M&A Deal Summary

Gryphon Investors Acquires Vessco

On November 16, 2020, private equity firm Gryphon Investors acquired distribution company Vessco from O2 Investment Partners and Midwest Mezzanine Funds

Acquisition Highlights
  • This is Gryphon Investors’ 1st transaction in the Distribution sector.
  • This is Gryphon Investors’ 55th transaction in the United States.
  • This is Gryphon Investors’ 3rd transaction in Minnesota.

M&A Deal Summary

Date 2020-11-16
Target Vessco
Sector Distribution
Buyer(s) Gryphon Investors
Sellers(s) O2 Investment Partners
Midwest Mezzanine Funds
Deal Type Secondary Buyout

Target

Vessco

Chanhassen, Minnesota, United States
Vessco is a wastewater equipment distributor and value-added service provider in its core territory of the Upper Midwest. Vessco offers its customers an exceptional breadth of products and services with its line card of valued vendors. Vessco provides its products and services in over 18 states. Vessco is based in Chanhassen, Minnesota.

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Buyer(S) 1

Buyer

Gryphon Investors

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 9.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Gryphon Investors is a private equity firm focused on making $50 to $300 million of equity or equity-linked investments in middle-market companies. Target transaction situations include traditional buyouts, leveraged build-ups, and growth financings. Gryphon will consider both control and shared-control positions. Sectors of interest include business services, consumer, retail, automotive, chemicals, general manufacturing, healthcare, and hotels. Gryphon Investors was formed in 1997 and is based in San Francisco, California.


DEAL STATS #
Overall 55 of 75
Sector (Distribution) 1 of 3
Type (Secondary Buyout) 16 of 25
State (Minnesota) 3 of 3
Country (United States) 55 of 74
Year (2020) 5 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-21 Techmer PM

Clinton, Tennessee, United States

Techmer PM is a materials design company that specializes in modifying and fine-tuning the properties of technical polymers. The company thrives on partnering and collaborating with plastics processors, fabricators, designers, specifiers, and brand owners. It operates seven North American plants and has extensive expertise in virtually every plastic- and fiber-related process, from additive manufacturing and blown film to nonwovens, injection molding, and sheet extrusion. Techmer PM was founded in 1981 and is based in Clinton, Tennessee.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-11-19 Kano Laboratories

Nashville, Tennessee, United States

Kano Laboratories is a producer of branded penetrating oils and lubricants in the industrial maintenance, repair, and operations (“MRO”) and consumer markets. Kano Laboratories was founded in 1939 and is based in Nashville, Tennessee.

Buy -

Seller(S) 2

SELLER

O2 Investment Partners

Bloomfield Hills, Michigan, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2011
Size Small
Type Sector Agnostic
DESCRIPTION

O2 Investment Partners is a Midwest US-based private equity group that acquires majority interests in small and mid-sized businesses operating in traditional industries, including manufacturing, niche distribution, select service and technology businesses. Target companies typically have stable cash flows, sustainable and defensible business models, and growth potential. O2 Investment Partners was formed in the year 2010 and is based in Bloomfield Hills, Michigan.


DEAL STATS #
Overall 6 of 10
Sector (Distribution) 1 of 1
Type (Secondary Buyout) 2 of 4
State (Minnesota) 1 of 1
Country (United States) 5 of 9
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-03-01 SIB Fixed Cost Reduction

Charleston, South Carolina, United States

SIB Fixed Cost Reduction is a spend-management consulting firm that offers shared-savings solutions plus robust vendor-management and utility service offerings. SIB Fixed Cost Reduction was founded in 2008 and is based in Charleston, South Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-12 Flip Electronics

Alpharetta, Georgia, United States

Flip Electronics is an authorized distributor for major suppliers, Flip assists clients in the sourcing, pricing, and delivery of all their component needs. These services help avoid costly shutdowns and purchasing from the grey market. Flip Electronics was founded in 2015 and is based in Alpharetta, Georgia.

Buy -
SELLER

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 44 of 56
Sector (Distribution) 4 of 5
Type (Secondary Buyout) 22 of 25
State (Minnesota) 4 of 5
Country (United States) 43 of 55
Year (2020) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-10-12 Blind & Sons

Barberton, Ohio, United States

Blind & Sons is a provider of HVAC, plumbing and electrical services for homeowners. Blind & Sons was founded in 1937 and is based in Barberton, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-03-11 Paramount Mechanical

Manassas, Virginia, United States

Paramount Mechanical designs, installs, and services complex Mechanical/HVAC, Electric, and Plumbing systems throughout the Mid-Atlantic and Southeast U.S. markets. Over the years, Paramount has successfully positioned itself as the preferred service and installation provider for owners and facility managers of complex HVAC and mechanical systems. Customers include large industrial and multi-family residential complexes as well as federal, state, and municipal government agencies. Paramount Mechanical was formed in 1989 and is headquartered in Manassas, Virginia.

Buy -