M&A Deal Summary

Ironwood Capital Acquires Morgan Contracting

On December 15, 2012, growth capital firm Ironwood Capital acquired construction company Morgan Contracting from Main Street Resources and Starboard Capital Partners

Acquisition Highlights
  • This is Ironwood Capital’s 2nd transaction in the Construction sector.
  • This is Ironwood Capital’s 34th transaction in the United States.
  • This is Ironwood Capital’s 1st transaction in Tennessee.

M&A Deal Summary

Date 2012-12-15
Target Morgan Contracting
Sector Construction
Buyer(s) Ironwood Capital
Sellers(s) Main Street Resources
Starboard Capital Partners
Deal Type Recapitalization

Target

Morgan Contracting

Knoxville, Tennessee, United States
Morgan Contracting is a construction contractor for water and wastewater infrastructure. MCI’s services include pipeline installation, design/build of wastewater treatment plants and pump stations, and tunneling for local municipalities and water authorities across the United States. Morgan Contracting was established in 1989 and is based in Knoxville, Tennessee.

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Buyer(S) 1

Buyer

Ironwood Capital

Avon, Connecticut, United States

Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1986
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Ironwood Capital is a private investment firm that makes equity and subordinated debt investments in lower middle-market companies. Investment proceeds are generally used to support leveraged buyouts, growth financings, and recapitalizations. Investments typically range from $10 to $40 million in companies generating $20 to $250 million in annual sales. Target sectors include healthcare products/services, value-added manufacturing, business services, consumer products, specialty distribution, and education. Ironwood prefers opportunities East of the Mississippi, but will selectively consider investments in the Western US. The Firm's investment horizon is three to five years. Ironwood Capital was formed in 2002 and is based in Avon, Connecticut.


DEAL STATS #
Overall 34 of 95
Sector (Construction) 2 of 7
Type (Recapitalization) 5 of 14
State (Tennessee) 1 of 1
Country (United States) 34 of 95
Year (2012) 7 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-04 SAFE Security

San Ramon, California, United States

SAFE Security, Inc. is one of the largest providers of security alarm systems in the United States. SAFE provides alarm monitoring and related services to over 100,000 customers in all 50 states, Puerto Rico and Canada. Company Founded in 1988 and headquartered in San Ramon, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-01-07 Advanced Recycling Systems

Lowellville, Ohio, United States

Advanced Recycling Systems is a designer and manufacturer of patented equipment utilized in the collection, recycling, and removal of dust and debris generated in industrial environments. Advanced Recycling Systems was founded in 1991 and is based in Lowellville, Ohio.

Buy -

Seller(S) 2

SELLER

Main Street Resources

Westport, Connecticut, United States

Investor


Category Private Equity Firm
Founded 1998
Size Small
Type Sector Agnostic
DESCRIPTION

Main Street Resources is a private equity firm that targets controlling or minority investments in middle-market businesses located in the Northeast US. Main Street typically invests $2 to $10 million in companies with $10 to $75 million of revenue. Prospective transaction situations include privatizations, management buy-outs, the funding of growth capital and add-on acquisitions, and buyouts of passive or unproductive shareholders. Main Sreet will not invest in startups, technology companies or turnarounds. Main Street Resources was formed in 1998 and is based in Westport, Connecticut.


DEAL STATS #
Overall 6 of 8
Sector (Construction) 2 of 3
Type (Recapitalization) 1 of 1
State (Tennessee) 1 of 1
Country (United States) 5 of 7
Year (2012) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-06-10 Midasco

Elkridge, Maryland, United States

Midasco provides installation and maintenance services for intelligent transportation systems, highway signing, lighting and signal categories in the Mid-Atlantic region of the U.S. Services include: estimating, bid preparation, engineering, project management, and full construction work on excavation, foundations, structure erection, electrical wiring, device installation, and integration.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-07-01 Glass America

Chicago, Illinois, United States

Glass America conducts an automobile glass repair and replacement business in 22 states.

Sell -
SELLER

Starboard Capital Partners

Southport, Connecticut, United States

Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 700M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Starboard Capital Partners LLC is an unsponsored investment group that works with private equity investors and management in acquiring mid-sized businesses valued between $25 and $100 million. In addition to investing, Starboard earns equity for initiating transactions and for ongoing advisory services. Sectors of interest include automotive, consumer products, building materials, construction, distribution, e-commerce, franchising, manufacturing, healthcare, and real estate. Starboard Capital was formed in 2004 and is based in Southport, Connecticut.


DEAL STATS #
Overall 4 of 11
Sector (Construction) 2 of 4
Type (Recapitalization) 2 of 2
State (Tennessee) 1 of 1
Country (United States) 4 of 11
Year (2012) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-18 WHI Solutions

Rye Brook, New York, United States

WHI Solutions is a provider of e-commerce tools for the automotive aftermarket. The company facilitates the sale of millions of brand name auto and truck parts, accessories, performance products, and consumer items.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-04 Heat Transfer Products Group

Scottsboro, Alabama, United States

Heat Transfer Products Group, LLC engages in design, manufacture and market refrigeration components and equipment used by food retailers and restaurants, sports arenas and warehouses, blood banks and pharmaceutical companies.

Sell -