M&A Deal Summary

Stone Arch Capital and LNC Partners Acquire Norwesco

On July 11, 2005, private equity firms Stone Arch Capital and LNC Partners acquired manufacturer Norwesco from Norwest Equity Partners and Brockway Moran & Partners for 160M USD

Acquisition Highlights
  • This is Stone Arch Capital’s 1st and LNC Partners’ 1st transaction in the Manufacturing sector.
  • This is Stone Arch Capital’s and LNC Partners’ 2nd largest (disclosed) transaction.
  • This is Stone Arch Capital’s 1st and LNC Partners’ 15th transaction in the United States.
  • This is Stone Arch Capital’s 1st and LNC Partners’ 2nd transaction in Minnesota.
Investment Fate
  • Norwesco was sold to a consortium of financial buyers in 2008.

M&A Deal Summary

Date 2005-07-11
Target Norwesco
Sector Manufacturing
Buyer(s) Stone Arch Capital
LNC Partners
Sellers(s) Norwest Equity Partners
Brockway Moran & Partners
Deal Type Secondary Buyout
Deal Value 160M USD

Target

Norwesco

Saint Bonifacius, Minnesota, United States
Norwesco, Inc. is a manufacturer of polyethylene tanks. Norwesco designs, manufactures, and markets a broad assortment of polyethylene tanks primarily to the agricultural and septic tank markets.

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Buyer(S) 2

Buyer

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 1 of 12
Sector (Manufacturing) 1 of 2
Type (Secondary Buyout) 1 of 1
State (Minnesota) 1 of 4
Country (United States) 1 of 11
Year (2005) 1 of 1
Size (of disclosed) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-17 ODG

North Hamburg, Ontario, Canada

ODG designs and manufactures gears and transmissions. It offers spur/helical, internal, spline, skived, and worms gears, as well as worms and sprockets; and transmissions. ODG was founded in 1962 and is based in North Hamburg, Ontario.

Buy -
Buyer

LNC Partners

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2010
PE ASSETS 700M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

LNC Partners is a private investment firm focused on providing $10 to $30 million of equity and junior capital to support a variety of company transactions. As a provider of debt, LNC offers subordinated debt and unitranche securities. As a provider of equity, LNC will invest as a minority or majority partner. Prospective transaction situations include buyouts, refinancings, acquisition financings, growth capital needs, and recapitalizations. Sectors of interest include business and information services, financial services, insurance, healthcare, and niche manufacturing. LNC Partners is based in Reston, Virginia.


DEAL STATS #
Overall 15 of 44
Sector (Manufacturing) 1 of 2
Type (Secondary Buyout) 3 of 6
State (Minnesota) 2 of 2
Country (United States) 15 of 44
Year (2005) 2 of 4
Size (of disclosed) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-01 Penguin Logistics

Wexford, Pennsylvania, United States

Penguin Logistics LLC (dba MHF Services) is a provider of specialized logistical solutions related to the movement of environmentally sensitive materials.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-01 Vitalyst

Bala Cynwyd, Pennsylvania, United States

Vitalyst is a provider of remote, desktop application software support services for Fortune 1000 Companies. The Company works in partnership with clients' IT departments as both a Help Desk support enhancement as well as a remote training department for desktop application software. Vitalyst was founded in 1992 and is based in Bala Cynwyd, Pennsylvania.

Buy -

Seller(S) 2

SELLER

Norwest Equity Partners

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1961
PE ASSETS 7.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Norwest Equity Partners (NEP) is a private equity firm focused on investing in growing and profitable middle-market companies. NEP targets investments in businesses valued between $50 and $500 million, typically investing $50 to $250 million of capital per investment. Funds are typically used to fund management buyouts, recapitalizations, and growth financing. Sectors of interest include manufacturing, distribution, healthcare, technology/business services, and consumer products/services. NEP is affiliated with Norwest Mezzanine Partners, an investment partnership focused on providing junior capital to middle-market companies. Norwest Equity Partners is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 4 of 54
Sector (Manufacturing) 1 of 2
Type (Secondary Buyout) 2 of 24
State (Minnesota) 2 of 13
Country (United States) 4 of 52
Year (2005) 1 of 3
Size (of disclosed) 11 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-25 Poet

Siox Falls, South Dakota, United States

Poet is an operator of renewable fuels company with a focus on corn and cellulosic ethanol with 26 plants in seven states the company produces over one billion gallons of ethanol annually. Poet was founded in 1983 and is based in Sioux Falls, South Dakota.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-19 Michaels of Oregon

Overland Park, Kansas, United States

Michaels is an manufacturer of accessories for the hunting, shooting sports and law enforcement markets.

Sell -
SELLER

Brockway Moran & Partners

Boca Raton, Florida, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION
Brockway Moran's headquarters in Boca Raton, Florida.
Brockway Moran's headquarters in Boca Raton, Florida.

Brockway Moran is a private equity firm that targets investments in privately held businesses, small cap public companies or subsidiaries and divisions of larger enterprises. The firm prefers profitable businesses with margins of at least 10%. Industries of interest include consumer products/services, industrial manufacturing, business services, health and fitness, healthcare, and value-added distribution. Brockway's geographic scope is within the US. Brockway seeks to invest between $15 and $100 million of equity capital in growth-oriented businesses valued between $50 and $250 million. Brockway Moran is based in Boca Raton, Florida.


DEAL STATS #
Overall 4 of 16
Sector (Manufacturing) 1 of 2
Type (Secondary Buyout) 3 of 10
State (Minnesota) 1 of 1
Country (United States) 4 of 16
Year (2005) 1 of 1
Size (of disclosed) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-12-06 Cosmetic Essence

South Holmdel, New Jersey, United States

Cosmetic Essence, Inc. is a provider of outsourced formulating, manufacturing, filling, packaging, and distribution services to the personal care products industry. Cosmetic Essence manufactures cosmetics and health and beauty care products, such as fragrances, cremes, lotions and color cosmetics, for a diversified base of branded marketers and retailers. Cosmetic Essence, Inc. was founded in 1982 and is based in South Holmdel, New Jersey.

Sell $245M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-07 GED

Glenwillow, Ohio, United States

GED designs, engineers, and manufactures automation solutions for the North American window and door industry. The Company’s solution offerings include equipment manufacturing, production software, and aftermarket parts and services. GED is based in Glenwillow, Ohio.

Buy -