Cherry Tree Advises Lewistown Rental & Affiliates on its Sale to H&E Equipment Services

Cherry Tree Advises Lewistown Rental & Affiliates on its Sale to H&E Equipment Services

Lewistown Rental & Affiliates

Cherry Tree Advises Lewistown Rental & Affiliates on its Sale to H&E Equipment Services

Cherry Tree Advises Lewistown Rental & Affiliates on its Sale to H&E Equipment Services

H&E Equipment Services Completes Acquisition of Lewistown Rental and Affiliated Companies

H&E Equipment Services, Inc. (“H&E” or the “Company”) (NASDAQ: HEES) announced the completion of its acquisition of Montana-based Lewistown Rental and three of its affiliated companies located in Havre, Glasgow and Great Falls, Montana. The acquisition adds a comprehensive mix of equipment with an original equipment cost of approximately $28.5 million.

Brad Barber, chief executive officer of H&E, stated, “With the addition of these four locations, H&E now has six locations in the state of Montana, addressing customer needs across the state. The acquisition is our third in the last six months and is indicative of our continued focus on expanding our geographic reach in the U.S. We are encouraged by the growing prospects for non-residential, industrial, infrastructure and agricultural projects in Montana and look forward to establishing a strong presence in this vibrant state.”

With the close of the transaction, H&E now operates 145 branch locations across 30 states.

About H&E Equipment Services, Inc
Founded in 1961, H&E Equipment Services, Inc. is one of the largest rental equipment companies in the nation. The Company’s fleet is among the industry’s youngest and most versatile with a superior equipment mix comprised of aerial work platforms, earthmoving, material handling, and other general and specialty lines. H&E serves a diverse set of end markets in many high-growth geographies and has branches throughout the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest and Mid-Atlantic regions.

 

Source: H&E Equipment Services

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Koch Industries

Cherry Tree Advises Koch Industries

Koch Industries

Cherry Tree Advises Koch Industries on their Sale Process

IntegritySolutions

“Cherry Tree was instrumental in gauging the market and determining values and how to make a transaction successful in a difficult environment.”

— Rod Garbe, Chief Operating Officer and Chief Financial Officer, Koch Industries, Inc.

INDUSTRY:
Consumer Products

DESCRIPTION:
Koch Industries is a premier provider and merchandiser of rope and twine, chain and wire rope, and related hardware products

HQ LOCATION:
Minneapolis, MN

TRANSACTION TYPE:
100% Sale to Hillman Solutions Corp.

Transaction

In January 2024, Koch Industries, Inc. (“Koch” or the “Company”) was acquired by Hillman Solutions Corp. (“Hillman”) (Nasdaq: HLMN), a leading provider of hardware products and merchandising solutions. This acquisition marks the entrance into rope and chain, a new product category for Hillman.
 
The Company’s 2,300 SKUs are in the complex, high-touch, rope and chain and associated hardware category which is a perfect addition to Hillman’s existing 112,000 SKU-portfolio. Koch’s customers include local and national retailers in the traditional hardware and farm and fleet channels based in the United States, and during its fiscal year ended May 31, 2023, Koch’s revenue totaled approximately $45 million. Financial terms of the transaction were not disclosed.

Koch Industries was founded by Randy and Dave Koch, entrepreneurs who have successfully built numerous companies.

Cherry Tree’s Role

Cherry Tree was engaged to advise the Company on the sale of the business. This included leading a competitive process to identify potential buyers and secure offers. Cherry Tree’s role included preparing evaluation material, communicating with target buyers, soliciting offers, negotiating terms, and supporting due diligence.

About Koch Industries, Inc.

Koch, a Minnesota based company established in 1978, is a premier provider and merchandiser of chain, rope, wire rope, hardware, load binders, cable pullers, 3-point hitch, trailer jacks and garage organization products.

While Koch was first established as a distributor of wire rope to farm stores, it successfully expanded its customer base to home improvement, hardware, and other retail market channels. In 2017, Koch Industries acquired Lehigh Consumer Products, LLC, now fully operating under Koch Industries, Inc. For more information visit www.kochmm.com

About Hillman Solutions Corp.

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman Solutions Corp. and its subsidiaries are leading North American providers of complete hardware solutions, delivered with outstanding customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & industrial customers. Leveraging its leading distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency. For more information on Hillman, visit www.hillmangroup.com.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for high quality, entrepreneurially managed growth companies, provides strategic advisory services for CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Integrity Solutions on its Recapitalization with Corridor Capital

Cherry Tree Advises Integrity Solutions on its Recapitalization with Corridor Capital

Integrity Solutions

Cherry Tree Advises Integrity Solutions on its Recapitalization with Corridor Capital

IntegritySolutions

“The Cherry Tree team is first class! They worked tirelessly to find the best partner for our company. I was amazed at how well they communicated and kept us informed throughout the process. Every member of the team was a joy to work with. Our owners and board are pleased and highly recommend this excellent firm.”

— Mike Esterday, CEO and Co-Owner

INDUSTRY:
Corporate Training

DESCRIPTION:
Provider of Corporate Sales, Customer Service and Coaching Training

HQ LOCATION:
Nashville, TN

TRANSACTION TYPE:
Recapitalization with Financial Sponsor

Situation

In November 2023, Integrity Solutions, a provider of corporate sales, customer service and coaching training programs that equip teams to achieve their full potential, was recapitalized by Corridor Capital, a Los Angeles-based private equity firm. Integrity Solutions has more than five decades of experience providing award-winning sales and service training programs in 130 countries to industries including healthcare, financial services, manufacturing, energy, utilities, agriculture, and more.

Cherry Tree’s Role

Cherry Tree was engaged to assist the Integrity Solutions shareholders and management in finding the right partner to continue its strong growth trajectory, and it was crucial to the Board of Directors that a new partner shared the Company’s values of integrity and excellence. Cherry Tree leveraged its education experience, disciplined processes, network of potential buyers to identify and achieve a favorable outcome for the Integrity stakeholders. Cherry Tree’s customized process included introductions and discussions with numerous potential investors in marketing the opportunity, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction.

About Integrity Solutions

Founded in 1968 by Ron Willingham, Integrity Solutions has spent decades creating and improving a unique learning process that translates knowledge and skills into real-world behaviors. Integrity’s award-winning sales and sales leadership programs have been taught in over 130 countries, serving various industries including healthcare, financial services, manufacturing, energy, utilities, agriculture and more.

About Corridor Capital

Founded in 2005 in Los Angeles, Corridor Capital is a private equity firm specializing in mid-market companies, focusing on services and distribution sectors. They aim for sustainable growth by improving infrastructure and efficiency. Their strategy involves forming close partnerships with management, particularly in family-owned or entrepreneur-led firms, to boost operational performance. Corridor Capital typically acquires controlling interests but encourages owners to retain significant stakes, ensuring aligned interests for successful transformations.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for high quality, entrepreneurially managed growth companies, provides strategic advisory services for CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Vexilar and AWC Distributing

Cherry Tree Advises Vexilar and AWC Distributing

Vexilar and AWC Distributing

Cherry Tree Advises Vexilar and AWC Distributing on their Sale to Rob Jablonski and Valiant Wealth

“The Cherry Tree team worked tirelessly, gathering information to set up a presentation for potential buyers to see. Team members were always available and quick to respond to any questions we had. Cherry Tree was with us from the beginning of the process to the end, ready to help us in any way they could, to a successful closing on the sale of our companies.

Even though it was a lot of hard work for Cherry Tree and ourselves, we also had some fun along the way!”

— Steve and Robin Baumann, Owners, Vexilar and AWC Distributing

INDUSTRY:
Consumer Products

DESCRIPTION:
Vexilar and AWC Distributing develop and sell products to the ice fishing market

HQ LOCATION:
Bloomington, MN

TRANSACTION TYPE:
100% Sale to a private investor and financial buyer

Transaction

In October 2023, Vexilar and AWC Distributing (the “Companies”) were acquired by Rob Jablonski and Valiant Wealth. The Companies are headquartered in Bloomington Minnesota.

Vexilar is a renowned technology company specializing in advanced ice fishing sonar, underwater cameras, and related fishing products for anglers and outdoor enthusiasts. AWC Distributing is an innovative ice fishing equipment provider, specializing in ice augers designed for modern high powered cordless electric drills.

Cherry Tree’s Role

Cherry Tree was engaged to advise the companies and their shareholders in identifying the best partner to transition the business to, managing the process, and completing the sale. It was crucial to the shareholders that the Buyer be able to continue the long tradition of delivering market-leading products, excellent customer service and a great work environment for employees. Cherry Tree’s role included preparing evaluation materials, communicating with the Buyers, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction.

About Vexilar

Vexilar is a dynamic and innovative technology company specializing in advanced sonar and fish-finding solutions for anglers and outdoor enthusiasts. With a rich heritage in the fishing and marine industry, Vexilar has become a trusted name in the ice fishing industry, offering a range of cutting-edge products designed to enhance the fishing experience. Its state-of-the-art sonar technology provides anglers with real-time, precise information about the underwater environment, helping them locate fish and optimize their fishing strategies.

About AWC Distributing (d/b/a K-Drill Ice Augers)

K-Drill is a renowned and leading manufacturer in the field of ice fishing equipment, specializing in innovative ice augers designed to revolutionize the way anglers drill holes through the ice. The drills are designed for modern high powered cordless electric drills and have a strong focus on quality, efficiency, and user-friendly design.

About Valiant Wealth

Valiant Wealth is a distinguished financial services firm dedicated to providing personalized wealth management and investment solutions to discerning clients. With a steadfast commitment to financial excellence and a client-centric approach, Valiant Wealth empowers individuals and businesses to achieve their financial goals and secure their financial futures.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies.  Additionally, it conducts private placements for high quality, entrepreneurially managed growth companies, provides strategic advisory services for CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises STAR Autism Support on its Recapitalization with Prairie Capital

Cherry Tree Advises STAR Autism Support on its Recapitalization with Prairie Capital

STAR Autism

Cherry Tree Advises STAR Autism Support on its Recapitalization with Prairie Capital

SafeNet logo

“Cherry Tree put incredible time and effort into this project over the last year and from my perspective went above and beyond. I sincerely appreciate the work and will be recommending Cherry Tree to anyone and everyone.”

— Jesse Arick | CEO, STAR Autism Support

INDUSTRY:
K-12 Education; Software-as-a-Service (SaaS)

DESCRIPTION: 
Provider of evidence-based curriculum materials, workshops, and trainings, to K-12 school districts and teachers who work with special education students, especially those with autism.

HQ LOCATION: 
Portland, OR

TRANSACTION TYPE:
Recapitalization / Sale to Financial Buyer

Situation:

In September 2023 STAR Autism Support (STAR), a leader in providing products and services that help K-12 schools serve students in special education, was recapitalized by Prairie Capital, a Chicago-based middle-market private equity firm. STAR combines research-validated, evidence-based curriculum and professional development services to drive effective and consistent instruction throughout school districts.  STAR’s system-wide implementation approach builds teaching capacity to help manage districts’ growing needs.

Cherry Tree’s Role:

Cherry Tree was engaged to help STAR and its shareholders identify the best partner to help the Company navigate its strong growth while maximizing shareholder value and maintaining its mission and value proposition. The Cherry Tree team advised STAR in a process that included both strategic entities as well as growth-oriented and experienced investors, where its role included preparing evaluation materials, effectively communicating the investment opportunity to potential investors and buyers, engaging with a wide range of qualified parties, soliciting proposals and negotiating attractive terms, and supporting the owners and management team through the diligence process and finalizing the definitive agreements.

About:

STAR Autism Support: STAR was founded in 2004 with the mission of helping others successfully implement research-based techniques (including applied behavior analysis), so that every child with autism can receive effective instruction. Co-founded by Dr. Joel Arick, who began working with children with autism in 1973, and Sheila Magee, a curriculum author with over 30+ years of experience in the field of special education and autism, STAR provides evidence-based curriculum materials, workshops, and training to school districts and teachers who work with students with autism. STAR has supported over 2,500 K-12 districts and continues to develop innovative solutions for all students across the autism spectrum. To learn more, visit www.StarAutismSupport.com.

Prairie Capital: Founded in Chicago in 1997, Prairie Capital is a private equity fund with a long and successful track record of scaling growth-oriented, lower middle market companies in partnership with talented founders and management teams. Since inception, Prairie has invested over $1 billion in 100+ platform companies. Prairie makes control equity investments in founder-owned companies that require company-building investments to evolve into scalable platforms capable of sustaining accelerated growth. Prairie targets companies with $4 to $12 million in EBITDA that participate in growing subsectors within education, technology, business services, consumer, healthcare, and industrial.

Cherry Tree & Associates: Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for high quality, entrepreneurially managed growth companies, provides strategic advisory services for CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC