Smart Business Magazine, December 2019

December 2019 Smart Business Cleveland 33 Corporate carve outs still a good option BY MATT ROBERTS W hile there were a number of deals completed in Northeast Ohio in October the month was highlighted by several prominent corporate carve out transactions Carveouts usually occur when a unit is no longer central to the companys overall business strategy In other cases it may be an organization that is looking to generate additional capital Carve outs often have growth potential to the buyer and are attractive due to the established customers suppliers and management that are already in place In early October Worthington Industries acquired Heidtman Steel Products Inc s pickling and slitting facility in Cleveland This acquisition allows Worthington to expand its presence in what the Columbus based metals manufacturing company sees as an attractive market complementing its existing capabilities in the area Sunrise Florida based MEDNAX Inc sold its Brecksville based MedData business to Frazier Healthcare Partners This transaction is part of MEDNAXs ongoing transformation to focus on its core physician services business while reducing leverage and future capital expenditures Frazier intends to pursue opportunities to accelerate and enhance MedDatas services Akron based Gabriel Performance Products acquired a select portfolio of alkyd resins from Deltech Resin Co complementing its current offerings and continuing to grow its proprietary product portfolio In other deal activity Parker Hannifin Corp closed a previously announced deal with LORD Corp and has completed over 5 billion in transaction value this year There was also strong strategic acquisition activity from a number of great middlemarket companies in Northeast Ohio including TPC Wire Cable Thogus Products Co MobilityWorks and The Reserves Network to name a few SELECTED NORTHEAST OHIO MERGERS ACQUISITIONS Closed Target Issuer Name Buyer Investor Name Seller Name Local companies in bold Source Pitchbook Oct 31 OmniUpdate Destiny Solutions The Riverside Co Oct 29 LORD Corp Parker Hannifin Corp Oct 29 ProSites Inc Rockbridge Growth Equity The Riverside Co Oct 28 GEON Performance SK Capital Partners PolyOne Corp Products Solutions Oct 27 Hurtuk Daroff Co Walter Haverfield Oct 27 Nardone Walter Haverfield Oct 24 Select Portfolio of Alkyd Resins Gabriel Performance Products AEA Investors Audax Group Deltech Resin Co from Deltech Resin Oct 24 LogicJunction Purple WiFi Oct 24 Wyse Falls Oct 23 ExecuTeam Staffing The Reserves Network Oct 22 Sunday Streams BoxCast Oct 18 The Hartley 31 Locations Campbell Oil Co Oct 16 Avalon Precision Casting Sigma Electric Manufacturing Corp Argand Partners Keystone Capital Inc Oct 16 Fisher Unitech Computer Aided Technology CIVC Partners LP The Riverside Co Oct 15 Gordian Compliance Solutions RIA in a Box Oct 11 Freedom Mobility MobilityWorks Flexpoint Ford Oct 11 Regulatory and Quality Solutions Chartwell Investments DFW Capital Partners PNC Erieview Capital Oct 10 MedData Frazier Healthcare Partners MEDNAX Inc Oct 10 Proto Plastics Thogus Products Co Oct 9 Affinity Elevator Oracle Elevator Bratenahl Capital Partners L Squared Capital Partners Oct 8 Jigsaw Systems Strategic Pricing Associates Oct 7 C A Industries Medical Solutions PNC Erieview Capital TPG Growth Oct 7 Heidtmans Pickling and Worthington Industries Heidtman Steel Slitting Facility in Cleveland Products Inc Oct 2 D S Color Supply Inc Painters Supply Equipment Co Oct 2 Jade Equipment Corp Jade Arch Global Precision Babson Capital Management Precision Medical Components Kirtland Capital Partners The Jordan Co Oct 2 Pittsburgh Wire and Cable TPC Wire Cable Audax Group Oct 1 1 EDI Source Inc ACE Co Canada Pension Plan Investment Board Epicor Software Corp KKR Co Oct 1 Ohio Basement Systems Groundworks For more information about the Association for Corporate Growth visit www acg org cleveland Matt Roberts is a vice president with and runs the Cleveland office for Copper Run Capital LLC Copper Run Capital is a middle market investment banking advisory firm For more information on Copper Run please visit www copperruncap com or email mroberts@ copperruncap com PolyOne Corp finalized a deal to sell its performance products and solutions business to SK Capital Partners a New York based private equity firm for 775 million in cash The company was renamed GEON Performance Solutions PolyOne determined that by divesting the business it would accelerate the companys growth strategy in PolyOnes remaining segments of specialty engineered materials colors additives and inks and distribution as well as pay down debt Having done several corporate carve outs in the past SK Capital is excited to continue to grow the business both through growth and improvement initiatives DEAL OF THE MONTH DEALMAKERS INSIDER