Recapitalization • Business Services

Convergent Capital Partners, Southfield Mezzanine Capital and MB Financial Acquire Innovative Labs

On April 1, 2015, growth capital firm Convergent Capital Partners, mezzanine finance firm Southfield Mezzanine Capital and MB Financial acquired business services company Innovative Labs

Acquisition Context
  • This is Convergent Capital Partners’ 11th, Southfield Mezzanine Capital’s 2nd and MB Financial’s 1st transaction in the Business Services sector.
  • This is Convergent Capital Partners’ 55th, Southfield Mezzanine Capital’s 3rd and MB Financial’s 12th transaction in the United States.
  • This is Convergent Capital Partners’ 1st, Southfield Mezzanine Capital’s 1st and MB Financial’s 1st transaction in Utah.
Investment Fate
  • Innovative Labs was recapitalized in 2020.

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M&A Deal Summary

Date April 1, 2015
Target Innovative Labs
Sector Business Services
Buyer(s) Convergent Capital Partners
Southfield Mezzanine Capital
MB Financial
Deal Type Recapitalization

Target Company

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. The company 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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Buyers Overview 3

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 Context for Buyer #
Overall 55 of 62
Sector: Business Services 11 of 11
Type: Recapitalization 10 of 10
State: Utah 1 of 1
Country: United States 55 of 62
Year: 2015 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-12-01 Poblocki

Milwaukee, Wisconsin, United States

Poblocki is a manufacturer of exterior and interior architectural signage, specialty displays and custom fabricated projects. Poblocki was founded in 1932 and is based in Milwaukee, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-01 Nutiva

Richmond, California, United States

Nutiva is a manufacturer and distributor of organic superfoods with products including hemp, coconut, chia, and red palm. Nutiva was founded in 1999 and is based in Richmond, California.

Buy -
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 Context for Buyer #
Overall 3 of 16
Sector: Business Services 2 of 5
Type: Recapitalization 1 of 4
State: Utah 1 of 3
Country: United States 3 of 16
Year: 2015 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-18 Lignetics

Broomfield, Colorado, United States

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.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-27 Elite Medical Staffing

Lake Mary, Florida, United States

Elite Medical Staffing is a provider of temporary staffing of specialty nurses to institutions, such as hospitals, rehab centers and clinics throughout the United States, as well as private duty. Elite Medical Staffing is based in Lake Mary, Florida.

Buy -
Buyer

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 Context for Buyer #
Overall 12 of 14
Sector: Business Services 1 of 1
Type: Recapitalization 1 of 1
State: Utah 1 of 1
Country: United States 12 of 14
Year: 2015 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-30 Cole Taylor Bank

Chicago, Illinois, United States

Cole Taylor Bank, Inc., a commercial bank operating in the Chicago metropolitan area. Headquartered in Rosemont, IL, Cole Taylor Bank operates nine banking centers throughout Chicago and has over $4 billion in assets under management. The bank was founded in 1929 by members of the Taylor family and has served the Chicago metropolitan area for over 75 years. Cole Taylor’s mission is to be a premier bank for Chicago area businesses by utilizing a relationship oriented customer approach.

Buy $640M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-11-23 American Chartered Bancorp

Schaumburg, Illinois, United States

American Chartered Bank is the Company's wholly owned banking subsidiary. American Chartered is a business bank with 15 offices in metropolitan Chicago and the surrounding suburbs.

Buy $449M