SOS_AUXO

SOS_AUXO

SOS Manufacturing

Cherry Tree Advises SOS Manufacturing on its Sale to Auxo Investment Partners

“We first met the Cherry Tree team a few years ago. Their early advice was helpful in our decision not to sell then but rather continue growing and strengthening our business. When we were ready to sell, we engaged Cherry Tree. They led a disciplined process that created a competitive situation among multiple qualified buyers. The Cherry Tree team provided invaluable advice during the process and was with us every step of the way through closing. Cherry Tree worked closely with our financial and legal advisors and provided the overall project management to get a successful transaction completed. The result was a great outcome for our shareholders, employees, and customers.”

— Ray Stoner and Steve Oakins, Owners

INDUSTRY:
Industrial supplier to the automotive, aerospace, computer, electronic, networking and security sectors
DESCRIPTION:
Manufacturer of custom wire harness and cable assemblies
LOCATION:
Roberts, WI
TRANSACTION TYPE:
Sale to Financial Buyer

Transaction

SOS Manufacturing has announced that it has been acquired by Auxo Investment Partners, a Michigan based private equity firm. This transaction marks Auxo’s fourth acquisition in the space as the firm builds out its wire harness platform.

SOS Manufacturing makes specialized wire harnesses for business customers all over the world. The company was organized in 2001 and is currently headquartered and builds product in its facility in Roberts, Wisconsin. Major sectors served include automotive, aerospace, computer, electronic, networking and security. In addition, the Company offers engineering assistance, CAD drawings, complete box builds/product assembly and part kitting.

Cherry Tree’s Role:

Cherry Tree was engaged to advice SOS Manufacturing and its shareholders in identifying the best partner to help SOS achieve its next phase of growth through a sale of the business. The objectives were to maximize shareholder value and terms of a transaction, while managing an efficient closing process. Cherry Tree’s role included preparing evaluation materials, identifying and screening buyers, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of a transaction. It was especially important to the shareholders and management team that the process was well planned and efficiently executed, to not disrupt the core business operations, and to complete the transaction in a timely manner.

About Auxo Investment Partners

Auxo Investment Partners is a Grand Rapids, Michigan-based private investment firm that partners with owners and management teams of companies at transition points in their history. Auxo’s flexible capital model allows for long-term, growth-oriented decision-making without artificial deadlines. The structure was specifically designed for family businesses facing a generational transition or management teams seeking a partner to fuel growth and achieve their full potential with a long-term investment approach. Auxo’s unique philosophy aligns the interests of its companies, their employees, the communities in which they are located and its investors to achieve optimal outcomes for all. As our name reflects, we are not merely investors, but partners. For more information, please visit www.auxopartners.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 xSEL Labs on its Sale to 7 Mindsets

Cherry Tree Advises xSEL Labs on its Sale to 7 Mindsets

xSEL Labs

Cherry Tree Advises xSEL Labs on its Sale to 7 Mindsets

7 Mindsets Continues Rapid Growth with Acquisition of xSEL Labs

Move strengthens company’s ability to help educators understand students’ social and emotional strengths and needs

ROSWELL, Ga., Jan. 31, 2023 (GLOBE NEWSWIRE) — 7 Mindsets, the leader in PreK-12 mindsets-based learning and well-being solutions, today announced the acquisition of xSEL Labs, a creator of scalable systems to assess and address the social and emotional needs of children. This acquisition further solidifies 7 Mindsets as the most comprehensive social and emotional learning solution for schools and districts across the country and strengthens the company’s offering of high-quality, multi-tiered SEL instruction and assessment supporting teaching, learning, and student success.

“Today SEL is embedded into the work of school districts more than ever before and it’s critical we continue helping district administrators provide comprehensive social and emotional learning solutions for all members of their school communities,” said Mark Belles, CEO of 7 Mindsets. “The acquisition of xSEL Labs bolsters our high-quality assessment offerings and we’re thrilled to provide educators more insight into their students’ SEL skills as well as help them identify areas for improvement and inform the development of more targeted interventions.”

xSEL Labs’ core assessments directly measure students’ social and emotional learning strengths and needs. Assessment results help educators decide what to teach to whom, and measure student learning in response to instruction. xSEL Labs also offers brief climate surveys and educator surveys.

The combination of xSEL Labs, 7 Mindsets, and the recently acquired BASE Education, a social and emotional learning and mental health platform, will enable the company to offer a flexible and highly effective range of SEL assessment and instructional resources to address children’s social and emotional strengths and needs and achieve better outcomes for all students.

“This is an exciting milestone for xSEL Labs,” said company Founder and President Clark McKown. “We believe in 7 Mindsets’ vision for bringing together Tier I instruction, Tier II and Tier III intervention, and assessment. This is a combination that is greater than the sum of the parts, and I’m excited about what we can do together. Having 7 Mindsets, BASE, and xSEL Labs under one roof, we can offer fantastic assessment and instructional resources individually or together in ways that flexibly meet the needs of our district partners.”

7 Mindsets is a portfolio company of Gauge Capital. xSEL Labs marks the company’s third acquisition since Gauge’s investment in December 2021. In addition to its acquisition of BASE Education earlier this month, the company acquired the Better Together adult SEL program in August 2022.

To learn more about 7 Mindsets, visit www.7mindsets.com.

7 Mindsets
Founded in 2009, 7 Mindsets is a comprehensive social-emotional learning and mental health solution provider for schools and districts across the country, offering high-quality, multi-tiered SEL instruction that supports teaching, learning, and student success. The company’s flexible and highly effective programs have been shown to improve student engagement, behavior, and academic success, and have been used by over 5 million students and educators in all 50 states. Find out more at www.7mindsets.com.

About xSEL Labs
xSEL Labs partners with K-12 schools and districts across the country to assess and address social and emotional learning (SEL) outcomes. xSEL Labs’ core assessment, SELweb, is a reliable and easy-to-use direct assessment of the social and emotional competencies that are reflected in the CASEL framework, state standards, and evidence-based SEL programs. For more information, please visit www.xsel-labs.com

Source: 7 Mindsets

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

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Concorde Career Colleges on its Sale to Universal Technical Institute

Cherry Tree Advises Concorde Career Colleges on its Sale to Universal Technical Institute

Concorde Career Colleges

Cherry Tree Advises Concorde Career Colleges on its Sale to Universal Technical Institute

“Much thanks to Mike Buttry and the entire team at Cherry Tree. The Title IV post-secondary sector presents many hurdles to investment transactions. Without the expertise, discipline, diligence, and energy of the Cherry Tree team, we might never have completed the sale of Concorde to UTI. Great job!”

— Tim Foster, Chairman, Concorde Education

INDUSTRY:
Higher Education
DESCRIPTION:
Provider of blended, healthcare education programs serving 7,400+ students across 17 campuses in 8 states
LOCATION:
Mission, KS
TRANSACTION TYPE:
100% Sale to a Publicly Traded For-Profit, Higher Education Company

Transaction Overview

In May 2022, Concorde Career Colleges, a leading provider of healthcare education programs, announced it entered into a definitive agreement to be acquired by Universal Technical Institute, a leading provider of transportation and technical training programs, for $50 million. The transaction was completed in December 2022.

Founded in 1968 and based in Mission, KS, Concorde’s blended education model (online coursework with in-person labs classes and clinical experiences) offers diploma and degree programs across nursing, dental hygiene, and other direct patient care fields, as well as allied health including medical and dental assisting and healthcare administration. The Company serves approximately 7,400 students through its 17 campuses in 8 states and reported $180 million in revenue and $13 million in Adjusted EBITDA for calendar year 2021. The schools operated by Concorde Career Colleges are accredited by either the Accrediting Commission of Career Schools and Colleges (ACCSC) or the Council on Occupational Education (COE).
With the addition of the Concorde brand and its portfolio of programs and campuses, Universal Technical Institute will significantly expand upon its already announced growth and diversification plans. Upon completion of the Concorde acquisition, UTI will serve over 20,000 students across 14 states and 31 locations.

“Universal Technical Institute’s brands have a great reputation with both employers and students in transportation and skilled trades. Concorde Career Colleges has a strong reputation in healthcare education, making this an excellent combination for addressing the nation’s skills gap,” said Concorde CEO Jami Frazier. “I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country.”

“The acquisition of Concorde Career Colleges will be a significant next step in our previously announced growth and diversification strategy,” said Universal Technical Institute CEO Jerome Grant. “We take the responsibility of becoming one of this country’s leading workforce solutions providers seriously, and entering the healthcare space allows us to help even more students and support employers as they seek to solve some of their toughest workforce-related challenges.”

Cherry Tree’s Role

Cherry Tree was engaged to assist Concorde, its board of directors and shareholders in exploring a sale of the business. The Cherry Tree team leveraged its education experience and network of potential buyers to create a competitive sale process that resulted in a favorable outcome for the shareholders, employees, and its students. Cherry Tree’s customized process included introductions and discussions with numerous potential acquirers in marketing the opportunity, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction. And with our client being a regulated business from the U.S. Department of Education, navigating and advising smoothly through a complicated transaction was essential.

About Concorde Career Colleges:

Concorde Career Colleges operates 17 campuses across eight states under the brands Concorde Career College and Concorde Career Institute, focused on preparing America’s next generation of health care and dental professionals for rewarding careers. The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. Concorde Career Colleges’ 20 student-focused academic programs and personalized support prepare graduates for in-demand careers in nursing, dental, respiratory, diagnostic, and other health care roles. The schools operated by Concorde Career Colleges are accredited by either the Accrediting Commission of Career Schools and Colleges (ACCSC) or the Council on Occupational Education (COE). www.concorde.edu

About Universal Technical Institutes:

Founded in 1965 and headquartered in Phoenix, Universal Technical Institute’s (NYSE: UTI) mission is to serve our students, partners, and communities by providing quality education and support services for in-demand careers. Approximately 250,000 students have graduated from one of Universal Technical Institute’s 14 campuses located across Arizona, California, Florida, Illinois, Michigan, North Carolina, Pennsylvania, New Jersey, and Texas. Universal Technical Institute’s campuses are accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC), while its employer-aligned technical training programs are offered under four brands: Universal Technical Institute, Motorcycle Mechanics Institute / Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. www.uti.edu

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. For more information, please visit: www.cherrytree.com.

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

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Renodis in Acquisition of 12 Points Consulting

Cherry Tree Advises Renodis in Acquisition of 12 Points Consulting

Renodis

Cherry Tree Advises Renodis in Acquisition of 12 Points Consulting

“We are thrilled to welcome the 12 Points team and its clients to our company. This acquisition, along with the recent acquisition of The Eric Ryan Corporation, will strengthen our ability to offer a variety of services to our combined clients and prospects. Our priority is to ensure the resiliency of our clients’ connectivity, advise on the right technologies, and provide best-in-class managed solutions.”

— Craig Beason, CEO and Owner of Renodis​

INDUSTRY:
Telecommunications
DESCRIPTION:
Hospitality Telecommunications Equipment and Management
Services Provider
LOCATION:
Fargo, ND
TRANSACTION TYPE:
Strategic Advisor to Acquirer

Transaction Overview

Renodis is a leading telecommunications and mobility management services company based in Saint Paul, MN. In November 2022, Renodis acquired 12 Points Consulting. The Fargo-based company is a telecommunications company that primarily works in the hospitality industry. 12 Points Consulting provides hardware equipment and installation and manages the wireline services of several hotels located in the United States for some of the largest brand names in the hospitality industry. With this strategic acquisition, Renodis will enter the hospitality industry and will be able to leverage its resources to attract larger prospects and provide additional offerings to existing customers. This acquisition follows the acquisition of Eric Ryan Corporation which allows Renodis to cross-utilize resources in growing its management services and sourcing offerings across the hospitality and energy industries.

Cherry Tree’s Role:

Cherry Tree served as a buy-side M&A advisor to Renodis, helping the company identify numerous acquisition targets with offerings that align with the company’s growth strategy. 12 Points was a target identified during Cherry Tree’s prospect evaluation. Throughout the process, Cherry Tree assisted Renodis with financial modeling, due diligence, and negotiation of the purchase agreement.

About Renodis:

Renodis is a connectivity technologies consulting, sourcing, and managed services firm. We help enterprises accelerate their copper-to-cloud journey resulting in less frustration from managing legacy technologies and suppliers, better utilized IT talent, and improved support experience for their offices and people. All while client experience skyrockets and IT costs are reduced. A Saint Paul, Minnesota-based company since 2002, Renodis has helped hundreds of organizations with their connectivity technology transformations. Find out more at Renodis.com.

About 12 Points Consulting:

12 Points Consulting provides, services, and supports telecom equipment and provides telecom expense management services in the hospitality industry. Based in Fargo, North Dakota since 2013, 12 Points has become a one-stop-shop for all of their clients’ facility and hardware equipment support needs, including 24/7 support. Find out more at 12PointsConsulting.com.

About Cherry Tree:

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. For more information, please visit: www.cherrytree.com.

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

DISCLOSURES
FINRA
SIPC

Cherry Tree Advises Renodis in Acquisition of The Eric Ryan Corporation

Cherry Tree Advises Renodis in Acquisition of The Eric Ryan Corporation

Renodis

Cherry Tree Advises Renodis in Acquisition of The Eric Ryan Corporation

“We are excited to welcome the ERC team and its clients to our company. This is our fifth acquisition on our continued growth journey and will expand our brand along the East Coast. Renodis’ most important priority has always been ensuring the resiliency of our clients’ connectivity, advising on the right technologies, and providing best-in-class managed solutions.”

— Craig Beason, CEO and Owner of Renodis​

INDUSTRY:
Telecommunications
DESCRIPTION:
Utility and Telecommunications Management Services Provider
LOCATION:
Ellwood City, PA
TRANSACTION TYPE:
Strategic Advisor to Acquirer

Transaction Overview

Renodis is a leading telecommunications and mobility management services company based in Saint Paul, MN. In September 2022, Renodis acquired Eric Ryan Corporation (ERC), which is headquartered in Ellwood City, PA, 40 miles north of Pittsburgh. ERC is a provider of utility and telecommunication management services. Following the transaction, ERC will be an entity under the Renodis umbrella. This transaction expands Renodis’ footprint to the East Coast and adds utility management services as a new service offering.

Cherry Tree’s Role

Cherry Tree served as a buy-side M&A advisor to Renodis, helping the company identify numerous acquisition targets with offerings that align with the company’s growth strategy. Renodis was a target identified during Cherry Tree’s prospect evaluation. Throughout the process, Cherry Tree assisted Renodis with financial modeling, due diligence, and negotiation of the purchase agreement.

About Renodis

Renodis is a connectivity technologies consulting, sourcing, and managed services firm. We help enterprises accelerate their copper-to-cloud journey resulting in less frustration from managing legacy technologies and suppliers, better utilized IT talent, and improved support experience for their offices and people. All while client experience skyrockets and IT costs are reduced. A Saint Paul, Minnesota-based company since 2002, Renodis has helped hundreds of organizations with their connectivity technology transformations. Find out more at Renodis.com.

About Eric Ryan Corporation

The Eric Ryan Corporation (ERC) has been in operation since 1990 providing utility and telecommunications consulting and auditing services to over 11,500 customers throughout the US and Canada. Based near Pittsburgh, PA, the company has been a leader in the hospitality industry and one of the nation’s largest and well-recognized utility and telecommunication consulting and management firms. ERC specializes in cost reduction through bill analysis, utility bill consulting, telecommunications bill consulting, rate reviews, and energy management services including energy incentives, energy rebates, and energy efficiency grants. Their telecommunication services include 24/7 help desk, cellular optimization, telecom services pricing, network design, circuit monitoring, security, and new construction management. ERC has provided cost-savings solutions for thousands of businesses in the educational, governmental, hospitality, commercial, retail, health care, non-profit, and industry sectors of the marketplace. Find out more at EricRyan.com.

About Cherry Tree

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. For more information, please visit: www.cherrytree.com.

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

DISCLOSURES
FINRA
SIPC