Investment Summary

Strength Capital Partners and Midwest Mezzanine Funds Invest In CALco

On December 20, 2019, private equity firm Strength Capital Partners and mezzanine finance firm Midwest Mezzanine Funds invested in forest products company CALco

Investment Highlights
  • This is Strength Capital Partners’ 1st and Midwest Mezzanine Funds’ 1st transaction in the Forest Products sector.
  • This is Strength Capital Partners’ 15th and Midwest Mezzanine Funds’ 72nd transaction in the United States.
  • This is Strength Capital Partners’ 1st and Midwest Mezzanine Funds’ 8th transaction in Illinois.
Investment Fate
  • CALco was sold to a strategic buyer in 2022.

Investment Summary

Date 2019-12-20
Target CALco
Sector Forest Products
Investor(s) Strength Capital Partners
Midwest Mezzanine Funds
Deal Type Growth Capital

Target

CALco

Richmond, Illinois, United States
CALco is a vertically integrated, full-service wooden pallet manufacturer selling both new and recycled pallets to a diverse customer base throughout the Midwest. It operations include a captive hardwood sawmill and landscape mulching capabilities to monetize scrap and unusable pallets. CALco was founded in 2006 and is based in Richmond, Illinois.

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Investor(S) 2

Investor

Strength Capital Partners

Birmingham, Michigan, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 500M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Strength Capital Partners (SCP) is a private equity firm that specializes in acquiring or providing late stage growth capital to Midwest US based companies. Areas of interest include the manufacturing, distribution, industrial, financial services, infrastructure, and consumer products sectors. The Firm takes a hands-on investment approach, looking to use firm resources and expertise to improve operational performance. SCP will not invest in high technology or internet businesses. Strength Capital Partners has offices in Birmingham, Michigan and Cincinnati, Ohio.


DEAL STATS #
Overall 15 of 22
Sector: Forest Products M&A 1 of 1
Type: Growth Capital M&A Deals 4 of 9
State: Illinois M&A 1 of 1
Country: United States M&A 15 of 22
Year: 2019 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-01 ARCH Global

Bloomfield Hills, Michigan, United States

ARCH Global is a manufacturer of consumable cutting tools, medical instruments and implants and precision components. ARCH’s products serve a diverse set of large and growing end markets, including general industrial, medical, transportation and aerospace and defense. ARCH Global was formed in 2011 and is based in Livonia, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-31 RW America

Henderson, Colorado, United States

RW America is a distributor of specialty building supplies to customers in the Mountain West region of the United States. The Company’s product offering includes deck/porch products, weatherization products, stair parts, hearth, specialty hardware, and general building products. RW America was founded in 1965 and is based in Henderson, Colorado.

Buy -
Investor

Midwest Mezzanine Funds

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1992
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Midwest Mezzanine Funds (MMF) is a provider of junior capital to lower middle-market, US and Canadian companies. MMF looks to invest $4 to $15 million to support buyouts, acquisition financings, recapitalizations, and growth capital needs. Prospective companies generally have consistent profits ($3 million of EBITDA), low capital intensity, and sustainable competitive advantages. Broad areas of interest include manufacturing, value-added distribution, and services. MMF will not invest in high technology, energy, or real estate. Midwest Mezzanine was formed in 1992 and has offices in Chicago and Monroe, Michigan.


DEAL STATS #
Overall 72 of 81
Sector: Forest Products M&A 1 of 1
Type: Growth Capital M&A Deals 12 of 14
State: Illinois M&A 8 of 8
Country: United States M&A 72 of 81
Year: 2019 M&A 9 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-12-01 Pan-Am Dental

Savannah, Georgia, United States

Pan-Am Dental is a full-service, outsourced dental laboratory that manufactures and distributes custom dental products such as crowns, implants, and sleep appliances. Pan-Am Dental was founded in 2007 and is based in Savannah, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-15 Skyline

St. Paul, Minnesota, United States

Skyline is a designer, manufacturer and marketer of trade show displays and exhibits for a wide variety of end-users. Skyline was founded in 1980 and is based in St. Paul, Minnesota.

Sell -