XLCS Partners, Inc., a leading middle market investment bank, is pleased to announce that it served as exclusive advisor to Innovative Components, Inc. and Componentes Innovadores Limitada in its sale to Essentra plc.

Innovative Components, headquartered in Schaumburg, Illinois, is one of the leading manufacturers and distributors in North America of knobs, pins, and handles for a broad range of end-markets. In addition to its complete line of standard plastic clamping knobs, the company has engineered a wide variety of custom knobs for specific applications that fill customer’s exact needs and specifications. The company was established in 1992 and added its Costa Rica division, Componentes Innovadores Limitada, in 2006.

The combination of Innovative Components and Essentra is highly complementary, with our companies sharing many of the same core values, competencies, and goals,” said Mike O’Connor, Innovative Components President. “I am very excited by the joining of our two companies, and I am convinced we will have a successful and profitable integration.”

Essentra plc is a United Kingdom based FTSE 250 company organized into four divisions; components solutions, packaging, filter products, and specialist components. Essentra focuses on the light manufacture and distribution of high volume, enabling components, which serve customers in a wide variety of end-markets and geographies. Essentra’s global network extends to 34 countries and includes 8,000 employees, 45 principal manufacturing facilities, 30 sales and distribution operations, and 4 research & development centers.

“As a leading provider of knobs, pins, and handles, Innovative Components both strengthens and extends our product range while adding further valuable manufacturing capacity in the Americas,” said Paul Forman, Essentra CEO.  “Innovative Components is a strong strategic fit with our own successful hardware business and another example of the attractive acquisition opportunities available to our Components division.”

XLCS acted as the exclusive M&A advisor to Innovative Components and the transaction was led by Anthony Contaldo, Partner. The transaction was completed in June 2019.

“Selling a business is a difficult process, however, XLCS Partners made the process as problem-free as is possible,” added O’Connor. “Anthony Contaldo and his team made sure that we received a strong price and that our interests were always protected.”

About XLCS Partners, Inc.
XLCS Partners is an investment banking firm providing M&A advisory services to select clients globally.
More information is available at www.xlcspartners.com

XLCS Partners, Inc., a leading middle market investment bank, is pleased to announce that it served as exclusive advisor to MAAS Aviation Group in its sale to Egeria. The Company’s executive management team has retained a minority interest in the Company.

Founded in 1983, MAAS is a leading specialist aircraft painting company with operations in the Netherlands, Germany and the USA. Having originally operated in Ireland at both Shannon and Dublin airports, the Company relocated to a new continental Europe base at Maastricht Airport in the Netherlands in 1988. The Company forged a very successful partnership with Airbus Group and currently operates four dedicated OEM paint shops at Airbus manufacturing facilities in Hamburg, Germany and in Mobile, Alabama. The Company also operates five additional MRO aircraft paint shops in the Netherlands and Alabama resulting in its position as a global player in the aircraft painting industry. MAAS employs 300 employees and is currently painting approximately 400 aircraft a year with plans to grow both employment and capacity over the next five years.

As well as painting commercial aircraft, MAAS has also developed expertise in the design and procurement of state-of-the-art paint shops. This capability, combined with its aircraft painting expertise, has contributed to the Company’s growth in recent years. MAAS’ paint shop infrastructure ranks amongst the best in the world.

The investment by Egeria provides MAAS with the financial backing and support to enable management to deliver further planned growth and to meet known opportunities driven by the increase in demand for aircraft painting as a result of the macro growth drivers in the global aviation sector.

“The investment by Egeria is a very positive step for the Company and provides the backing to invest in the personnel and infrastructure to support its existing operations and more importantly to deliver the Company’s future growth plans,” stated Tim Macdougald, CEO of MAAS.

Amsterdam based Egeria is an independent Dutch investment company founded in 1997, which invests in healthy companies with an enterprise value between EUR 50 million and EUR 350 million. Egeria’s portfolio companies have a combined turnover of over EUR 2.3 billion and employ close to 10,000 people.

“Egeria’s excitement for growth and professionalism made them the right partner for our client,” stated Joe Contaldo, Partner and Co-Founder of XLCS. “With operations spread across four countries, this transaction further illustrates just how global the aviation sector is and how multi-national companies benefit from seeking out XLCS Partners’ international aviation and aerospace M&A expertise.”

XLCS acted as the exclusive M&A advisor to MAAS, and the transaction was led by Joe Contaldo, Partner. The transaction was announced on May 23, 2019.

About XLCS Partners, Inc.
XLCS Partners is an investment banking firm providing M&A advisory services to select clients globally.
More information is available at www.xlcspartners.com

XLCS Partners, Inc., an independent investment banking firm providing M&A advisory services, is pleased to announce that it served as exclusive advisor to Property Registration Champions, LLC (PROCHAMPS) in its recapitalization by Post Capital Partners and the Company’s existing shareholders.

PROCHAMPS, based in Melbourne, Florida, is a full-service technology and system administrator for property registration programs across the country. Utilizing the experience of its employees and its proprietary technology, the Company partners with municipalities to assist with creating or modifying property registration ordinances, identify foreclosed and vacant properties, engage with responsible parties to fulfill registration requirements and collect registration fees. In addition, PROCHAMPS recently launched a rental property registration offering for renter occupied properties which has become an area of concern for municipalities. Through its services, PROCHAMPS provides municipalities with significantly improved property registration compliance rates and incremental revenue with no out-of-pocket cost.

Post Capital Partners is a New York City based private investment firm that makes both minority growth and control investments in businesses with repeat or recurring revenue models. Post Capital utilizes an Executive-First strategy in which it works with talented executives to proactively identify and then invest in attractive businesses together. Bob Mannarino, a 30-year veteran in the management and leadership of outsourced services companies, will join the PROCHAMPS management team as CEO. He was most recently interim CEO of GCR Incorporated, an IT and professional services company.

“From our initial phone and e-mail communications to our first face-to-face meeting, Andrew and XLCS Partners earned our confidence and trust,” said Tom Darnell, PROCHAMPS CFO. “Their obvious knowledge of, and ability to create and deliver, a ‘seller’s market’ experience were key and lucrative factors in our business decision. This was the most important deliberation my business partner and I have ever made, and the bedside manner of the XLCS designated team members only increased our comfort level and served to reinforce we had made the correct choice. Our thanks to Andrew and the entire XLCS team that led us through and supported this business process. I personally feel like new friends have been made for years to come.”

XLCS acted as the exclusive M&A advisor to PROCHAMPS, and the transaction was led by Andrew Sannes, Managing Director. The transaction was completed April 1, 2019.

About XLCS Partners, Inc.
XLCS Partners is an investment banking firm providing M&A advisory services to select clients globally.
More information is available at www.xlcspartners.com

XLCS Partners, Inc., an independent investment banking firm providing M&A advisory services, is pleased to announce that it served as exclusive advisor to Hagerty Industrial Supply (Hagerty) in its sale to White Distribution & Supply, LLC (WDS), a portfolio company of Slate Capital Group.

Hagerty is a value-added distributor of Class C Maintenance, Repair, Operating and Production (MROP) supplies to OEMs and construction/trade contractors. The Company boasts a broad product inventory of over 20,000 SKUs. Major product categories include fasteners/hardware, tools, abrasives, safety supplies, and other industrial supplies. Services include in-plant storeroom management, bin/crib management services, and complete vendor managed inventory solutions. Hagerty also owns and manages over 50 tech-enabled vending machines within multiple customers’ plants that vend tools, safety supplies, and other products.

Hagerty operates out of five Midwest locations including headquarters in Peoria, Illinois. Hagerty Supply is a division of Hagerty Brothers Company. Founded in 1860, Hagerty Brothers Company remains locally owned and managed by fifth and sixth generation descendants of the original founder, Saul Hagerty.

Headquartered in Fairbury, Illinois, WDS is an integrated distributor of industrial supplies and MRO products for OEMs, including fasteners, adhesives, packaging, foam, poly, glass, safety, janitorial, and more. Founded in 1984, WDS provides total supply chain management and cost reduction solutions for their customers with 15 locations nationwide.

Slate Capital Group is a Baltimore, Maryland based private equity investment group that partners with lower-middle market companies. Slate Capital Group provides liquidity to business owners and growth capital to businesses for further expansion. The principals of Slate Capital Group have significant experience in both running small to mid-sized companies and investing in leveraged buyout transactions.

“We are delighted to join forces with the Hagerty team,” said Erik Ginsberg, Managing Partner of Slate Capital Group. “Hagerty has been putting their customers first since 1860, and our colleagues at WDS share their commitment to service and to excellence. We look forward to a long and successful partnership.”

XLCS acted as the exclusive M&A advisor to Hagerty and the transaction was led by Anthony Contaldo, Partner. The transaction was completed March 29, 2019.

About XLCS Partners
XLCS Partners is an investment banking firm providing advisory services to select clients globally. For 37 years we have been serving clients with our transaction knowledge, creative solutions, selfless insight, and truthful advice.

XLCS Partners, Inc., an independent investment banking firm providing M&A advisory, capital raising, and debt advisory services, is pleased to announce that it served as exclusive advisor to L.A.B. Equipment. Inc. (L.A.B.), in its sale to Spectral Dynamics, Inc.

Founded in 1933, L.A.B. is a global leader in the design, manufacturing, and service of product reliability and package testing equipment. This includes drop testers, shock testers, hydraulic vibration, mechanical vibration, incline impact testers; and through their sister company, Techlab Systems, compression testers. Customers include some of the world’s most recognizable brand names, who depend on the Company’s test systems for use in their own laboratories to test their products and packaging. These manufacturers represent a variety of industries, such as appliances, computers, food, packaging, consumer goods, and electronics. L.A.B. is headquartered in Itasca, Illinois.

Spectral Dynamics is a leading worldwide supplier of systems and software for vibration testing, structural dynamics and acoustic analysis. Spectral Dynamics’ products are used for design verification, product testing and process improvement by manufacturers of all types of electronic and mechanical products. Spectral Dynamics is based in San Jose, California with additional offices in San Juan Capistrano, California; Detroit, Michigan; Baltimore, Maryland; and France, Germany, India, and the United Kingdom.

“Our organizations will have an opportunity to build upon the synergies of our talented people, markets, and products to become even more successful,” said Stewart Slykhous, President and CEO of Spectral Dynamics. “We are very excited about the technology and resources available to our customers and the opportunities we will be able to offer to our employees going forward.”

The manufacturing operations of L.A.B. will remain in Itasca as will the engineering, sales, and related support.

“We had a great partner in XLCS Partners that made this transaction possible,” said Bill Noonan, L.A.B. CEO. “John Sheridan and his team were truly professional and provided fantastic support throughout the process. It is not easy selling a niche technical manufacturing company but they were great in guiding us through the sale and delivered an excellent outcome with no surprises.”

XLCS acted as the exclusive M&A advisor to L.A.B. and the transaction was led by John Sheridan, Managing Director. The transaction was completed March 15, 2019.

About XLCS Partners
XLCS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors and raising debt or equity capital.

CHICAGO, IL – XLCS Partners, Inc., an independent investment banking firm providing M&A advisory, capital raising, and debt advisory services, is pleased to announce that its client, Proven Partners Group (PPG), has been acquired by Tilia Holdings. 

PPG is an outsource provider, also known as a contract packer (co-packer) or contract manufacturer (co-man) to major food and consumer packaged goods companies in the dried food market including food, nutrition, medical nutrition, and health science. Founded in 2004, the Company offers integrated supply chain value-added services to its customers. PPG produces primarily dry and free flowing products in multiple blending, filling and packaging technologies such as; jars, canisters, pouches, bags, cartons, single/multi-serve, or combinations of same. The Company is headquartered in Elgin, Illinois and employs approximately 250 full-time employees.

Tilia Holdings is a Chicago, Illinois based private investment firm focused exclusively on the food supply chain. Through an interdisciplinary approach to investing, Tilia partners with business services companies that support leading and emerging CPG brands. This acquisition supports Tilia’s mission of making the food chain safe, nutritious and sustainable. 

“Bob Contaldo and his team at XLCS played a critical role in supporting the transaction and bringing the two parties together,” said Johannes Burlin, Chairman of PPG and Co-CEO of Tilia Holdings. “We are thrilled to partner with PPG and further invest behind their continued growth.”

“Building relationships, integrity, trust, patience and over-delivering upon commitments. These are just some of the pillars that built the foundation behind PPG,” shared Dave Nelson, CEO of PPG. “Bob Contaldo and the entire XLCS Partners team supporting our transaction delivered upon those pillars to levels we could have never imagined, nor anticipated, necessary throughout the process.” 

XLCS acted as the exclusive M&A advisor to PPG and the transaction was led by Bob Contaldo, Managing Partner. The transaction was completed February 22, 2019.

About XLCS Partners

XLCS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors and raising debt or equity capital.

CHICAGO, IL – XLCS Partners, Inc., an independent investment banking firm providing M&A advisory, capital raising, and debt advisory services, is pleased to announce that its client, 1st Choice Aerospace, Inc. has been acquired by VSE Aviation, Inc., a subsidiary of VSE Corporation (NASDAQ: VSEC).

1st Choice provides MRO services, including pneumatics, fuel, electro-mechanical, electrical accessories, crew seats, interiors, lavatory systems, oxygen systems, cargo systems, and containers. 1st Choice is a Federal Aviation Administration and European Aviation Safety Agency Part 145 certified component repair station with locations in Florida and Kentucky. 1st Choice customers include commercial and cargo airline operators, end users, integrators that manage airline repairs, Original Equipment Manufacturers, suppliers, and other MRO providers.

The initial purchase price paid at closing was $112 million in cash.  The purchase agreement also includes potential post-closing payments of up to $40 million if 1st Choice surpasses certain thresholds of gross profit (as defined in the purchase agreement) during 2019 and 2020. VSE Aviation has retained the senior management team through employment contracts to continue management of 1st Choice operations and its approximately 200 employees.

“Joe Contaldo and the team of professionals at XLCS were essential to our successful transaction,” said Mario Catalano, a senior officer and shareholder of 1st Choice. “They are the perfect blend of experience and size, while still maintaining customer focus. With their guidance and expertise, we found the perfect partner for our business.”

Established in 2015 by VSE Corporation, VSE Aviation is a family of companies that includes Air Parts & Supply Co., CT Aerospace LLC, Kansas Aviation LLC, Prime Turbines LLC, VSE Aviation GmbH, and VSE Aviation Singapore PTE LTD that specialize in MRO services and parts supply for commercial, corporate and regional aircraft.

VSE Corporation (NASDAQ: VSEC) is a diversified products and services company providing logistics solutions with integrity, agility, and value. VSE is dedicated to making its federal and commercial clients successful by delivering innovative solutions for vehicle, ship, and aircraft sustainment, supply chain management, platform modernization, mission enhancement, and program management, and providing energy, IT, and consulting services.

XLCS Partners acted as the exclusive advisor to 1st Choice Aerospace and the transaction was led by Joe Contaldo, Partner. The transaction was completed on January 10, 2019.

About XLCS Partners

XLCS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors and raising debt or equity capital.

XLCS Partners, Inc., an independent investment banking firm providing M&A advisory, capital raising, and debt advisory services, is pleased to announce that its client, City Wide Building Services has been acquired by NCK Capital.

Founded 50 years ago, City Wide is the premier full-service commercial building maintenance company headquartered in Dallas, Texas. The Company provides B2B services such as high-rise window cleaning, pressure washing, waterproofing, and rooftop anchor inspection. City Wide services approximately 1,500 properties annually, including some of the most well-known addresses in Texas. The Company services commercial, municipal and hospital properties. City Wide is a portfolio company of Boston, Massachusetts private investment firm, Double R Partners.

NCK Capital is a Dallas, Texas based private equity firm that acquires controlling interests in lower middle-market companies. The firm provides capital structures, management incentives, and operational support to its partner companies. NCK Capital seeks to invest in companies operating in business services, niche manufacturing, specialty distribution, for-profit education, and healthcare sectors.

“I really enjoyed working with Anthony,” said Greg Ambrosia, CEO of City Wide.  “I found him to have the highest level of integrity and deal savvy, both of which I relied heavily on during the marketing and sale of my business.  I would definitely use him again on a future opportunity and recommend him to anyone looking for a trustworthy advisor.”

XLCS acted as the exclusive M&A advisor to City Wide and the transaction was led by Anthony Contaldo, Partner. The transaction was completed November 2, 2018 with financing provided by Midwest Mezzanine Funds and Huntington Capital Investment Company.

About XLCS Partners

XLCS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising, and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight, and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors and raising debt or equity capital.

More information is available at www.xlcspartners.com.