Buyout (LBO, MBO, MBI) • Chemicals

Mason Wells, Seidler Equity Partners, Ampersand Capital Partners and Northstar Capital Acquire Tomah3 Products

On January 1, 2003, private equity firm Mason Wells, private equity firm Seidler Equity Partners, growth capital firm Ampersand Capital Partners and mezzanine finance firm Northstar Capital acquired chemicals company Tomah3 Products

Acquisition Context
  • This is Mason Wells’ 1st, Seidler Equity Partners’ 1st, Ampersand Capital Partners’ 1st and Northstar Capital’s 1st transaction in the Chemicals sector.
  • This is Mason Wells’ 6th, Seidler Equity Partners’ 4th, Ampersand Capital Partners’ 5th and Northstar Capital’s 8th transaction in the United States.
  • This is Mason Wells’ 4th, Seidler Equity Partners’ 1st, Ampersand Capital Partners’ 1st and Northstar Capital’s 1st transaction in Wisconsin.
Investment Fate
  • Tomah3 Products was sold to a publicly-traded strategic buyer in 2006 for 115M USD.

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M&A Deal Summary

Date January 1, 2003
Target Tomah3 Products
Sector Chemicals
Buyer(s) Mason Wells
Seidler Equity Partners
Ampersand Capital Partners
Northstar Capital
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Tomah3 Products

Tomah, Wisconsin, United States
Tomah Products is a manufacturer of specialty chemicals. Producer of ether amines and derivatives and a major producer of alcohol ethoxylates. Tomah is also a supplier of cationic, nonionic and amphoterics surfactants to a variety of markets in typically specialized applications.
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Buyers Overview 4

Buyer

Mason Wells

Milwaukee, Wisconsin, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 2.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Mason Wells is a private equity firm focused on middle-market buyout opportunities in the Midwest US. Mason Wells looks to invest in businesses operating in engineered products and services, outsourced business services, and specialty packaging. Target companies typically generate revenue of $25 to $300 million and EBITDA of at least $5 million. The Firm prefers businesses with high barriers to entry, limited customer concentration, and strong market positions. Mason Wells was originally formed 1982 as a subsidiary of Marshall & Ilsley Corporation and became an independent firm in 1998. Mason Wells is based in Milwaukee, Wisconsin.


Deal Context for Buyer #
Overall 6 of 40
Sector: Chemicals 1 of 1
Type: Buyout (LBO, MBO, MBI) 4 of 27
State: Wisconsin 4 of 17
Country: United States 6 of 40
Year: 2003 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-01-09 Jordan Controls

Milwaukee, Wisconsin, United States

Designer and manufacturer of a broad range of rotary, valve, and linear electric and electro-hydraulic actuators for process control and industrial automation. These products are used in the power generation, oil and gas, chemical, utilities, pulp and paper, and process industries. The investment was exited via a recapitalization transaction.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-07-02 Eder Industries

Oak Creek, Wisconsin, United States

Eder Industries is a Electronic Manufacturing Services (EMS), focused on manufacturing complex electronic assemblies for Original Equipment Manufacturers (OEM’s).

Sell -
Buyer

Seidler Equity Partners

Marina del Rey, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 5.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Seidler Equity Partners is a mid-market private equity firm focused on partnering with business owners and management to help build market-leading companies. Seidler will consider funding growth financings, family business transitions, owner-operator recapitalizations, management buyouts, liquidity for estate planning, and traditional buyouts. Seidler looks to invest in businesses with a proven track record and opportunities for growth. Prospective companies typically have minimum revenue of $25 million and EBITDA between $5 and $50 million. Seidler is a generalist firm and will consider investments across a wide range of industries, including manufacturing, service, and distributors. Seidler Equity Partners was formed in 1999 and is based in Marina del Rey, California.


Deal Context for Buyer #
Overall 4 of 19
Sector: Chemicals 1 of 3
Type: Buyout (LBO, MBO, MBI) 3 of 11
State: Wisconsin 1 of 2
Country: United States 4 of 19
Year: 2003 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-01-01 LA Fitness International

Irvine, California, United States

LA Fitness is a operator of full-service fitness clubs and currently serves over 1,000,000 members in over 275 clubs from New York to California. Clubs range in size from 20,000 to 60,000 square feet and typically offer access to circuit training equipment, free weights, cardiovascular equipment, aerobics programs, swimming pools, whirlpools, saunas and steam rooms, as well as racquetball and basketball courts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-11-01 Phone Directories Co.

Orem, Utah, United States

Phone Directories is independent publishers of telephone directories, servicing over 100 markets across the Western United States and Canada.

Buy -
Buyer

Ampersand Capital Partners

Wellesley, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1988
PE ASSETS 3.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Ampersand Capital Partners is a middle-market private equity group that concentrates on growth equity investment opportunities in the healthcare sector. The Firm looks to invest $10 to $100 million in businesses with $10 to $100 million of revenue. Specific areas of interests within healthcare include lab products, specialty diagnostic equipment, pharmaceutical outsourcing, and specialty pharma. Ampersand generally prefers to be the first and sole institutional investor. Ampersand was formed in 1988 and is based in Wellesley, Massachusetts.


Deal Context for Buyer #
Overall 5 of 86
Sector: Chemicals 1 of 4
Type: Buyout (LBO, MBO, MBI) 1 of 23
State: Wisconsin 1 of 1
Country: United States 5 of 70
Year: 2003 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-08-30 Sheldahl

Northfield, Minnesota, United States

Sheldahl, Inc. is a Producer of high-density substrates, high quality flexible printed circuitry and flexible laminates.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-08-12 Stereotaxis

St. Louis, Missouri, United States

Stereotaxis is a medical device company that markets a magnetic control system with applications in electrophysiology, interventional cardiology and interventional neuroradiology. Stereotaxis was founded in 1990 and is based in St. Louis, Missouri.

Sell -
Buyer

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.


Deal Context for Buyer #
Overall 8 of 121
Sector: Chemicals 1 of 2
Type: Buyout (LBO, MBO, MBI) 6 of 45
State: Wisconsin 1 of 9
Country: United States 8 of 116
Year: 2003 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-01 Market Day

Itasca, Illinois, United States

Market Day Corp. is a marketer and distributor of restaurant quality food products sold to assist schools, youth, and community organizations with their fundraising efforts. The Company offers a wide range of frozen food products as part of a recurring Fundraising Program.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-02-01 Asset Management Outsourcing

Norcross, Georgia, United States

Asset Management Outsourcing is a provider of strategic accounts receivable management services. Asset Management Outsourcing is based in Norcross, Georgia.

Buy -