portfolio in the industry,” said Ross Young, CEO of Peak-Ryzex. “M-Netics will bring complementary products, partnerships and services to our portfolio while allowing us to expand our capabilities into mobile software application development and strengthens our offerings in specific verticals such as retail,” added Young.
Together, Peak-Ryzex and M-Netics will provide the full lifecycle services to plan, procure, provision, activate, manage and support commercial and rugged mobile devices, carrier services, and mobile software applications while delivering business data and insights to improve operational efficiencies and increase employee productivity – whether it be in the supply chain, out in the field workforce or on the retail floor. “After carefully considering all of our options for accelerating the growth of M-Netics, I am extremely excited for us to join forces with Peak-Ryzex and be part of one of the largest, most dynamic international mobile solutions providers in the market today,” said Tim Hamilton-Davies, founder and CEO of M-Netics. “The combination with Peak-Ryzex provides our business with additional scale and immediate access to supplementary resources in the UK and North America to offer our customers enhanced levels of value, support and service,” added Hamilton-Davies.
Terms of the transaction are not being disclosed. Senior debt financing was provided by The PrivateBank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.
Capsa Solutions (“Capsa”), a portfolio company of Keystone Capital and a leading provider of mobile computing carts, medical carts, and medication management systems to the healthcare industry, is pleased to announce the completion of its acquisition of Newell Rubbermaid Inc.’s Healthcare Division. (“RHC”). RHC provides technology-enabled products including mobile computing carts, medication carts, and wall-mounted IT workstations to healthcare facilities worldwide. The acquisition marks Keystone Capital’s sixth successful corporate carve-out.
The acquisition of RHC is the Capsa’s fourth acquisition in the last eight years, and brings together two leaders in the healthcare IT and computing industry. RHC’s position has been built on their suite of premium healthcare computing products and reputation for unmatched customer service, which is highly complementary to Capsa’s existing product portfolio and equally outstanding customer service. Combined, Capsa now offers the broadest product suite in the industry, and the addition builds on Capsa’s unique ability to provide tailored computing technology solutions to acute care and long-term care partners worldwide.
This latest addition to Capsa’s product suite solidifies it as a leader in the healthcare technology and computing industry. Keystone Capital and Capsa continue to pursue accretive healthcare IT and technology-enabled products acquisition opportunities with the goal of further enhancing the success and leadership enjoyed by Capsa today.
Legal counsel was provided by Kirkland & Ellis LLP.
Peak-Ryzex, Inc, a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of Manage Mobility, LLC.
Headquartered in Alpharetta, GA, Manage Mobility is an end-to-end provider of mobile procurement, logistics, and carrier management services and developer of the ManagedTel™ software platform. ManagedTel is a software-as-a-service (SaaS) platform that serves as a central information repository of all mobile device and carrier management services on an international basis for procurement, reporting, asset management, mobile business intelligence and telecom expense management. Please visit www.managemobility.com for more information.
Peak-Ryzex provides end-to-end enterprise mobility, managed services, printing and mobile data capture solutions for performance-driven organizations focused on the optimization of supply chain and field-based business processes. Peak-Ryzex serves as a trusted business partner for some of the world’s largest companies, while also supporting local and regional customers with an extensive coverage footprint throughout North America and Europe. Please visit www.peak-ryzex.com for more information.
“Manage Mobility provides Peak-Ryzex with an expanded suite of managed mobility services to help our enterprise customers better maintain, manage and support their commercial and rugged mobile devices, carrier services, and mobile applications,” said Ross Young, CEO of Peak-Ryzex.
Peak-Ryzex plans to leverage the Manage Mobility’s technology platform to provide customers a 360° view of their mobile device and printer estate through one centralized portal. All key managers and employees of Manage Mobility will join Peak-Ryzex. “As we evaluated all of our options for securing growth capital for our business to capitalize on the unprecedented growth in the Managed Mobility Services market, joining forces with Peak-Ryzex presented us with a tremendous opportunity to combine our history of innovation with Peak-Ryzex’s industry-leading capabilities in end-to-end enterprise mobility, managed services, printing and mobile data capture solutions,” said Mike McGuire, founder and CEO of Manage Mobility.
Senior debt financing was provided by The Private Bank, and legal counsel was provided by Fredrikson & Byron, P.A.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in and partnership with the shareholders of MorrisSwitzer Environments for Health, LLC (“MorrisSwitzer” or “the Company”).
MorrisSwitzer is a leading architecture and design firm focused exclusively on the healthcare and life sciences industries. From its headquarters in Williston, Vermont and additional offices in Boston, Massachusetts and Portland, Maine, the Company services a client base consisting of leading healthcare, academic and private institutions in the Northeastern U.S. MorrisSwitzer has an impressive portfolio of healthcare-focused work, having completed over 3,000 projects across over 130 hospitals and medical facilities since inception. Morris Switzer was founded in 1990 by Dan Morris, and today is led by Dan and six additional partners including Jill Boardman, Jennifer Arbuckle, Jason Carney, Thomas Morris, Bill Repichowskyj, and Dale Taglienti. For more information on Morris Switzer, please visit the Company’s website at www.morrisswitzer.com.
MorrisSwitzer will be pursuing further partnerships with and acquisitions of complementary firms with the completion of this investment. Areas of interest for further investment post-closing will include other regional market leaders in healthcare architecture, as well as firms specializing in the laboratory and life sciences markets.
Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.
Rocore Holdings (“Rocore”), a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of CTI Industries, Inc. (“CTI” or “the Company”).
Headquartered in Orange, CT, CTI is a service provider focused on the highly specialized repair and refurbishment of heat exchangers and steam condensers. CTI’s proprietary repair methodologies are used in the refinery, marine, power generation, and utility industries. The Company counts blue-chip customers in all of these industries as its customer base, and has installations in over 20 countries in the past five years alone. In addition to its North American operations, CTI operates a division in Dubai, United Arab Emirates. Please visit www.cti-ind.com for more information on CTI.
Rocore is a leading designer and manufacturer of heat exchangers and related equipment used to cool air, water, or oil for a variety of applications. Rocore’s products are manufactured out of five North American facilities and are sold to original equipment manufacturers and aftermarket users across a diverse range of industries, including heavy duty truck, power generation, industrial, rail, military, bus and construction equipment. Please visit www.rocore.com for more information on Rocore.
Senior debt financing was provided by The Private Bank, and legal counsel was provided by Kirkland & Ellis LLP.
Keystone Capital, Inc. ("Keystone") is pleased to announce that its portfolio company IBA Holdings, LLC, d/b/a Vidaris and LPI (“Vidaris”, “LPI” or the “Company”) has been acquired by Cortec Group Fund V, L.P. (“Cortec”). Terms of the transaction have not been disclosed.
Founded nearly 90 years ago and headquartered in New York, New York, Vidaris and LPI are leading specialty architectural and engineering consulting firms, respectively, providing highly technical, value-added advisory, inspection and testing services. The Company employs over 200 professionals in eight offices worldwide and serves as an independent third-party advisor for leading developers, property owners, industrial operators, utilities, architects and engineers. The Company's multidisciplinary, integrated service offering includes three major segments: (i) Building Envelope: wall, window, roof and restoration consulting; (ii) Engineering: fitness-for-service and failure analysis; and (iii) Energy: building sustainability and energy efficiency consulting.
Keystone Capital has a high level of domain expertise in the architecture, engineering and technical consulting industries and continues to pursue investments in these fields. In addition to Vidaris, past and present investments in the industry include Eagleton Engineering and Kidde Fire Trainers.
Keystone Capital is pleased to announce the addition of Bill Sommerschield and Andrew Wehr to the team.
Bill Sommerschield joins the firm as a Vice President, and will be a member of Keystone’s investment team. His primary responsibility will be the identiﬁcation, sourcing, and execution of new acquisition and investment opportunities for Keystone and its partner companies.
Prior to joining Keystone, Bill was a Vice President at Lake Capital, a Chicago-based private equity firm, where he focused on the firm’s investment activities and served on the Board of Directors of Engine Group, ORC International, HMI, Addison Group, and Soil Safe. Bill also worked in the investment banking divisions of Morgan Stanley and Credit Suisse where he was actively involved in mergers and acquisitions as well as debt and equity offerings in the industrial, business services, and education industries. Prior to Morgan Stanley, Bill was a Co-Founder of Wonder LLC, an experiential children’s retail company, where he led concept development, strategic and financial planning, and capital raising activities.
Bill can be reached at bsommerschield@keystonecapital.com or (312) 219-7973.
Andrew Wehr joins the firm as a Vice President of Finance. Andrew’s focus will be working with Keystone’s operations and finance team, with a specific responsibility for Keystone’s portfolio company finance and accounting support. In this role, Andrew will work directly with the finance and accounting leaders of Keystone’s portfolio companies.
Prior to joining Keystone, Andrew served as International Accounting Manager of Groupon, Inc. His previous experience also includes serving as Chief Financial Officer for Midwest Mechanical Group Inc., as well as over 5 years in Ernst & Young’s advisory and assurance practice.
Andrew can be reached at awehr@keystonecapital.com or (312) 219-7980.
Scott Group Custom Carpets, a portfolio company of Keystone Capital, is pleased to announce the acquisition of Hokanson Carpets. Terms of the transaction were not disclosed.
Founded in Houston in 1987 by Larry Hokanson, Hokanson Carpets is a leader in the high end residential carpeting market. Hokanson operates six showrooms in major cities across the United States. Some of the most important rug and carpet projects in North America, Europe, the Middle East, Australia and Asia have Hokanson rugs complementing the décor. Leading projects include the restoration of the Russian Royal Palaces in St. Petersburg, the office of Canada’s Speaker of the House and the Burj Khalifa – the world’s tallest building – in Dubai.
The combination of Scott Group and Hokanson will not only strengthen the U.S. showroom presence of both companies in Los Angeles, New York, Chicago and Dallas, but expand it by establishing a presence in Houston and Boston. In addition, the combined company will be able to leverage a broader array of products through its network of showrooms and interior designer relationships throughout the world.
“Together, Scott Group and Hokanson comprise the largest U.S. provider of luxury handmade rugs and carpets,” said Michael Ruggeri, president and CEO of Scott Group. “We have long been admirers of Larry Hokanson and his company and believe that by coming together, we can lead the industry by providing an incredibly broad array of products for the interior design and architectural community,” added Ruggeri.
The acquisition of Hokanson is consistent with Scott Group’s mission to deliver a broader set of products to its current customer base and to expand its markets of focus. Keystone, Ruggeri and the Scott Group leadership team will continue to evaluate opportunities to add to Scott Group’s portfolio of brands through acquisitions or joint ventures. “Scott Group is poised to continue expanding and will aggressively pursue other future opportunities that enhance value for our world-class client base,” noted Ruggeri.
Founded in 1969, Scott Group Custom Carpets is an industry leader in the design and production of custom carpets and rugs to the architectural design trade. Using the world's finest natural fibers, Scott Group combines creativity and meticulous craftsmanship in the design and production of luxury carpets and rugs. Scott Group owns and operates a fully integrated manufacturing facility in Grand Rapids, Michigan with 14 artists and a total staff of 200 employees. Scott Group carpets can be found in the finest aircraft, luxury retail stores, corporate offices, yachts and residences in the world, including the State Dining Room and Oval Office in the White House. For more information, visit www.scottgroup.com.
Capsa Solutions, LLC, a leading provider of medication management systems, mobile computing carts and medical cart platforms for healthcare facilities, today announced the acquisition of Kirby Lester, based in Lake Forest, Illinois. Kirby Lester is a leading provider of automated medication dispensing solutions in retail, institutional, hospital, and ambulatory pharmacy settings. Capsa Solutions is a portfolio company of Keystone Capital, Inc.
Capsa Solutions has grown by expanding its product offering and reach into an array of healthcare markets both domestically and internationally. The addition of Kirby Lester products to Capsa Solutions further expands this offering in the medication dispensing category and provides a wider product portfolio to both Capsa and Kirby Lester customers.
The combined product portfolios of Capsa Solutions and Kirby Lester will uniquely position the company to address the varied requirements of medication management in modern healthcare. Additionally, the new organization will provide customers and business partners a strong sales and service organization that works as a cohesive team, with broader development capabilities to deliver a wider array of product options to improve medication management and control. Kirby Lester will continue to operate under the same brand name as a division of Capsa Solutions.
Capsa Solutions is a worldwide leader in developing and delivering innovative products to mobilize the healthcare clinical and medication control processes. With combined product lines that include medication carts, medical carts, computer carts, and processing solutions, Capsa Solutions offers its markets decades of experience and a unique ability to meet the demands of diverse healthcare environments. Headquartered in Portland, Oregon, Capsa Solutions has an additional management, manufacturing, and distribution facility in Columbus, Ohio. To learn more, visit www.capsasolutions.com.
Founded in 1971, Kirby Lester is a leading developer and provider of medication tablet/pill counters and medication dispensing technology. Kirby Lester products significantly improve medication counting accuracy and reduce labor time associated with medication dispensing and prescription fulfillment. Kirby Lester products can be found in more than 40,000 retail, hospital, specialty, and mail order pharmacies in nearly 40 countries. To learn more, visit www.kirbylester.com.
PMI is a leading manufacturer of high-precision, small, thin-walled investment castings, ranging from fractions of an ounce to over 20 lbs. The company’s proprietary casting technologies and almost 70 years of specialized engineering expertise have made PMI a preferred provider to the aerospace industry as well as for general industrial applications requiring complex small parts with thin walls and tight tolerances. PMI is also renowned for its long history of innovation in both process and materials associated with the investment casting industry.
“The partnership between Avalon and PMI demonstrates our commitment to building an industry-leading investment casting company capable of servicing a broad array of markets and adding increased value to our current and future customers from multiple facilities around the country,” said Doug Ciabotti, CEO of Avalon and leader of the newly combined business.
Avalon Precision Castings grew out of the merger of Avalon Castings of Cleveland, Ohio and Craft Cast Company of Jackson, Wisconsin to become one of the investment casting industry’s leading providers of precision-cast parts up to 100 lbs. Avalon services blue-chip OEM customers in the general industrial, pump and valve, oil & gas, food and dairy, military and capital equipment industries with industry-leading turnaround times and cost-effective, value-added services including a dedicated in-house machine shop and tooling operation.
"Together, Avalon and PMI represent a new era for investment casting companies greater than the sum of their parts," added David Dolata, owner of PMI. "Creating more opportunities and expanding capabilities are key to delivering what current and prospective customers have been asking for: new ways for the investment casting process to solve their ever-more-demanding metal parts challenges. Avalon's acquisition of PMI puts the combined company in a unique position to service customers needing metal shapes with value, quality, a wider size envelope and capabilities to offer parts complete to print within one company."
The combined company will operate four advanced manufacturing facilities in Ohio and Wisconsin, all featuring state-of-the-art automation and robotics to produce precision castings from over 200 different ferrous and non-ferrous alloys. Combined company certifications include ISO 9001:2008, PED, NADCAP, and ITAR. Together, the combined company will represent one of the largest enterprises in the commercial/industrial/aerospace segment of the investment casting industry.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed the acquisition of Kidde Fire Trainers (“KFT” or “the Company”), a business unit of United Technologies Corporation’s Building & Industrial Systems Group. Terms of the transaction are not being disclosed.
KFT is the world leader in the design, installation and service of live fire training simulators and related technologies. The Company provides critical fire training technologies to fire academies, municipalities, governments, and industrial customers on a global basis. KFT’s industry leading products are installed in locations throughout the world. KFT is headquartered in Montvale, NJ with global offices located in Barlborough, United Kingdom and Aachen, Germany. For more information on KFT, please visit the Company’s website at www.kiddefiretrainers.com.
Keystone Capital, Inc. ("Keystone") is pleased to announce that its portfolio company Eagleton Engineering, LLC ("Eagleton") has been acquired by Jacobs Engineering Group Inc. ("Jacobs"). Terms of the transaction have not been disclosed.
Eagleton is a full service engineering firm offering planning, design, and construction services for transportation systems and facilities used in natural gas and gas liquids, petrochemicals, carbon dioxide, other industrial gases and crude oil. Over a history spanning nearly five decades, Eagleton has developed a leading reputation for designing and managing the construction of pipelines, terminals, compressor and pump stations, oil and gas production and processing facilities, slug catchers and two-phase flow systems. Eagleton employs approximately 130 employees, residing at its Houston, Texas headquarters and Denver, Colorado offices, as well as in the field.
Eagleton was originally acquired by Keystone and Eagleton management in December 2011. During the course of the investment, Keystone and management successfully recruited additional management, executed meaningful project activity, grew the business by almost 100%, and opened an office in Denver, Colorado to service the Rocky Mountain region.
"Although we predict continued upside for Eagleton due to strong end market fundamentals in the oil and gas midstream infrastructure industry, Eagleton is strategic to the Jacobs organization and is expected to effectively supplement their aggressive growth plans," commented Scott Gwilliam, Managing Director, Keystone Capital, Inc. "It was a pleasure to work with Jacobs in this transaction, and we have no doubt that the company is in good hands. We wish our management team, employees and the Jacobs organization continued success in the future."
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed a recapitalization and partnership with the shareholders of Scott Group Custom Carpets, Inc. (“Scott Group” or “the Company”).
Scott Group is the U.S. market leader in the design and manufacture of hand-made and machine-made custom wool (and silk and cashmere wool/silk blend) carpets and rugs for a variety of luxury applications. The Company is a leading supplier to the business aviation, yacht, and high-end residential and commercial markets both in the U.S. and abroad. With a rich history dating back to 1969, Scott Group produces 100% American made carpets at its headquarters in Grand Rapids, Michigan and has a network of showrooms throughout the U.S. For more information on Scott Group, please visit the Company’s website at www.scottgroup.com.
The prior ownership team consisting of Michael Ruggeri (President), Richard Ruggeri (Vice President) and Timothy Hill (Vice President, Operations and Finance) will remain significant shareholders and will continue to lead the day to day operations of the Company into the future.
Scott Group will be pursuing acquisitions of complementary businesses with the completion of this recapitalization. Areas of interest for the Company include suppliers of luxury fabrics and interior products serving similar end markets (i.e. business jets and interior design).
Keystone Capital, Inc. (“Keystone”) is pleased to announce the addition of Dennis Howe and Charles Shreve to the Keystone team.
Dennis Howe joins the firm as a Vice President, and will be a member of Keystone’s operations group. In this role, Dennis will be an integral part of supporting the management teams of Keystone’s family of companies with operational, strategic, and other initiatives.
Prior to joining Keystone, Dennis was with Danaher Corporation as Vice President of Business Management and Product Planning for Videojet and Vice President and General Manager of Thomson Linear Components. His previous experience includes working for The Boston Consulting Group on strategy assignments for industrial, financial and consumer goods clients and at BASF Corporation working as an Operations Manager and as a Product Development engineer.
Dennis can be reached at dhowe@keystonecapital.com or (312) 219-7979.
Charles Shreve joins the firm as an Associate. His primary focus will be in Keystone’s acquisition and business development group, with responsibility for identiﬁcation, sourcing, and execution of new acquisition and investment opportunities for Keystone and its partner companies.
Prior to joining Keystone, Charlie worked as an investment banking analyst in the industrials group at Jefferies & Co. in New York. While with Jefferies, Charlie focused on mergers and acquisitions, debt financings and equity raises for public and private companies. Prior to Jefferies, Charlie worked as an investment banking analyst at Cowen Group in New York.
Charlie can be reached at cshreve@keystonecapital.com or (312) 219-7978.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed two add-on acquisitions thus far in 2013.
Peak-Ryzex, a Keystone Capital holding since 2011, acquired Movilitas Consulting AG in May 2013. Peak-Ryzex is a market-leading provider of end-to-end enterprise mobility, managed services, printing and mobile data capture solutions for organizations focused on optimization of supply chain and field-based business processes. Based in Mannheim, Germany, Movilitas Consulting AG is widely considered one of the early pioneers of successfully implementing global templates for SAP Track & Trace projects. Movilitas Consulting's SAP Track & Trace customers include many of the world's largest industry-leaders in the areas of pharmaceuticals, tobacco and chemicals.
"In 2012 our acquisition of Catalyst strengthened our resources and focus on SAP supply chain and logistics execution solutions in North America, this investment in Movilitas Consulting expands our commitment to the SAP user community in the areas of SAP Track & Trace and mobility solutions, ultimately expanding our solutions and geographic footprint for our multi-national SAP customers," said Ross Young, CEO of Peak-Ryzex. "The board and management team of Movilitas Consulting AG as well as the division name and strategy will remain the same but they will now be able to leverage the larger scale and coverage of the Peak-Ryzex organization in North America and Europe," added Young.
For more information, see www.peak-ryzex.com and www.movilitas.com.
Atlas Die, a Keystone Capital holding since 2003, acquired Bernal, Inc. in July 2013. Headquartered in Elkhart, IN, Atlas Die is the largest North American producer of steel rule, flexible and solid rotary tooling servicing all aspects of the converting industry with six facilities located strategically across the United States. Bernal, headquartered in Rochester Hills, MI, is the leading North American manufacturer of solid and segmented rotary dies for the packaging and specialty converting industries. This transaction will bring together two of the most well-respected leaders in the packaging, consumer, and specialty converting industries, and will give customers a complete tooling suite of steel rule, flexible and solid rotary dies as well as system design and integration. Bernal had previously operated as a division of North American Cerutti Corporation, a wholly-owned subsidiary of the Cerutti Group (Officine Meccaniche G. Cerutti S.p.A.), a world leader in the manufacturing of packaging and printing machinery.
For more information, please see www.atlasdie.com and www.bernalrotarydies.com.
Terms of these transactions are not being disclosed. Senior debt financing for each transaction was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.
Keystone Capital is pleased to announce that after almost 20 years in the northern Chicago suburbs, we are relocating our offices to downtown Chicago. Our new office will be located within the city’s famous “Loop” area, and put our firm closer to key relationships in the lending, service provider, and deal-making communities in the Chicago area. The move is effective as of April 15th.
Please update your records to reflect our new location, and please make sure to stop by during your next trip to Chicago!
Keystone Capital is aggressively pursuing add-on acquisitions for our existing portfolio and investments in new platforms. With our unique structure of investing personal as opposed to institutional capital, we are actively seeking business owner/operators and management teams to enter into a true partnership with.
Vidaris Holdings, LLC (“Vidaris”), a portfolio company of Keystone Capital, is pleased to announce the acquisition of Lucius Pitkin, Inc. (“LPI”). Terms of the transaction have not been disclosed. The transaction marks another significant step in the evolution of Vidaris to becoming a leader in professional consulting services to the architectural, engineering, and construction communities.
In addition, the transaction represents another expedited closing for Keystone, having been completed in time for calendar year end and in less than 40 business days from Letter of Intent to closing.
Founded in 1885, LPI is a leading consulting firm specializing in the areas of fitness for service, failure analysis, non-destructive testing, and metallurgical analysis. LPI’s mission critical services are utilized across a variety of market segments, including infrastructure, transportation, nuclear power, energy and utilities, general industrial, and litigation/insurance support. LPI employs approximately 55 professionals and is headquartered in New York, NY with additional offices in Amesbury, MA and Richland, WA. LPI is led by principals Robert Vecchio, Joseph Crosson, Thomas Esselman, and Paul Bruck. “We are quite excited about the opportunity for LPI’s principals and employees to join the Vidaris family,” stated Robert Vecchio, Principal of LPI. “Lucius Pitkin has a storied past and proud history, and with Vidaris, will continue to have a bright future.” Please visit www.luciuspitkin.com to learn more about LPI.
LPI will form a new, distinct brand within the Vidaris platform, which consists of IBA (exterior wall consultancy and inspection group specializing in building facades, roofing, water-proofing, renewable energy and non-destructive testing technologies), and Viridian (energy efficiency, sustainability, commissioning and regulatory compliance services). “The addition of LPI to the Vidaris platform of companies is yet another step towards the goal we identified when we partnered with Keystone – to build a market leading consulting firm capable of delivering multiple high value, niche services to demanding clients,” remarked Israel Berger, CEO of Vidaris. Please visit www.vidaris.com to learn more about the Vidaris platform.
Although LPI will become a division of Vidaris, very little will change as a part of the transaction. The four principals of LPI will become principals of Vidaris. Robert Vecchio will become CEO of Lucius Pitkin, Inc. and join the board of Vidaris. All employees and offices of LPI will be retained, and day-to-day operations will be unaffected. The combined firm (IBA, Viridian and LPI) will employ approximately 175 professionals with headquarters in New York City and four locations throughout the country.
Keystone Capital continues to seek independent, third party providers of niche, highly specialized engineering consulting services with greater than $5 million of revenue as add-on acquisition/growth strategy targets for Vidaris. Please contact one of the Keystone team members below with any opportunities that might be a fit as a part of this strategy.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Craft Cast Holdings, LLC (“Craft Cast”), has completed a merger with Avalon Precision Casting Company (“Avalon”). Terms of the transaction are not being disclosed.
Avalon is a leading manufacturer of precision investment castings based in Cleveland, Ohio. Founded in 1986 by John Kemper, Sr. and Mel Kman, Avalon is one of the leading niche, independent investment casting foundries in its region. Avalon services blue-chip customers in the general industrial, pump and valve, oil & gas and capital equipment industries. All employees, management, and operations of Avalon will remain unchanged in the partnership with Craft Cast.
“The partnership between Craft Cast and Avalon demonstrates our commitment to building a leading investment casting platform capable of servicing a broad array of end markets and customers from multiple facilities across the country,” remarked Al Scargall, CEO of Craft Cast.
“We are extremely pleased with what this partnership will mean for both Avalon and Craft Cast,” said Mel Kman, President of Avalon. “Although our business will remain the same with no noticeable impact to our key stakeholders, we are very excited to continue servicing our customers as a part of a larger, very capable platform,” added Kman.
Craft Cast is a manufacturer of investment castings in a variety of alloys (including stainless steel, aluminum, and others), as well as a provider of value-added machining and finishing services. Craft Cast’s customer base includes original equipment manufacturers (OEMs) in the consumer products, mining, and general industrial product industries. Craft Cast is headquartered in Jackson, Wisconsin and has been a partner company of Keystone Capital since 2008. For more information, visit www.craftcastco.com.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, PEAK Technologies, Inc. (“PEAK”), has completed the acquisition of Catalyst from CDC Global Services. Catalyst is a highly specialized SAP services partner and a leader in the design and implementation of SAP supply chain management solutions. Catalyst is a specialist in various SAP services and applications, including warehouse management, extended warehouse management, task and resource management, and transportation management.
“The PEAK acquisition of Catalyst further demonstrates our commitment to the SAP supply chain management market and greatly strengthens the depth and breadth of resources we can deploy to help our customers enhance the usability and functionality of their SAP supply chain components,” said Ross Young, CEO of PEAK Technologies.
By acquiring Catalyst, PEAK greatly expands its SAP supply chain management services practice by adding some of the most skilled SAP technical and functional consultants in the SAP logistics execution systems market. Catalyst has developed several applications, such as Yard Management Drag and Drop and Cross Carrier Parcel Integration (Catalyst XPS), which expands PEAK’s portfolio of SAP supply chain management offerings.
“We are extremely excited to join forces with an industry leader in PEAK that is committed to building on its SAP supply chain management practice,” said Jim Ferencik, Vice President of Global Services with Catalyst. “Catalyst can now leverage PEAK’s coverage footprint throughout North America and Europe while gaining access to additional capabilities such as the PEAK Automation Controller (PAC) software solution and the host of additional products and services PEAK now brings into the Catalyst portfolio of offerings,” added Ferencik.
PEAK Technologies is a systems integrator of supply chain automation, inventory management and mobility solutions delivering tangible return on investment to some of the world’s largest corporations. PEAK’s primary applications include solutions for warehousing, manufacturing, distribution, and field-based operations. PEAK’s portfolio of solutions and services include business process consulting, SAP supply chain and mobility systems integration, mobile technology professional services, printing/media solutions, and life-cycle support services. PEAK Technologies has locations throughout North America providing a comprehensive “foot print” for national, multi-site life cycle service and support. For more information, visit www.peaktech.com.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, PEAK Technologies, Inc. (“PEAK”), has completed the acquisition of Ryzex, a leading mobile technology solutions company providing advice, uptime, and insight on improving productivity to thousands of enterprise customers. Ryzex, based in Bellingham, WA, has been in business for over 20 years and is one of the largest integrators in the Auto ID industry with over 200 employees, more than 2,000 customers, and a geographic footprint that spans the United States, Canada, and Europe.
“The union of PEAK and Ryzex will combine the scope, scale, and capabilities of two of the industry’s leading integrators into one platform that will provide customers with an unparalleled level of geographic coverage, and an expanded portfolio of solutions and services,” said Ross Young, CEO of PEAK Technologies.
By acquiring Ryzex, PEAK Technologies greatly expands its geographic reach and gains additional capabilities in areas such as mobility managed services, advanced mobile technology support services, and other innovative mobile device offerings. For Ryzex, PEAK’s coverage footprint throughout North America also greatly expands Ryzex’s geographic reach and provides additional capabilities including SAP supply chain integration, onsite break/fix repair services, advanced printer/media offerings, and additional resources focused on WLAN security, management, and professional services.
“Adding Ryzex into the PEAK Technologies portfolio further strengthens our commitment to our customers and business partners. Our combined platform will provide an infrastructure of technical resources, project delivery capabilities, and ongoing mobile/printer device life cycle support services that is unmatched in this industry. Our new platform will help customer’s reduce the risk associated with large-scale project deployments and provide the advice, insight, and support to ensure our customers reach their desired business objectives,” added Young.
Ryzex is the leading expert in deploying and managing enterprise wide mobility solutions both locally and globally. Ryzex advises on and implements world-class solutions utilizing over 20 years of proven best practices, ensures the solution is always up and running for maximum operational uptime, and provides insight so investments continue to perform better. Offerings include mobile worker applications, rugged hardware, device communications, automated data collection with barcode and RFID, networking support, and complete managed services. Ryzex is headquartered in the United States and has offices across Europe and Canada. To date, Ryzex has helped over one million users of mission critical mobile technology across a broad set of markets to get the most from their investment. For more information, visit www.ryzex.com.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed two new platform acquisitions during the fourth quarter of 2011. PEAK Technologies, Inc. (“PEAK”), an integrator of automated identification/data capture (“AIDC”) technologies into supply chain environments, was acquired on October 31, 2011 from an affiliate of Platinum Equity. Less than two months later, Keystone partnered with management to acquire Babcock Eagleton, a pipeline and transmission facilities engineering firm serving the energy industry, from Babcock International Group PLC and renamed the firm Eagleton Engineering, LLC (“Eagleton”).
PEAK is a leading systems integrator of supply chain automation, inventory management, and mobility solutions. PEAK improves the flow of business for enterprises through delivery of innovative supply chain and mobility solutions by helping enterprises plan, design, implement, and maintain systems that ensure customers meet their desired business objectives. PEAK’s portfolio of solutions and services include business process consulting, SAP supply chain and mobility systems integration, mobile technology professional services, printing/media solutions, and life-cycle support services. PEAK offers both on-site and depot repair services to support AIDC technologies and forms handling equipment. The company’s customer base includes Fortune 500 multi-national organizations and mid-market companies across a diverse array of industries. PEAK is based in Columbia, Maryland and employs over 300 employees across North America. More information on PEAK can be found at www.peaktechnologies.com.
Eagleton is a full service engineering firm offering planning, design, and construction services for transportation systems and facilities used in natural gas and gas liquids, petrochemicals, carbon dioxide, other industrial gases and crude oil. Over the past 45 years, Eagleton has developed a leading reputation for designing and managing the construction of pipelines, terminals, compressor and pump stations, oil and gas production and processing facilities, slug catchers and two-phase flow systems. Eagleton employs approximately 115 employees, residing both at its Houston, Texas headquarters and in the field. More information on Eagleton can be found at www.eagletoninc.com.
Capsa Solutions, LLC (“Capsa”), a portfolio company of Keystone Capital, Inc. (“Keystone”), recently completed the sale of its Retail Division to Pipp Mobile Storage Systems, a portfolio company of Prospect Partners. The Retail Division of Capsa, which operates as International Retail Services Group (“IRSG”), is the industry leader in hanger-management systems, inventory transfer racks, tables, and carts provided to leading national apparel retailers.
Keystone Capital originally partnered with the management team of IRSG to purchase the Company from Avista Corporation in December 2000. For the first seven years of Keystone’s ownership, IRSG operated as a standalone investment supplying the apparel retail and healthcare markets with its innovative inventory management and transportation products. In April 2008, IRSG merged with MMI Med Carts, a family-owned leader in the long-term care medication storage cart industry, giving IRSG a significant entry into the healthcare industry. Subsequent to the MMI merger, the combined business was renamed Capsa Solutions and operated as the Retail Division (IRSG) and the Healthcare Division (MMI). In November 2009, Capsa acquired Artromick International, the market leader in medication carts and an emerging leader in acute care technology carts, an acquisition which added an Acute Care and International division to Capsa and culminated in an enterprise which was predominantly healthcare oriented.
Keystone Capital and Capsa Solutions are actively seeking acquisitions of businesses supplying products and technologies to the healthcare industry. Capsa’s strategy is to be a market leader within multiple durable healthcare product segments, including (but not limited to) storage, transport, and technology/information management products used “in and around the patient room.” Please contact one of the Keystone team members below with any acquisition or partnership opportunities that might be a fit with this strategy.
NEW YORK, April 18, 2011 – Israel Berger & Associates LLC (IBA), a leading consulting and inspection group specializing in building envelope technologies, announced a merger with Viridian Energy & Environmental LLC (Viridian), a leading consulting group specializing in energy efficiency and environmentally responsible design/construction. “We are very excited about this merger with Viridian. This is the first step in our strategy to build the leading building services consulting firm. The combination of IBA and Viridian allows us to integrate our shared expertise in building envelope, energy efficiency, and building commissioning to offer a holistic approach to our customers in these building sciences," says Israel Berger, President of IBA. IBA has been a partner company of Keystone Capital, Inc. since a 2006 recapitalization.
Israel Berger and Marc Weissbach will continue in their positions of President and COO, respectively, of IBA. Adrian Tuluca will remain the Managing Principal of the combined energy consulting and commissioning practice and will join the Board of IBA. Viridian’s Associate Principals will join IBA’s senior management team and all Viridian employees will remain with the company as part of the transaction. The combined company will employ approximately 120 employees and be headquartered in New York City with offices in Connecticut, Massachusetts, Florida, Nevada, Missouri, and California. For more information, visit IBA's website at www.ibany.com and Viridian’s website at www.viridianee.com.
IBA’s vision is to execute a “roll up” strategy within the building sciences industry that will ultimately reduce gaps within the complex, fragmented specialty consulting industry and offer clients the ability to have a single leader manage related services, thereby ensuring technical excellence, integration, and consistency of delivery. Keystone Capital continues to seek independent, third party providers of architectural or building engineering consulting services with greater than $5 million of revenue as add-on acquisition/growth strategy targets for IBA. Please contact one of the Keystone team members below with any opportunities that might be a fit as a part of this strategy.
Keystone Capital, Inc. (“Keystone”) is pleased to welcome Eric Holter to the firm as an Associate. Eric’s primary focus will be in Keystone’s acquisition and business development group, with responsibility for identification, sourcing, and execution of new acquisition and investment opportunities for Keystone and its partner companies.
Prior to joining Keystone, Eric was an investment banker with Duff & Phelps in Chicago where his primary areas of focus were in executing sell-side and buy-side M&A transactions in the consumer product, food, and manufacturing industries. He holds a bachelors degree from Indiana University.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed a recapitalization of Costume Gallery, Inc. in partnership with owners Ellen and Richard Ferreira. Costume Gallery is a leading designer, manufacturer and marketer of costumes and related accessories, specifically focused on the global dance recital industry. Costume Gallery’s customer base includes thousands of independent dance studios in both the U.S., as well as over 15 countries worldwide. More information on Costume Gallery can be found at www.costumegallery.net.
The transaction represented another Keystone Capital closing in under 45 days from Letter of Intent. Additionally, Costume Gallery is the most recent example within a long history of Keystone’s recapitalizations with skilled owner-operators and talented entrepreneurs. “In Keystone we’ve found the perfect partner to continue Costume Gallery’s long term growth initiatives. We look forward to building the brand together,” remarked Ellen Ferreira, President of Costume Gallery.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that Keystone Bakery Holdings, LLC (“KBH”), has been acquired by Maplehurst Bakeries, LLC (“Maplehurst”), a subsidiary of George Weston Limited (“Weston”) (TSX: WN), for a total consideration of approximately $185 million. KBH is a leading national supplier of frozen baked goods to the in-store bakery and foodservice industries and was originally purchased by Keystone and KBH management in early 2001.
Keystone initially acquired Freed’s Bakery, Inc. (“Freed’s”), a leading supplier of frozen, thaw and sell cupcakes to the in-store bakery channel, in 2001 in partnership with the management team and the Streeter family of Manchester, NH. In 2006, the KBH bakery platform expanded with the acquisition of Granny’s Kitchens, Ltd. (“Granny’s”), a leading supplier of both frozen pre-fried and frozen, thaw and sell donuts to the in-store bakery and foodservice channels based in Frankfort, NY. KBH then acquired Heartland Baking (“Heartland”), a manufacturer of frozen, thaw and sell cookies based in Du Quoin, IL, to round out the KBH platform in 2009.
Keystone Bakeries was advised by investment banking firm William Blair & Company and law firm Kirkland & Ellis LLP.
George Weston Limited is a Canadian public company founded in 1882 and through its operating subsidiaries constitutes one of North America’s largest food processing and distribution groups. Weston has two reportable operating segments: Weston Foods and Loblaw, which is operated by Loblaw Companies Limited. The Weston Foods operating segment is primarily engaged in the baking industry within North America. Loblaw is Canada’s largest food distributor and a leading provider of general merchandise, drugstore and financial products and services.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Capsa Solutions, LLC (“Capsa”), has acquired the assets of the Mobile Solutions Group of Artromick International, Inc. (“Artromick”) from private equity firm Sterling Partners. Artromick is an industry-leading designer and manufacturer of medication carts, medical carts, and technology carts for the long-term care and acute care industries. Artromick represents the second add-on acquisition Keystone has closed in the preceding two months and was completed in under 40 days from Letter of Intent to closing. The acquisition also represents the fifth acquisition that Keystone has completed since October 2008.
Keystone initially acquired International Retail Services Group (“IRSG”), a leading supplier of storage and material handling products to the retail industry, in 2001. IRSG subsequently acquired MMI Med Carts (“MMI”), a growing manufacturer of medication carts for the long-term care industry, in 2008 to form Capsa. Thus, the acquisition of Artromick represents the second acquisition by Capsa in the past 2 years. “The partnership with Artromick demonstrates Keystone Capital’s long-term and patient investing philosophy as evidenced by our continued investment in the Capsa platform,” said Scott Gwilliam, Managing Director, Keystone Capital, Inc.
Terms of the transaction were not disclosed. Senior debt financing was provided by The Private Bank and Fifth Third Bank. Mezzanine financing was provided by Midwest Mezzanine Funds.
Capsa remains committed to future acquisitions in the durable healthcare products and equipment industry. However, in order to diversify its end market base, Capsa is also interested in other opportunities to acquire industry-leading suppliers of mobility solutions, material handling solutions, and storage solutions serving alternate end markets, including light manufacturing and assembly.
Capsa Solutions, LLC is a leading supplier of carts, storage, shelving, transport and processing solutions for the healthcare, retail, and light manufacturing industries. Capsa Solutions will be comprised of three lines of business, which include IRSG, MMI Med Carts, and Artromick. IRSG, with operations in Itasca, IL, is the market leader in specialized storage and handling solutions sold into the retail, healthcare and light industrial markets. MMI Med Carts, with operations in Los Angeles, CA, is a leading supplier of medication carts for the long-term care industry. Artromick International, with operations in Columbus, OH, is a leading designer and manufacturer of medication carts, medical carts, and technology carts for the long-term care and acute care industries. For more information on Capsa Solutions, please see www.capsasolutions.com.
Sterling Partners is a leading private equity firm with over 25 years of experience partnering with entrepreneurs to build market-leading businesses and generate superior returns. With approximately $4 billion of assets under management, Sterling invests growth capital in industries with positive, long-term trends and provides ongoing support to management through a dedicated team of industry veterans, operators, strategy experts and human capital professionals. Sterling Partners is a leader in education, healthcare and business services and is co-headquartered in Chicago and Baltimore, with additional offices in Mexico City and Delhi. For more information, please visit www.sterlingpartners.com.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Keystone Bakery Holdings, LLC (“KBH”), has acquired the assets of Heartland Bakery, LLC (“Heartland”). Heartland is a manufacturer of thaw and serve cookies for the in-store bakery, foodservice, and convenience store markets. Heartland joins Freed’s Bakery (“Freed’s”) and Granny’s Kitchens (“Granny’s”) in the KBH family of leading specialty baked goods manufacturers.
The acquisition of Heartland represents the third acquisition by Keystone Bakery Holdings in the bakery industry. Keystone initially acquired Freed’s, a leading supplier of cupcakes to the in-store bakery channel, in 2001 and acquired Granny’s, a leading supplier of donuts to similar channels, in 2006. “The partnership with Heartland demonstrates Keystone Capital’s long-term and patient investing philosophy as evidenced by our continued investment in our bakery platform,” said Scott Gwilliam, Managing Director, Keystone Capital, Inc.
Located in Du Quoin, Illinois, Heartland was founded in 2006 by Steven Scaff and James Mitro. Heartland is recognized for its innovative and high quality products, superior customer service and breadth of seasonal and everyday cookie products. The partnership with KBH will allow Heartland to grow through expanded sales channel reach and operational synergies. “We have a unique opportunity to capitalize on the growth and reputation of both companies by expanding the broad portfolio of products we can provide our customers,” noted Kevin McDonough, President and Chief Executive Officer of Keystone Bakery Holdings.
KBH remains committed to future acquisitions in the wholesale bakery industry, and is currently targeting segments such as muffins, fully finished cakes, and laminated products (danishes, croissants, and pastries). Please contact any member of the Keystone acquisitions team below regarding any acquisition opportunities in the wholesale bakery industry.
Keystone Bakery Holdings, LLC is a leading supplier of sweet baked goods to the in-store bakery, foodservice, and convenience store channels. The operating subsidiaries of Keystone Bakery Holdings include Freed’s Bakery, Granny’s Kitchens, and Heartland Bakery Company. Freed’s is the leading supplier of cupcakes for the in-store bakery channel based in Manchester, New Hampshire. Granny’s Kitchens is the leading supplier of donuts to the in-store bakery, foodservice, and convenience store channels based in Frankfort, New York. Heartland Bakery Company is a specialty supplier of seasonal and everyday cookies for the in-store bakery channel based in Du Quoin, Illinois.
Keystone Capital, Inc. (“Keystone”) is pleased to welcome Chaoran Jin to the firm as a Vice President. An experienced operations professional in a variety of roles, Chaoran will be an integral part of supporting the management teams of Keystone’s family of companies with operational, strategic, and other initiatives.
Prior to joining Keystone, Chaoran was with Owens Corning as Site Leader and General Manager of two large manufacturing facilities in Chicago. Chaoran’s previous experience also includes broad-based consulting experience at McKinsey & Company in Chicago, the mergers & acquisitions department of Citigroup in Hong Kong, and in product development at Motorola’s mobile division. She holds a Masters of Business Administration from the University of Chicago, a M.S. in Electrical Engineering from the University of Illinois, and a B.S. from Tsinghua University.
Keystone Capital, Inc. (“Keystone”) is pleased to welcome Jason Van Zant to the firm as an Associate. Jason’s primary focus will be in Keystone’s acquisition and business development group, with responsibility for identification, sourcing, and execution of new acquisition and investment opportunities for Keystone and its partner companies.
Prior to joining Keystone, Jason was an investment banker with Lincoln International LLC in Chicago where his primary areas of focus were in executing sell-side and buy-side M&A transactions in the consumer product, food, and manufacturing industries. He holds a BBA from the University of Iowa.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has acquired Rocore Holdings, Inc. (“Rocore”), a leading designer and manufacturer of heat exchangers and related equipment used to cool air, water, or oil for a variety of applications.
The Rocore acquisition represents the second acquisition for Keystone Capital during 2008, and was completed during a time when the broader financial markets are experiencing significant turmoil. “The acquisition of Rocore demonstrates Keystone Capital’s ability to close complex transactions with a high degree of certainty and speed to closing – especially given the broader economic and financial market environment,” said Scott Gwilliam, Managing Director of Keystone Capital.
Rocore’s products are sold to original equipment manufacturers and aftermarket users across a diverse range of industries, including heavy duty truck, power generation, industrial, rail, military, bus and construction equipment. The Company’s products consist primarily of radiators, heat exchangers, and cooling products made of copper, brass, and aluminum. Rocore is headquartered in Indianapolis, Indiana, with facilities in Franklin, WI, Paducah, KY, Burkesville, KY and Knoxville, TN. Rocore is led by President and CEO Stuart Eden, an industry veteran previously with Serck Services and Honeywell.
Terms of the transaction were not disclosed. Keystone Capital and Rocore are committed to the future growth of the Company, and are interested in discussing opportunities to acquire other manufacturers of heat exchanging products, as well as other niche industrial equipment manufacturers.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has acquired Craft Cast Company (“Craft Cast”), a specialty full-service investment castings manufacturer serving the mining, consumer product, and niche industrial markets.
The Craft Cast acquisition represents the third acquisition for Keystone Capital during 2008, and was completed during a time when the broader financial markets are experiencing significant turmoil. “The acquisition of Craft Cast demonstrates Keystone Capital’s ability to close complex transactions with a high degree of certainty and speed to closing – especially given the broader economic and financial market environment,” said Scott Gwilliam, Managing Director of Keystone Capital.
Craft Cast is a full service provider of castings in ferrous and non-ferrous metals and alloys, including stainless steel, brass, bronze, aluminum, and others. The Company also offers complete engineering support, as well as machining, assembly and finishing services. This full range of capabilities allows Craft Cast to serve as a one-stop shop that produces a finished part for its diverse set of customers. Craft Cast is headquartered in Jackson, Wisconsin and is led by President and CEO Alexander (Al) Scargall, an industry veteran previously with General Motors and Brillion Iron Works.
Terms of the transaction were not disclosed. Keystone Capital and Craft Cast are committed to the future growth of the Company, and are interested in discussing opportunities to acquire other casting manufacturers (investment casting and other), niche machining service providers, and other manufacturers of precision metal components supplied to world class OEMs in any industry.
Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has realized its investment in Judson Technologies, LLC (“Judson”), a leading designer and manufacturer of high performance infrared detectors and accessory products based in Montgomeryville, PA. The acquirer of Judson is Teledyne Technologies Incorporated (NYSE:TDY), through its subsidiary Teledyne Scientific & Imaging, LLC. Terms of the transaction were not disclosed.
Judson manufactures high performance infrared detectors utilizing a wide variety of materials such as Mercury Cadmium Telluride (HgCdTe), Indium Antimonide (InSb), and Indium Gallium Arsenide (InGaAs), as well as tactical dewar and cooler assemblies and other specialized standard products for military, space, industrial and scientific applications. After the closing, the acquired business will operate under the name Teledyne Judson Technologies.
Teledyne Technologies is a leading provider of sophisticated electronic subsystems, instrumentation and communication products, engineered systems, aerospace engines, and energy and power generation systems. Teledyne Technologies’ operations are primarily located in the United States, the United Kingdom and Mexico.
As it should be, Keystone expects their portfolio companies to run their businesses, yet are willing to step in and assist where they can bring value, whether that involvement relates to assessing strategic opportunities or focused improvement projects. Keystone is a truly unique firm with an investment philosophy tied to true long-term partnerships.