M&A Deal Summary

Blue Sea Capital, Twin Bridge Capital Partners and Apogem Capital Acquire Innovative Labs

On January 23, 2020, private equity firm Blue Sea Capital, private equity firm Twin Bridge Capital Partners and asset manager Apogem Capital acquired business services company Innovative Labs from Southfield Mezzanine Capital, Convergent Capital Partners and MB Financial

Acquisition Highlights
  • This is Blue Sea Capital’s 1st, Twin Bridge Capital Partners’ 1st and Apogem Capital’s 3rd transaction in the Business Services sector.
  • This is Blue Sea Capital’s 10th, Twin Bridge Capital Partners’ 2nd and Apogem Capital’s 63rd transaction in the United States.
  • This is Blue Sea Capital’s 1st, Twin Bridge Capital Partners’ 1st and Apogem Capital’s 1st transaction in Utah.

M&A Deal Summary

Date 2020-01-23
Target Innovative Labs
Sector Business Services
Buyer(s) Blue Sea Capital
Twin Bridge Capital Partners
Apogem Capital
Sellers(s) Southfield Mezzanine Capital
Convergent Capital Partners
MB Financial
Deal Type Recapitalization

Target

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.

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Buyer(S) 3

Buyer

Blue Sea Capital

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2013
PE ASSETS 327M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Blue Sea Capital is a private equity firm focused on majority investments in middle-market aerospace, defense, healthcare, and industrial companies. Blue Sea will consider opportunities throughout North America with a focus on businesses with differentiated products/services. The Firm can commit up to $150 million in transactions valued up to $300 million. Blue Sea Capital was formed in 2013 and is based in West Palm Beach, Florida.


DEAL STATS #
Overall 10 of 18
Sector (Business Services) 1 of 2
Type (Recapitalization) 1 of 1
State (Utah) 1 of 1
Country (United States) 10 of 18
Year (2020) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-07 Apex Physics Partners

Towson, Maryland, United States

Apex Physics Partners is a diagnostic medical physics services platform that provides partner medical physics practices including Krueger-Gilbert Health Physics with business support services including client services, accounting/finance, sales, marketing, human resources, recruiting, information technology, data analytics, vendor management, purchasing, legal and insurance. Apex Physics Partners is based in Towson, Maryland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-03-02 NSi Industries

Huntersville, North Carolina, United States

NSi Industries is a provider of a wide variety of electrical connectors including insulated connectors and mechanical, digital time controls, time switches, wire management products, and related electrical components for construction, maintenance, and repair applications. NSi Industries was established in 1975 and is based in Huntersville, North Carolina.

Sell -
Buyer
DESCRIPTION

Twin Bridge Capital Partners, LLC is a private equity firm focused on small and middle-market buyout funds and co-investments. The firm seeks to invest in leveraged buyout funds and non-control equity co-investments across multiple industries. Twin Bridge has raised more than $2.5 billion in the capital since its founding in 2005. The Firm looks for opportunities valued from $100 to $1000 million. Twin Bridge Capital Partners was founded in 2005 and is based in Chicago, Illinois.


DEAL STATS #
Overall 2 of 5
Sector (Business Services) 1 of 3
Type (Recapitalization) 1 of 1
State (Utah) 1 of 1
Country (United States) 2 of 5
Year (2020) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-25 apexanalytix

Greensboro, North Carolina, United States

apexanalytix is a provider of supplier management, audit, recovery, and compliance software, and services. apexanalytix was founded in 1988 and is based in Greensboro, North Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-10-16 Simplicity Group

Summit, New Jersey, United States

Simplicity Group is a financial product distribution firm focused on retirement planning solutions through a combination of annuity, life insurance, and securities products. Simplicity Group was founded in 2008 and is based in Summit, New Jersey.

Buy -
Buyer

Apogem Capital

Chicago, Illinois, United States

Category Asset Manager
Founded 2001
PE ASSETS 39.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Apogem Capital is a diversified alternative investment manager and subsidiary of insurance provider, New York Life. Apogem manages a variety of investment strategies including private equity, private credit, and real assets. Within private equity, the Firm looks to make fund, direct, and secondary investments, as well as acquire GP stakes. Within its direct investing activity, Apogem targets mid-sized companies valued up to $250 million and will consider businesses throughout North America and Europe. Apogem Capital formed as the result of New York Life combining PA Capital, Madison Capital Funding, and Goldpoint Partners into one entity. Apogem Capital is based in New York City.


DEAL STATS #
Overall 63 of 69
Sector (Business Services) 3 of 4
Type (Recapitalization) 9 of 10
State (Utah) 1 of 1
Country (United States) 63 of 69
Year (2020) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-11-12 ASPEQ Heating Group

St. Louis, Mississippi, United States

ASPEQ Heating Group is a provider of custom-configured electric heating and thermal management products to the industrial, commercial, military, marine, and transportation markets. ASPEQ serves a highly diversified customer base and provides over 30 distinct product categories, including immersion and circulation heaters, duct heaters, tubular elements, unit and comfort heaters, and explosion-proof heaters, among others, as well as integrated controls and spare parts. Products are marketed through a multi-channel approach under the longstanding and well-known INDEECO, Heatrex, AccuTherm, and Brasch brands. ASPEQ Heating Group was formed in 2008 and is based in St. Louis, Mississippi.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-11-10 Wytech Industries

Rahway, New Jersey, United States

Wytech Industries is a manufacturer of specialty core wires and related components for the interventional medical markets. Wytech’s customers include the major medical device OEMs and contract manufacturers focused on high-growth therapies in the neurovascular, peripheral vascular, and structural heart-end markets. Wytech Industries was founded in 1975 and headquartered in Rahway, New Jersey.

Buy -

Seller(S) 3

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 3 of 6
Sector (Business Services) 2 of 4
Type (Recapitalization) 1 of 1
State (Utah) 2 of 2
Country (United States) 3 of 6
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-10-10 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.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-02 Hull & Associates

Dublin, Ohio, United States

Hull & Associates is a diversified engineering consulting firm with deep sector expertise in site assessment & remediation, brownfield redevelopment, waste management & beneficial use, water/wastewater, renewable energy, infrastructure design, and other services for commercial and industrial clients, oil & gas companies, public utilities, municipal and government agencies. Hull & Associates was founded in 1980 and is based in Dublin, Ohio.

Buy -
SELLER
DESCRIPTION

Convergent Capital is a private investment firm that provides growth and debenture financing to late-stage growth companies. Convergent prefers to commit $3 to $12 million per transaction in businesses with at least $10 million in revenues. Convergent is a generalist investor and will consider businesses in a wide range of industries. Investment funds are typically used to assist growth, but the firm can also structure investments around buyouts, recapitalizations, consolidations, and add-on acquisitions. Convergent is licensed as a SBIC. Convergent Capital was formed in 1999 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 41 of 42
Sector (Business Services) 9 of 9
Type (Recapitalization) 2 of 2
State (Utah) 1 of 1
Country (United States) 41 of 42
Year (2020) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-01 Clinkenbeard

South Beloit, Illinois, United States

Clinkenbeard & Associates, Inc. offers prototyping and production of complex cast and machined parts for the aerospace, heavy truck, industrial, power generation, and agriculture markets. Clinkenbeard produces part quantities that range from a single unit to low volume production. Clinkenbeard & Associates was founded in 1966 and is based in South Beloit, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-01 Vectair Systems

Memphis, Tennessee, United States

Vectair Systems is a manufacturer and supplier of hygiene products delivering sanitary solutions to customers and facilities worldwide spanning over 120 countries. Vectair Systems was formed in 1988 and is based in Memphis, Tennessee.

Buy -
SELLER

MB Financial

Chicago, Illinois, United States

Category Company
Founded 1911
Sector Financial Services
Employees2,980
Revenue 816M USD (2015)
DESCRIPTION
Entrance to a MB Financial office in Rosemont, Illinois.
Entrance to a MB Financial office in Rosemont, Illinois.

MB Financial, Inc. is the Chicago-based holding company for MB Financial Bank, which has approximately $20 billion in assets and a more than one hundred year history of building deep and lasting relationships with middle-market companies and individuals. MB offers a full range of powerful financial solutions and the expertise and experience of bankers who are focused on their clients’ success. MB Financial was formed in 1911 and is based in Chicago, Illinois.


DEAL STATS #
Overall 1 of 1
Sector (Business Services) 1 of 1
Type (Recapitalization) 1 of 1
State (Utah) 1 of 1
Country (United States) 1 of 1
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-12-31 MSA Holdings

United States

MSA Holdings LLC is a wealth management firm dedicated to meeting the investment needs of individuals, families, foundations, endowments, and institutions.

Buy -