Cherry Tree Advises Swanson Flo on its Sale to Motion & Control Enterprises
“The Cherry Tree team provided the advice and counsel we needed prior to the execution of the Letter of Intent and during the process to close the transaction. Cherry Tree’s experience in managing and driving the process through closing, and being involved in all of the details throughout the process, were keys to our successful transaction. The result was a great outcome for our family, employees and customers.”
— Tom Howe, CEO and Owner, Swanson Flo
Industrial – Value-added Distribution
Distributor of Process Instrumentation, Flow Control Values, and Related Equipment
Sale to Strategic Buyer
With its second acquisition in the last month, Motion & Control Enterprises (“MCE”) announced on Feb. 4th that it has acquired Swanson Flo, Co. (“Swanson Flo”), a regional distributor of process instrumentation, flow control valves, actuators, and related equipment. Swanson Flo also provides critical value-added services including actuated valve assemblies, field services and shop repairs.
Based in Plymouth, MN, Swanson Flo employs 92 associates, servicing industrial and municipal markets in 13 states in the upper Midwest and beyond. The company has 4 warehouse locations in Plymouth, MN; Milwaukee, WI; Chicago, IL and Indianapolis, IN. As a division of MCE, Swanson Flo will continue to operate under the Swanson Flo name with the same leadership team, employees, and suppliers.
“The addition of Swanson Flo extends our highly-engineered, technical solutions by providing leading flow control products and services”, said Charles Hale, Chairman & CEO of MCE. “Swanson Flo brings longstanding customer relationships and supplier partnerships, plus a highly regarded team of flow control experts. We welcome the Swanson Flo team to MCE and are looking forward to accelerated growth and continuing to bring innovative solutions to our customers.”
“The Swanson Flo team is excited to join with MCE”, said Tom Howe, CEO, and majority owner of Swanson Flo. “Our teams share a similar philosophy of providing the customer with a wide range of technical products, services and solutions. Together, we will be even better positioned to meet the ever-increasing needs of our customers and principals. With Swanson Flo’s leadership, locations and team members remaining intact, we look forward to a seamless transition.”
Cherry Tree’s Role:
Cherry Tree was engaged by Swanson Flo to advise the company on its strategic alternatives related to the sale of the company. Cherry Tree led the process of negotiating and finalizing the Letter of Intent, negotiating terms of the purchase agreement, supporting the due diligence process, and facilitating the closing of the transaction.
“The Cherry Tree team provided the advice and counsel we needed prior to the execution of the Letter of Intent and during the process to close the transaction. Cherry Tree’s experience in managing and driving the process through closing, and being involved in all of the details throughout the process, were keys to our successful transaction. The result was a great outcome for our family, employees and customers.” — Tom Howe, CEO and Owner, Swanson Flo
About Swanson Flo
Founded in 1960, Swanson Flo provides innovative process and flow control solutions through quality equipment, experienced application expertise and a full suite of lifecycle services. For more information, please visit www.swansonflo.com.
About Motion & Control Enterprises
Founded in 1951, MCE is a leading supplier of technical fluid power and lubrication solutions that solve customer problems across fluid connector, hydraulic, pneumatic, filtration, compressed air and lubrication technologies. The company services more than 15,000 MRO and OEM customers from 9 distribution centers and 16 retail locations across PA, MI, IN, IL, OH and WI. For more information, please visit www.mceautomation.com.
MCE is majority owned by Frontenac, a Chicago-based private equity firm that invests in middle market buyout transactions in the consumer, industrial and services markets. For more information, please visit www.frontenac.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.