M&A Deal Summary

ShoreView Industries and Northstar Capital Acquire Monroe Engineering

On November 1, 2017, private equity firm ShoreView Industries and mezzanine finance firm Northstar Capital acquired distribution company Monroe Engineering from Ellipse Capital, Svoboda Capital Partners and Greyrock Capital Group

Acquisition Highlights
  • This is ShoreView Industries’ 3rd and Northstar Capital’s 7th transaction in the Distribution sector.
  • This is ShoreView Industries’ 29th and Northstar Capital’s 79th transaction in the United States.
  • This is ShoreView Industries’ 1st and Northstar Capital’s 3rd transaction in Michigan.
Investment Fate
  • Monroe Engineering was sold to a financial buyer in 2021.
  • Monroe Engineering was sold to a consortium of financial buyers in 2021.

M&A Deal Summary

Date 2017-11-01
Target Monroe Engineering
Sector Distribution
Buyer(s) ShoreView Industries
Northstar Capital
Sellers(s) Ellipse Capital
Svoboda Capital Partners
Greyrock Capital Group
Deal Type Secondary Buyout

Target

Monroe Engineering

Rochester Hills, Michigan, United States
website
Monroe Engineering is a distributor of a broad portfolio of custom and standard hardware and component products for original equipment manufacturers, as well as maintenance, repair and operations applications. Monroe Engineering serves customers across a wide range of end markets including aerospace, defense, medical, transportation, consumer goods, building products, and other diversified industrial markets. Monroe Engineering was established in 1968 and is headquartered in Rochester Hills, Michigan.

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Buyer(S) 2

Buyer
DESCRIPTION

ShoreView Industries is a middle-market private investment principally focused on partnering with family or entrepreneurial-owned companies. ShoreView will consider a variety of investment situations, including buyouts, leveraged recapitalizations, minority investments, and industry consolidations. Areas of interest include engineered products, distribution, industrial services, business services, and niche consumer products. ShoreView industries was established in 2002 and is headquartered in Minneapolis, Minnesota.


DEAL STATS #
Overall 30 of 43
Sector (Distribution) 3 of 5
Type (Secondary Buyout) 6 of 7
State (Michigan) 1 of 1
Country (United States) 29 of 42
Year (2017) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-30 Winzer

Plano, Texas, United States

Winzer is a distributor of fasteners and consumable maintenance supplies. The company serves customers engaged in maintenance, repair, and operations activities across a diverse range of end markets including industrial, automotive, institutional, and government. Winzer has a unique business model, whereby it markets and sells its products through a network of nearly 300 independent, route-based franchisees. Winzer was established in 1978 and is based in Plano, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-04-03 WWP Beauty

Florham Park, New York, United States

WWP Beauty is a provider of packaging solutions to the cosmetic industry.WWP Beauty also specializes in custom engineered solutions for a variety of unique product applications. WWP Beauty's extensive product line includes a wide selection of innovative tube packaging options, jars, compacts and lotion bottles. WWP Beauty provides everything from plastic mass-market containers to sophisticated metal cases for lipstick, lip gloss, mascara, and eyeliner, while offering competitive prices and dependable, high quality service.

Sell -
Buyer

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor

website


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 83 of 107
Sector (Distribution) 7 of 7
Type (Secondary Buyout) 15 of 19
State (Michigan) 3 of 3
Country (United States) 79 of 102
Year (2017) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-04 St. Croix Hospice

Oakdale, Minnesota, United States

St. Croix Hospice is a provider of hospice services across the midwestern United States. Founded in 2008 and based in Oakdale, Minnesota, the Company delivers both hospice and a broader network of concurrent comfort and support services that are tailored to patients' and their family's individual needs and circumstances.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-12-21 Civix

Metairie, Louisiana, United States

Civix provides professional services and software products to public sector clients. Software suites include business registration/filings, voter registration, campaign finance, nuclear water chemistry management, and airport management. Civix was founded in 1979 and is based in Metairie, Louisiana.

Buy -

Seller(S) 3

SELLER

Ellipse Capital

Chicago, Illinois, United States

website


Category Private Equity Firm
Founded 2008
Size Small
Type Sector Agnostic
DESCRIPTION

Ellipse Capital is a private investment group focused on partnering with management teams to acquire distribution businesses. Ellipse looks to identify companies where the Firm can work with management to expand geographic reach, product/service offerings, and customers. For new company investments, Ellipse seeks to invest $10 to $50 million for controlling positions in businesses valued up to $100 million. Ellipse Capital was formed in 2008 and is based in Chicago.


DEAL STATS #
Overall 7 of 8
Sector (Distribution) 6 of 6
Type (Secondary Buyout) 2 of 2
State (Michigan) 1 of 1
Country (United States) 7 of 8
Year (2017) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-24 GPA Specialty Substrate Solutions

McCook, Illinois, United States

GPA is a marketer and value-added distributor of specialty printable substrates in North America. The company sells specialty labels, paper, substrates, and films and provides technical knowledge to the printing and graphic arts industry across the country.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-24 Heritage Sportswear

Hebron, Ohio, United States

Heritage Sportswear is a distributor of imprintable sportswear, apparel, headwear, and accessories to the promotional products market. Heritage Sportswear was founded in 1982 and is based in Hebron, Ohio.

Sell -
SELLER

Svoboda Capital Partners

Chicago, Illinois, United States

Investor Investor Investor

website


Category Private Equity Firm
Founded 1998
PE ASSETS 400M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Svoboda Capital Partners is a private equity firm that seeks buyout, recapitalization, and growth capital investments in mid-sized companies with leading market positions, strong customer relationships, and high margins. Svoboda generally looks to invest up to $25 million in businesses generating sales of $10 to $100 million and EBITDA of $3 to $15 million. Sectors of interest include value-added distribution, business services, and consumer products. Svoboda Capital Partners was formed in 1998 and is based in Chicago, Illinois.


DEAL STATS #
Overall 26 of 33
Sector (Distribution) 9 of 11
Type (Secondary Buyout) 10 of 11
State (Michigan) 1 of 1
Country (United States) 26 of 33
Year (2017) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-02 Databank IMX

Beltsville, Maryland, United States

Databank IMX LLC is a provider of outsourced imaging and information solutions, including document scanning, indexing, physical and electronic document storage, and software to manage information. The company provides these services to customers in the government, higher education, healthcare, energy and general industrial markets.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-22 Blake & Pendleton

Macon, Georgia, United States

Blake & Pendleton is a value-added distributor of air compressors, compressed air automation systems, pumping equipment, and flow control products in the Southeastern United States. Blake & Pendleton was founded in 1971 and is based in Macon, Georgia.

Sell -
SELLER

Greyrock Capital Group

Walnut Creek, California, United States

Investor Investor Investor Investor Investor

website


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 350M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Greyrock Capital Group provides mezzanine debt and equity capital to finance buyouts, recapitalizations and growth needs of middle market companies. Greyrock looks to invest between $8 and $40 million of equity and/or junior capital in companies with minimum revenues of $10 million and at least $2 million of EBITDA. Greyrock prefers companies in defensible markets with low cost structures. Greyrock Capital was formed in 2002 and has offices in San Francisco, California; Chicago, Illinois; and Westport, Connecticut.


DEAL STATS #
Overall 32 of 45
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 12 of 18
State (Michigan) 1 of 1
Country (United States) 32 of 45
Year (2017) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-09 World Dryer

Berkeley, Illinois, United States

World Dryer Corp. is a manufacturer and worldwide distributor of warm air hand dryers for commercial bathrooms. World Dryer was founded in 1948 and is based in Berkeley, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-16 GenAlpha Technologies

Brookfield, Wisconsin, United States

GenAlpha Technologies offers a comprehensive suite of software and services with a complete aftermarket solution for original equipment manufacturers. The Company’s GenSuite software provides its customers with a unique platform including eCommerce, data conversion, eCatalogs with 2D and 3D interactive technology and data analytics. GenAlpha Technologies was founded in 2011 and is based in Brookfield, Wisconsin.

Buy -