MiBiz Growth Report: March 13, 2023

MiBiz Growth Report: March 13, 2023

M&A 

  • Grand Rapids-based third-party data center maintenance provider Service Express Inc. continues its M&A streak with the acquisition of Massachusetts-based ServIQ, which specializes in data center support with third-party maintenance, managed services and hardware solutions. A provider of data center support for some of the world’s largest brands and Fortune 500 companies, ServIQ had been growing “really rapidly” in recent years, leading the company’s owner to approach Service Express about a sale and scaling up the business. Terms of the deal were undisclosed. New York-based investment banking firm Agile Equity served as the financial advisor to ServIQ. Since 2019, Service Express has been a portfolio company of New York-based private equity firm Harvest Partners LP.
  • Traverse City-based Highstreet Insurance Partners Inc. has acquired Stratton Agency in Pendleton, Oregon. A full-service insurance agency, Stratton has offices in Pendleton, Hermiston, La Grande and The Dalles. One of the insurance industry’s top acquirers and fastest-growing brokers, Highstreet Insurance Partners has closed 144 acquisitions since mid 2018. The Stratton deal was the fourth transaction in 2023 for Highstreet.
  • Petoskey-based Kilwin’s Quality Confections Inc. and Kilwins Chocolates Franchise Inc. was acquired by Los Angeles, Calif.-based private equity firm Levine Leichtman Capital Partners, according to a statement. Kilwins is a franchisor, retailer, manufacturer and distributor of chocolates, ice cream and confectionery products founded in 1947. Robin and Don McCarty, the majority owners of the company since 1979, will maintain an ownership stake in the company going forward. The sale positions Kilwins to capitalize on new growth opportunities, according to a statement. Terms of the deal were not disclosed. Varnum LLP and BDO Capital Advisors LLC advised Kilwins in the transaction, while Levine Leichtman Capital Partners was advised by Honigman LLP and Greenberg Traurig LLP.
  • Grand Rapids-based payroll software firm Dominion Systems Inc. has been acquired by AAB, a private equity-backed business services company in Scotland. The two companies have partnered for the past five years, with Dominion supporting AAB’s global payroll growth plans. Dominion will now operate as AAB Payroll Inc., effectively immediately, and will be led by Dominion President Chris Andree. Terms of the deal were undisclosed. Dominion Systems offers fully integrated, cloud-based software with customizable payroll and human resources options. It supports a range of industries, including agriculture, car dealerships, health care and food and beverage. A provider of critical business services such as accounting, auditing and tax support through tech-enabled platforms, AAB has experienced rapid growth since securing an investment from London, U.K.-based August Equity in October 2021. Dominion was AAB’s seventh acquisition in the past 16 months and its first in the U.S..
  • Marquette-based Easy Ice LLC, a private equity-backed commercial ice machine rental and servicing company, has acquired the ice machine division of family-owned San Diego Ice Co., according to a statement. The deal complements Easy Ice’s existing footprint in southern California following the acquisition of Cube Aire last year. Terms of the deal were not disclosed.  Easy Ice is a portfolio company of Los Angeles, Calif.-based private equity firm Freeman Spogli & Co.
  • Traverse City-based The Great Lakes Potato Chip Company LLC, a maker of snacks sold through foodservice distributors, grocery and club stores and direct to consumers, has been acquired by a partnership of LaSalle Capital and Lightspring Capital I LP, a pair of Chicago-based private equity firms. Co-founder Chris Girrbach is staying on with the company as CEO. Terms of the deal were not disclosed. Varnum LLP served as legal adviser to Great Lakes Potato Chips in the deal, while Birmingham-based Greenwich Capital Group LLC served as the company’s financial adviser. 
  • Traverse City-based Clark Manufacturing Co., a metal machining company serving the oil and gas, fluid and compression, and medical device industries, has been acquired by Century LLC, a Traverse City-based vertically integrated metal manufacturing and thermal processing company. The acquisition positions Century as “a more resilient, capable and diversified company,” according to a statement. Since June 2021, Century has been owned by the Dauch family, which has ties to Detroit-based American Axle & Manufacturing Inc. Terms of the deal were not disclosed. 

 

Venture capital

  • Grand Rapids-based medical device company Shoulder Innovations Inc. has raised $42 million from investors that will go to accelerate commercialization and distribution. Netherlands-based Gilde Healthcare, which has an office in Cambridge, Mass., led the Series D financing round for Shoulder Innovations. Gilde was joined by returning investors US Venture Partners and Lightstone Ventures, both based in Menlo Park, Calif., and Grand Rapids-based Cultivate(MD) Accelerator Capital. The round also featured new investors: San Francisco-based Gilmartin Capital and Aperture Venture Partners from New York City. Shoulder Innovations developed components for an innovative orthopedic shoulder implant known as the InSet system that simplifies the surgical technique, leading to reduced complications and increased implant longevity.

 

Financial services

  • Directors at Grand Rapids-based Adventure Credit Union appointed Amanda Garabedian as president and CEO. Garabedian has served as interim CEO since September and worked closely with the credit union’s board and an executive search firm to complete the recruitment process. Adventure Credit Union has seven offices in the Grand Rapids and Lansing areas. The credit union at the end of 2022 had 32,983 members with $437.1 million in total assets, according to a quarterly financial statement to the National Credit Union Administration.

 

Health biz

  • Corewell Health opened a new 24-room intensive care unit on the eighth floor of the Fred and Lena Meijer Heart Center in Grand Rapids following a 15-month, $17.5 million renovation. The unit, located in space formerly used for offices and meeting rooms, expanded capacity at the Meijer Heart Center from 72 to 96 beds for treating a range of medical conditions that include acute respiratory failure, post cardiac arrest, complications from bone marrow transplantation, and diabetic ketoacidosis. Corewell Health treats more than 2,000 ICU patients annually at the Meijer Heart Center. The health system will next expand the Meijer Heart Center’s cardiothoracic critical care unit on the fifth floor from 22 beds to 36 beds in a project scheduled to begin this spring.