M&A Deal Summary

Taglich Private Equity, Mill Road Capital and Southfield Mezzanine Capital Acquire Lignetics

On March 18, 2014, private equity firm Taglich Private Equity, private equity firm Mill Road Capital and mezzanine finance firm Southfield Mezzanine Capital acquired forest products company Lignetics

Acquisition Highlights
  • This is Taglich Private Equity’s 2nd, Mill Road Capital’s 1st and Southfield Mezzanine Capital’s 1st transaction in the Forest Products sector.
  • This is Taglich Private Equity’s 20th, Mill Road Capital’s 5th and Southfield Mezzanine Capital’s 2nd transaction in the United States.
  • This is Taglich Private Equity’s 1st, Mill Road Capital’s 1st and Southfield Mezzanine Capital’s 1st transaction in Colorado.
Investment Fate
  • Lignetics was sold to a consortium of financial buyers in 2021.

M&A Deal Summary

Date 2014-03-18
Target Lignetics
Sector Forest Products
Buyer(s) Taglich Private Equity
Mill Road Capital
Southfield Mezzanine Capital
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) The Spartan Group LLC (Financial)

Target

Lignetics

Broomfield, Colorado, United States
website
Lignetics is a residential wood pellet manufacturing company in the U.S. The company’s innovative eco-friendly offering includes premium wood pellets for super-efficient home heating, barbecue pellets that naturally seal in perfect wood-fired flavor, and a superior all-natural high-performance cat litter. The company delivers these innovative all-natural products through national retail partners and directly to consumers via the only national network of wood pellet manufacturing plants spread across the U.S. and Canada with 22 different plant locations. Lignetics was founded in 1983 and is based in Broomfield, Colorado.

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Buyer(S) 3

Buyer

Taglich Private Equity

New York, New York, United States

website


Category Private Equity Firm
Founded 2001
Size Small
Type Sector Agnostic
DESCRIPTION

Taglich Private Equity is a private equity firm focused on investing in US-based, lower middle market manufacturing, business service, and consumer product companies. The Firm prefers businesses with strong growth prospects and leading market positions. Taglich looks to invest $3 to $20 million and will consider funding a variety of investment situations - including management buyouts, recapitalizations, secondary buyouts, ownership transitions, divestitures, and growth capital financings. Taglich Private Equity was formed in 2001 and is based in New York City.


DEAL STATS #
Overall 20 of 23
Sector (Forest Products) 2 of 2
Type (Buyout (LBO, MBO, MBI)) 18 of 19
State (Colorado) 1 of 1
Country (United States) 20 of 23
Year (2014) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-01 Basin Environmental Service Technologies

Lovington, New Mexico, United States

Basin Environmental Service Technologies LLC is an oilfield soil remediation and cleanup services for oil development and production companies in the Permian Basin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-29 BGSF

Plano, Texas, United States

BGSF provides staffing services to a variety of industries through its various divisions. BG Staffing is primarily a professional temporary staffing platform that has integrated several regional and national brands. BGSF was founded in 2007 and is founded in Plano, Texas.

Sell -
Buyer

Mill Road Capital

Greenwich, Connecticut, United States

website


Category Private Equity Firm
Founded 2004
PE ASSETS 250M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Mill Road Capital is a private investment firm focused on partnering with publicly traded micro-cap companies in the US and Canada. The Firm pursues a variety of strategies including open market share purchases, block trades, acquisition financing, growth financing, mezzanine financing, as well as sponsoring take privates. Sectors of interest include retail, manufacturing, business services, and consumer products. Mill Road was formed in 2004 by former Blackstone professionals. The Firm is based in Greenwich, Connecticut.


DEAL STATS #
Overall 7 of 13
Sector (Forest Products) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 2 of 3
State (Colorado) 1 of 2
Country (United States) 5 of 10
Year (2014) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-06-01 Destination Maternity

Moorestown, New Jersey, United States

Destination Maternity Corp. is a designer and retailer of maternity apparel. Destination Maternity Corp. operates 2,008 retail locations in the United States and Canada, including 625 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-05 RG Barry Bands

Pickerington, Ohio, United States

RG Barry Bands is a provider of accessories brands and fashionable, solution-oriented products that make life better. RG Barry Brands include Dearfoams slippers, baggallini handbags, totes, travel accessories, and Foot Petals premium insoles and comfort products. RG Barry Bands was founded in 1947 and is based in Pickerington, Ohio.

Buy $215M
DESCRIPTION

Southfield Mezzanine Capital is a mezzanine finance provider that looks to invest $5 to $20 million to support profitable ($3+ million of EBITDA) manufacturing, business services, and distribution companies across the US. Prospective transaction situation include acquisition financings, growth capital financings, and recapitalizations. Southfield Mezzanine Capital was formed in 2013 and is headquartered in Greenwich, Connecticut.


DEAL STATS #
Overall 2 of 14
Sector (Forest Products) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 2 of 6
State (Colorado) 1 of 1
Country (United States) 2 of 14
Year (2014) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-01-01 CSAT Solutions

Houston, Texas, United States

CSAT Solutions is a provider of fully-integrated electronic and digital device diagnostics and repair solutions. CSAT serves diverse end markets such as consumer electronics, industrial equipment and components, and medical devices and equipment. CSAT Solutions wounded in 1987 and headquartered in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-01 Innovative Labs

Springville, Utah, United States

Innovative Labs is a developer, formulator, and provider of single serve and multi-dose ingestible health and wellness products for brands and direct sales companies. IFP provides highly differentiated formulating, blending, filling, distribution, and other critical services for small-format nutritional supplements, food items, household products, and other consumer packaged goods. Innovative Labs was founded in 2006 and is based in Springville, Utah.

Buy -