M&A Deal Summary

Midwest Growth Partners Acquires Jackrabbit

On May 7, 2019, private equity firm Midwest Growth Partners acquired machinery company Jackrabbit from Pegasus Capital Group and Gladstone Investment

Acquisition Highlights
  • This is Midwest Growth Partners’ 1st transaction in the Machinery sector.
  • This is Midwest Growth Partners’ 3rd transaction in the United States.
  • This is Midwest Growth Partners’ 1st transaction in California.

M&A Deal Summary

Date 2019-05-07
Target Jackrabbit
Sector Machinery
Buyer(s) Midwest Growth Partners
Sellers(s) Pegasus Capital Group
Gladstone Investment
Deal Type Secondary Buyout
Advisor(s) Prestwick Partners (Financial)

Target

Jackrabbit

Ripon, California, United States
Jackrabbit is a manufacturer of harvesting machines that are now standard in the nut farming industry. Jackrabbit’s machines are stapled products in almond, walnut, and pecan harvesting, while Dakota’s self-propelled pruning towers and laser cutting and forming services expand its reach into crop industries, including cherries and avocados. Jackrabbit was founded in 1981 and is based in Ripon, California.

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Buyer(S) 1

Buyer
DESCRIPTION

Midwest Growth Partners is a private equity firm focused on investing in established, growing businesses throughout rural areas across the country. The Firm targets businesses operating in the food, agriculture, manufacturing, and distribution sectors with $4 to $100 million in revenue. Midwest Growth Partners provides a variety of debt and equity capital and seeks to commit $500k to $10 million per investment. Midwest Growth Partners was formed in 2013 and is headquartered in Des Moines, Iowa.


DEAL STATS #
Overall 3 of 15
Sector: Machinery M&A 1 of 3
Type: Secondary Buyout M&A Deals 1 of 2
State: California M&A 1 of 1
Country: United States M&A 3 of 15
Year: 2019 M&A 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-07 Gilman Cheese

Gilman, Wisconsin, United States

Gilman Cheese is a manufacturer of shelf-stable processed cheese for the gift pack, retail, and airline industry as well as smoked cheese, both natural and processed. Gilman Cheese was founded in 1948 and is based in Gilman, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-01 AgCertain

Ames, Iowa, United States

AgCertain is a food, agricultural and bio-based product development, manufacturing and marketing company. AgCertain Industries was founded in 2018 and is based in Ames, Iowa.

Buy -

Seller(S) 2

SELLER

Pegasus Capital Group

Santa Monica, California, United States

Category Private Equity Firm
Founded 1997
Size Small
Type Sector Agnostic
DESCRIPTION

Pegasus Capital Group is a private investment firm that acquires established, profitable, growth-oriented businesses in non-technology intensive industries. Pegasus has a particular interest in niche-manufacturing, but will also consider value-added distribution and specialty service companies. The Firm prefers North American opportunities. Prospective companies typically have revenues of $5 to $75 million and EBITDA of at least $2 million. Pegasus avoids investing in start-ups, early-stage ventures, technology-driven companies, or minority investments. Pegasus Capital Group was formed in 1997 and is located in Los Angeles, California.


DEAL STATS #
Overall 9 of 10
Sector: Machinery M&A 3 of 3
Type: Secondary Buyout M&A Deals 3 of 3
State: California M&A 3 of 3
Country: United States M&A 9 of 10
Year: 2019 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-09-17 American Piping Products

Chesterfield, Missouri, United States

American Piping Products is a specialized distributor of seamless and welded pipe and tubular related products. American Piping Products serves international customers in a variety of end markets including energy, refining, petrochemical, power generation, and diversified industrial. American Piping Products was founded in 1994 and is based in Chesterfield, Missouri.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-10 LSI

Gilbert, Arizona, United States

LSI is a provider of SAP enterprise solutions to government, utility, healthcare and educational institutions. LSI was founded in 2005 and is based in Gilbert, Arizona.

Sell -
DESCRIPTION

Gladstone Investment Corporation is a business development company focused on partnering with profitable lower middle-market companies in the manufacturing, consumer products, and business services sectors. The Firm looks for profitable businesses throughout the US where it can invest equity/debt capital of up to $75 million. Gladstone Investment Corporation was formed in 2005 and is based in McLean, Virginia.


DEAL STATS #
Overall 3 of 4
Sector: Machinery M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 2
State: California M&A 2 of 2
Country: United States M&A 3 of 4
Year: 2019 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-30 Educators Resource

Mobile, Alabama, United States

Educators Resource is a wholesale distributor of school supplies and K-12 supplemental teaching materials to market leading e-retailers and brick-and-mortar stores nationwide. Educators Resource is based in Mobile, Alabama.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-07-24 Managed Labor Solutions

Allentown, Pennsylvania, United States

Managed Labor Solutions is a provider of outsourced services to the rental car industry. It also offers commercial janitorial services through Professional Maintenance Co. Managed Labor Solutions was founded in 1971 and is based in Allentown, Pennsylvania.

Buy -