M&A Deal Summary

MFG Partners and Tecum Capital Acquire Mail Communications Group

On August 31, 2017, private equity firms MFG Partners and Tecum Capital acquired business services company Mail Communications Group from Stone Arch Capital

Acquisition Highlights
  • This is MFG Partners’ 1st and Tecum Capital’s 6th transaction in the Business Services sector.
  • This is MFG Partners’ 1st and Tecum Capital’s 43rd transaction in the United States.
  • This is MFG Partners’ 1st and Tecum Capital’s 1st transaction in Iowa.

M&A Deal Summary
Date 2017-08-31
Target Mail Communications Group
Sector Business Services
Buyer(s) MFG Partners
Tecum Capital
Sellers(s) Stone Arch Capital
Deal Type Secondary Buyout
Advisor(s) CIBC Cleary Gull (Financial)

Target

Mail Communications Group

Des Moines, Iowa, United States
Mail Communications Group is a presort mailing service company with capabilities in laser printing, letter processing, data collection, and electronic document presentation. Mail Communications Group serves clients in financial services, health care, insurance and other industries. Mail Communications Group was founded in 1987 and is based in Des Moines, Iowa.

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Buyer(S) 2

Buyer

MFG Partners

Investor Investor

Category Private Equity Firm
Founded 2016
Size Small
Type Sector Agnostic
DESCRIPTION

MFG Partners acquires controlling stakes in founder and family-owned industrial, manufacturing, distribution, and business services companies valued from $25 to $100 million. MFG will consider opportunities throughout North America and looks to collaborate with existing company leadership to identify and execute on growth opportunities and operational initiatives. MFG Partners was formed in 2016 and is headquartered in New York City.

DEAL STATS #
Overall 1 of 6
Sector (Business Services) 1 of 2
Type (Secondary Buyout) 1 of 1
State (Iowa) 1 of 1
Country (United States) 1 of 6
Year (2017) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-15 LCR Contractors

Hutto, Texas, United States

LCR Contractors specializes in providing spray applied to fireproof and spray thermal insulation services to commercial and residential construction projects. LCR Contractors was founded in 1984 and is based in Hutto, Texas.

Buy -
Buyer

Tecum Capital

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 2005
PE ASSETS 750M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Tecum Capital is a private equity firm focused on lower middle-market companies across the Eastern-US. Tecum will consider a variety of investment situations including leveraged buyouts, management buyouts, successions, strategic acquisitions, growth capital financings, and recapitalizations. Investment sizes range from $5 - $20 million. Industries of interest include manufacturing, plastics, specialty distribution, technology, healthcare services, defense, food, and business/consumer services. Tecum will not consider investments in start-ups or real estate. Tecum Capital was formed in 2005 and is based in Wexford, Pennsylvania.

DEAL STATS #
Overall 43 of 82
Sector (Business Services) 6 of 7
Type (Secondary Buyout) 3 of 4
State (Iowa) 1 of 1
Country (United States) 43 of 82
Year (2017) 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-31 Fluence Automation

Arlington Heights, Illinois, United States

Fluence Automation LLC provides mail and parcel sorting systems/hardware and related software and service revenue associated with the hardware as well as assets that will be leveraged for growth opportunities in the material handling and e-Commerce fulfillment markets. Fluence Automation is based in Arlington Heights, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-20 BPX Logistics

Greenwood, Indiana, United States

BPX Logistics is a truckload carrier providing local and linehaul intermodal transportation services; management of container yards and handling both import and export traffic into and out of the major Southeastern seaports and rail ramps, ports. BPX Logistics was founded in 1995 and is based in Greenwood, Indiana.

Buy -

Seller(S) 1

SELLER

Stone Arch Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 2003
PE ASSETS 259M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Stone Arch Capital is a private equity firm focused on lower middle market companies operating in the Midwest US. The firm pursues established companies valued from $25 to $125 million with EBITDA between $5 and $30 million. Target companies generally have 'protectable market positions', strong management in place, diverse customer bases, and 'predictable capital intensity'. Stone Arch will consider opportunities in a wide variety of manufacturing and service industries, excluding real estate, technology, and commodity industries. Typical equity investment range between $10 and $25 million. Stone Arch Capital was formed in 2003 and is based in Minneapolis, Minnesota.

DEAL STATS #
Overall 8 of 13
Sector (Business Services) 1 of 1
Type (Secondary Buyout) 5 of 7
State (Iowa) 1 of 2
Country (United States) 7 of 12
Year (2017) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-09-30 Natural Resource Group

Minneapolis, Minnesota, United States

Natural Resource Group LLC is a provider of environmental permitting and consulting services for feasibility, routing, public affairs, environmental inspection, and environmental due diligence to the energy industry.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-08-01 Mid-State Restoration

Lakeville, Minnesota, United States

Mid-State Restoration is a pavement preservation contractor providing road reconstruction solutions to public and private enterprises throughout the United States. Mid-State Restoration is based in Lakeville, Minnesota.

Sell -
Mergr

Product

Company

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