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.

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, DRIV-LOK has been acquired by The Mendota Group, in partnership with Capital for Business and Konza Valley Capital, Inc. (KVCI).

DRIV-LOK is the preferred brand for the broadest range of press-fit fastening and joining components for the leading OEMs and fastener distributors. Founded in 1936, DRIV-LOK manufactures over 2,000 SKUs comprising spring pins, grooved pins, dowel pins, barbed pins and more, and specializes in manufacturing engineered, application-specific “specials” as well as standard parts through stocking distributors. With more offerings than any other press-fit fastener manufacturer, DRIV-LOK offers customers flexibility without bias on the best fastening solution. DRIV-LOK is headquartered in Sycamore, Illinois.

The Mendota Group, based in Madison, Wisconsin focuses on private investments to support ownership transition and growth opportunities.  The Mendota Group acquired DRIV-LOK in partnership with St. Louis-based Capital for Business and Kansas City-based KVCI.

“XLCS’s in-depth understanding of our business combined with its well-executed process, marketing efforts and fastener industry experience allowed them to share our story with great results,” said Gary Seegers, DRIV-LOK CEO. “We are proud of all that the DRIV-LOK team has achieved and are excited to have found the right partners to build upon that success going forward.”

“DRIV-LOK is a highly regarded brand in a niche market with a nearly 80-year history,” stated Anthony Contaldo, Partner of XLCS.  “We were seeking a strategic acquirer that understands the fastener space and was committed to supporting DRIV-LOK’s existing management team in continuing the strong growth trajectory, all while preserving the Company’s unique corporate culture. The Mendota Group and their financial partners were a great fit in every respect.”

XLCS acted as the exclusive M&A advisor to DRIV-LOK and the transaction was led by Anthony Contaldo, Partner. The transaction was completed July 27, 2018 and marks the tenth recent fastener and industrial supply industry transaction for the firm.  Click here for more information on XLCS’s fastener industry expertise.

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.

About The Mendota Group

The Mendota Group is a private investment firm that targets Midwest US-based investments in low to medium technology manufacturing, distribution, and service related companies. The Mendota Group is based in Madison, Wisconsin.

About Capital for Business

Capital for Business (CFB) is a private investment firm focused on providing junior capital to growing lower middle-market companies with at least $8 million in sales. CFB targets businesses serving niche consumer, commercial, distribution, manufacturing, and service markets throughout the United States. CFB was founded in 1959 and is headquartered in St. Louis, Missouri.

About Konza Valley Capital, Inc.

KVCI, based in Kansas City, Missouri is a private equity, venture capital, and mezzanine investment firm specializing in Midwest based, small, lower middle market, and mature companies. KVCI seeks to invest in later-stage expansion financings and participates in acquisitions, ownership transitions, management buyouts, turnarounds, and recapitalizations.

 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, MedService Repair has been acquired by MPG Equity Partners.

MedService Repair supplies a broad line of consumable medical products including filters, lamps, enzymatic cleaners, forceps, and other products used primarily in endoscopic procedures. MedService is also a leading provider of repair services for endoscope reprocessors and sells refurbished reprocessors and other endoscope equipment.

MedService serves a diverse customer base of over 1,000 hospitals, clinics, and surgery centers that perform endoscopy procedures. The Company is known as one of the most trusted service providers in the industry due to its excellence in customer service, technical support, unique capabilities, and competitive pricing.

MPG Equity Partners is a privately funded family office that invests in healthcare, business, and consumer service companies, with a focus on niche manufacturing and value-added distribution. MPG partners with management teams to increase value by accelerating revenue growth, both organically and through complementary acquisitions.

XLCS acted as the exclusive M&A advisor to MedService Repair and the transaction was led by Brian Ytterberg, Managing Director. The transaction was completed August 31, 2018.

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.

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, Millennium Metals, has been acquired by Barsteel Corporation.

Millennium Metals is a Steger, Illinois based distributor of prime and secondary sheet, plate, and bar steel.  The Company offers more than 800 different sizes, grades, and lengths of bar and nearly 150 sizes and grades of plate and sheet. The Company’s customers use secondary steel to produce parts and finished goods that will end up in a variety of end markets including railroads, construction, fabrication, tool and die making, machine shops, automotive, agricultural industries, and other distributors.

Headquartered in Highland Park, Illinois, Barsteel Corporation is a metals service center and full-service distributor of hot rolled, cold rolled, and coated steel products to a broad range of manufacturers throughout the United States, Canada, and Mexico. The Company has extensive mill resources, processing capabilities, and logistical support, making it well positioned to satisfy the steel requirements of customers.

“It was a pleasure to be represented by XLCS Partners and John Sheridan,” said Gene Laster, Millennium Metals co-founder. “John not only directed and guided us throughout the process but, even more, was a friend and someone we could confide in when difficult decisions were required. I will always be thankful for John’s guidance and friendship.”

“After many years spent building Millennium Metals, the owners wanted to explore options for one of the partners to retire while still allowing the other partner to continue with the company,” explained John Sheridan, Managing Director. “Both of their goals were achieved by joining together Millennium Metals with Barsteel.”

XLCS acted as the exclusive M&A advisor to Millennium Metals and the transaction was led by John Sheridan, Managing Director. The transaction was completed November 5, 2018.

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

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, Ranger Air has been acquired by Aviation Technical Services (ATS).

Ranger Air is a premier supplier of aircraft airframe and engine accessories and components and provider of repair management services for a growing list of international customers. Since 2002, Ranger Air has introduced innovative inventory management programs and has stocked and traded parts for virtually every commercial airframe and engine platform in the world.

Headquartered in Everett, Washington, ATS provides a broad and growing portfolio of technical services in MRO (maintenance, repair and overhaul), Engineering, Component Repair and Parts Development world-wide. ATS supports both narrow body and wide body aircraft operators in the commercial and military aviation markets. Since its founding in 1970, ATS has received numerous industry awards for its support of turn-key fleet transition and integration, aircraft modifications, aircraft heavy maintenance, design services and component repair of accessories, structures, complex composites, hydraulics, pneumatics, heat exchangers and electrical components.

This acquisition launches ATS into the parts trading business and provides Ranger with access to ATS’s comprehensive repair capabilities to enable a quick return-to-service. The ATS group of companies offers Component Services, Airframe Maintenance, Engineering Support, and Alternate Solutions in ten locations across the United States. Ranger Air is the fourth acquisition for ATS in the Dallas-Fort Worth area over the past five years.

ATS is backed by New York based JLL Partners, a leading middle-market private equity firm with a 30-year track-record of building and transforming businesses through its financial and operational expertise. Since its founding in 1988, JLL Partners has committed approximately $5 billion across seven funds sourcing its deals from a deep network of industry contacts and creating value for its partners and investors.

XLCS acted as the exclusive M&A advisor to Ranger Air and the transaction was led by Managing Director Andrew Sannes. The transaction was completed on July 11, 2018.

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.

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, Steel & O’Brien Manufacturing (S&O), has been recapitalized by JZ Partners, Edgewater Funds, and members of the Company’s senior management team.

Founded in 1990, S&O is a leading manufacturer and supplier of Sanitary and Biopharmaceutical (BPE) stainless steel fittings, valves, and tubing primarily for the food, beverage, dairy, and pharmaceutical industries where sterility and cleanliness are required. Based in Arcade, New York, S&O is the only supplier in North America which stocks a full catalog of both Sanitary and BPE fittings and has full CNC machining and fabrication capabilities.

JZ Partners, LLC is a private equity firm based in Chicago and New York. JZ Partners advises the private investment activity of JZ Capital Partners Limited, a closed-end fund, founded in 1986, with more than $1 billion of assets under management. JZ Capital is one of the oldest closed-end investment companies listed on the London Stock exchange.

The Edgewater Funds is a Chicago, Illinois based private equity firm with over $2.7 billion of capital commitments raised since 2001. JZ Partners and Edgewater have partnered on investments for more than 15 years, having completed more than 80 transactions together across ten buy-and-build platforms over this time. The firms are focused on partnering with strong management teams of high-quality middle market companies, and adding value through operational, functional and M&A experience.

“We selected Joe Contaldo and the XLCS team for their impressive track record and level of service provided,” said Bryan Wells, President of Steel & O’Brien. “They had great passion for their business, which gave me great confidence in their ability to convey that same enthusiasm for our company.”

XLCS Partners acted as the exclusive advisor to S&O and the transaction was led by Joe Contaldo, Partner. The transaction was completed November 21, 2018.

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.