Cherry Tree Advises Hearing Components (d.b.a ComplyFoam)

Cherry Tree Advises Hearing Components (d.b.a ComplyFoam)

Hearing Components

Cherry Tree Advises Hearing Components (d/b/a ComplyFoam)

INDUSTRY:
Consumer and Industrial Products
DESCRIPTION:
Leading manufacturer and distributor of audio enhancement and hearing products
LOCATION:
Oakdale, Minnesota
TRANSACTION TYPE:
100% Management Buyout

Situation:

In July 2023, the owners of Hearing Components (doing business as Comply) sold the company to CEO Chris Hudson and an investor group. Hearing Components was owned and founded by Robert and Dee Oliviera, who originally purchased the intellectual property from 3M in 1990.

Cherry Tree’s Role:

Cherry Tree was engaged to help the owners evaluate their strategic alternatives, which included seeking parties that would maximize the proceeds for a foundation they started, while also protecting the culture of the Company, supporting growth initiatives, and continuing to provide excellent products to its customers. Cherry Tree advised the Company through a process that included introductions and discussions with numerous potential industry and financial acquirers, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction by ultimately striking a deal with the management team and an investor group they formed. Chris Hudson’s experience and vision for the future of the business as well as his shared value and commitment to all stakeholders, made him the ideal steward for the Company.

About:

Hearing Components: Founded in 1990, Hearing Components is a leading manufacturer and distributor of patented and proprietary audio enhancement and hearing health products designed for performance and comfort. The products are highly-rated and compatible with over 95% of consumer brands while its high-noise products have been trusted by military forces for over 20+ years. The Company distributes globally.

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 InHarvest on its Sale to Riviana Foods

Cherry Tree Advises InHarvest on its Sale to Riviana Foods

InHarvest

Cherry Tree Advises InHarvest, a Duininck Company, on its Sale to Riviana Foods

“We engaged Cherry Tree after being approached by a strategic buyer who expressed interest in acquiring InHarvest, a Duininck Company. Cherry Tree had served as our advisors several years ago on an acquisition for InHarvest.
 
The Cherry Tree team led the efforts to negotiate a Letter of Intent with Riviana, coordinated and managed the due diligence process and managed the overall process of negotiating and completing the necessary legal agreements for closing the sale of InHarvest and the related real estate.
 
Cherry Tree’s experience and involvement in managing and driving the process through closing resulted in a great outcome for the shareholders of InHarvest.”

—Trevor Duininck, CEO Duininck Companies

INDUSTRY:
Food Manufacturer, Consumer
DESCRIPTION:
Producer and procurer of premium specialty rice, quinoa, and grains for the foodservice, industrial, and retail sectors
LOCATION:
Colusa, CA & Woodland, CA
TRANSACTION TYPE:
Sale to Riviana Foods Inc., a wholly-owned subsidiary of Ebro Foods, S.A. (BME:EBRO)

Transaction Overview

Riviana Foods, North America’s largest processor, marketer and distributer of branded and private label rice products, acquired the assets of InHarvest, a leading producer of premium specialty rice, quinoa and grains for the foodservice, industrial, and retail sectors, for $48.75 million.

The acquisition expands Riviana’s operations and geographic footprint into California and includes two production facilities in Colusa and Woodland strategically located in the rice-growing area of the Western United States. In addition, with InHarvest’s focus on the foodservice, ingredients/industrial and retail/private label sectors, the purchase complements and enhances Riviana’s current business in those segments.

“The acquisition of the InHarvest business is an excellent fit and consistent with our strategic plan to expand our position in the specialty value-added rice, quinoa and grains markets,” said Enrique Zaragoza, President & CEO of Riviana. “We are excited about this expansion as we also look forward to welcoming InHarvest’s employees to the Riviana team.”

Cherry Tree’s Role:

Cherry Tree was engaged to advise InHarvest and its shareholders as they considered an unsolicited bid from a strategic party seeking to acquire the business. The objectives were to maximize shareholder value and terms of a transaction, while managing an efficient closing process. The Cherry Tree team advised the shareholders throughout the entire process, which included soliciting the LOI bid and negotiating terms, supporting the Company in the confirmatory due diligence process, negotiating terms of the purchase agreement and managing the overall process of closing the transaction.

About InHarvest, Inc.:

With two facilities in California, InHarvest is the foremost U.S. producer and procurer of some of the world’s most distinctive varieties of grains, beans, legumes and blends for the foodservice, industrial and retail sectors. The company’s dedication to discovering and promoting lesser-known, heirloom grains and seeds is deep-rooted in its over 40-year heritage of providing inspiration and solutions to an evolving food industry. For more information, visit www.InHarvest.com.
 

About Riviana Foods Inc.:

Riviana Foods Inc. is North America’s largest processor, marketer and distributor of branded and private label rice products through its family of well-known brands including Minute®, Mahatma®, Success®, Carolina®, Comet®, Adolphus®, Blue Ribbon®, RiceSelect®, Gourmet House® and Tilda®. Riviana also processes, markets and distributes fresh pasta through the brand Olivieri®. Headquartered in Houston, Texas, Riviana is a wholly-owned subsidiary of Ebro Foods, S.A., a leading Spanish food company and the world leader in the rice sector. For more information, visit www.riviana.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 attractive, entrepreneurially managed growth companies, provides strategic advisory services to 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

Lectric/Bertram

Lectric/Bertram

Lectric eBikes

Cherry Tree Advises Lectric eBikes on an Investment by Bertram Capital

INDUSTRY:
Consumer​
DESCRIPTION:
Rapidly Growing Provider of eBikes
LOCATION:
Phoenix, Arizona
TRANSACTION TYPE:
Recapitalization and Growth Capital

Overview:

In December of 2020, Lectric eBikes, one of the largest and fastest growing designers and direct-to-consumer retailers of electric and pedal-assist bicycles, announced that it had received an investment from Bertram Capital, a growth equity investor specializing in backing high growth consumer products companies. The rationale for the investment is to capitalize on the company’s rapid growth and strong demand, and to invest in inventory, marketing, and Lectric’s ecommerce platform.
 
Cherry Tree was engaged to help the founders identify the best partner to support the company’s rapid growth and consummate a recapitalization with a growth capital investment. The Cherry Tree team advised the founders in a process that included effectively communicating this compelling investment opportunity to potential investors, engaging with a wide range of qualified parties, soliciting term sheets and negotiating attractive terms, and supporting the company in working through the diligence process and finalizing the definitive agreements.
 
Levi Conlow and Robby Deziel, Lectric co-founders, stated, “With this investment from Bertram Capital, we are thrilled to have a partner who is a leader in the ecommerce sector and brings the resources to help us achieve our vision of building great bikes for millions of people at accessible prices, while maintaining industry leading customer service.”

Lectric was advised by Cherry Tree & Associates, LLC, due to its specialization in serving high growth consumer products companies. Taft, Stettinius, and Hollister LLP served as Lectric’s legal counsel.

About Lectric eBikes

Lectric eBikes: Lectric is the among the largest and fastest growing e-bike brands in the United States. Lectric’s bikes feature functional designs, brand name components, and a growing complement of accessories. The XP, Lectric’s flagship model, has been widely praised as the best e-bike under $1,000. The Company sells all of its bike models directly through its website, and customer questions and feedback are addressed by a knowledgeable US-based customer service team. Lectric was founded in 2018 by Robby Deziel and Levi Conlow, and is based in Phoenix, Arizona.  For more information, visit the Company’s website at www.lectricebikes.com.

About Bertram Capital

Bertram Capital: Bertram is a private equity firm targeting investments in lower middle market companies. Since its inception in 2006, the firm has raised over $1.7B of capital commitments. In addition to supplying strategic growth capital, Bertram Capital leverages proprietary processes and services, Bertram High-5 and Bertram Labs, to empower its portfolio companies to unlock their full business potential. The Bertram High-5℠ is an operationally-focused value creation strategy, which includes management augmentation, operational initiative implementation, complementary business acquisition, sales and marketing improvements, and leveraging technology and IP. The cornerstone of this strategy is Bertram Labs, its in-house technology team, which drives growth and value through digital marketing, e-commerce, big data and analytics, application development, and internal and external platform optimization. Visit www.bcap.com for more information.

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 attractive, entrepreneurially managed growth companies, provides strategic advisory services to 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 Victory Fireworks on its Sale to Winco Fireworks

Cherry Tree Advises Victory Fireworks on its Sale to Winco Fireworks

Victory Fireworks

Cherry Tree Advises Victory Fireworks on their Sale to Winco Fireworks

“Selling ‘our first born’ was not an easy decision. Once we made that decision the real work began, not only to find a firm to represent us but for them to recognize the value in our company. After 18 months, we found the firm and more importantly, the right team to make the sale. We knew all the potential buyers prior to engaging Cherry Tree. We partnered with Cherry Tree to create a competitive situation amongst a small group of potential buyers and to run a disciplined process while managing all the moving pieces of the transaction. Cherry Tree’s experience and involvement in every aspect of the process, were key to us completing a transaction that had a great outcome for our family, employees, and customers. Cherry Tree and our engagement team are highly recommended.” 

Wayne and Jackie Schulte, Owners, Victory Fireworks

 

 

INDUSTRIES:
Consumer
DESCRIPTION:  
Wholesaler and Retailer of Consumer Fireworks
LOCATION: 
Ellsworth, WI
TRANSACTION TYPE:
100% Sale to Strategic Buyer

Transaction:

Winco Fireworks has announced that it has acquired the Victory Fireworks business from Wayne and Jackie Schulte. Victory Fireworks, founded in 1985, is a wholesaler and retailer of consumer fireworks, including some of the top items from the major brands, while also being the exclusive importer of their proprietary brand of Pyro King fireworks. Victory is headquartered in Ellsworth, Wisconsin and has grown to include 18 retail stores and 8 warehouses. Winco Fireworks has acquired the wholesale and retail business, including the related real estate, facilities and inventory in both Wisconsin and Washington. The Schultes will continue to own and operate the Victory Fireworks retail stores in Danbury and Siren, Wisconsin.

Winco Fireworks is an industry leading wholesaler and retailer of consumer fireworks. Winco has built a brand over the past 40 years based on quality products and customer loyalty. Prior to the transaction with Victory, Winco and its affiliates operate seven distribution centers and 33 brick and mortar retail stores, in 18 states. Winco Fireworks employs approximately 225 full time employees and over 2000 seasonal employees. Its corporate office is in Grandview, MO.

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 to CEOs and boards of directors, and prepares fairness opinions and other valuation services. For more information, visit Cherry Tree & Associates.

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

DISCLOSURES
FINRA
SIPC

OurFamilyWizard

OurFamilyWizard

OurFamilyWizard

Cherry Tree Advises OurFamilyWizard on an Investment by Spectrum Equity.

INDUSTRY:
Consumer Software-as-a-Service
DESCRIPTION:
Provider of Software-as-a-Service Co-Parenting Applications
LOCATION:
Minneapolis, Minnesota

Situation:

In March 2020, the owners of OurFamilyWizard (“OFW”), the leading provider of SaaS-based co-parenting applications, welcomed as an equity partner Spectrum Equity. OFW was founded in 2001 and developed the industry leading co-parenting app, for a market that had little to no modern software solutions. The company experienced rapid adoption and growth as they worked with family law professionals and court systems that saw the need for co-parenting tools to help their clients through one of the most stressful situations in their lives.

The investment by Spectrum Equity will help OFW in continuing their mission to improve communication and reduce conflict in families after divorce or separation. Spectrum is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. Some of Spectrum’s current portfolio companies include SurveyMonkey, Headspace, The Knot Worldwide, and Ancestry.

Cherry Tree’s Personalized Solution:

Cherry Tree provided advice to the OFW management and its Board over many years, as they evaluated inbound interest and considered when would be the right time to bring in an experienced investor to support the company’s continued growth, while providing some liquidity for their original investors. Cherry Tree guided OurFamilyWizard through discussions with and evaluations by numerous parties, including a competitive process that resulted in a relationship with Spectrum Equity. Cherry Tree’s customized services 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.

Outcome

OFW’s strong financial performance, user engagement, and market leading position piqued the interest of numerous financial partners. OFW ultimately decided to proceed with Spectrum Equity as a partner due to their experience in supporting high growth consumer software solutions and their commitment to building high quality, long-lasting businesses.

About OurFamilyWizard

OurFamilyWizard: Headquartered in Minneapolis, MN, OFW invented the concept of a co-parenting application. Its website, iOS and Android applications have been used by nearly one million people since the company was founded in 2001. The platform allows parents to communicate, share calendars and journals, track expenses and transmit payments. OFW is recommended by family law attorneys, mental health practitioners and courts in all 50 states, Canada, the United Kingdom, Australia and New Zealand.

About Spectrum Equity

Spectrum Equity: Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with proven entrepreneurs and management teams to build long-term value in market-leading software, information services and Internet companies. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, GoodRx, Grubhub, Headspace, Lynda.com, SurveyMonkey, The Knot Worldwide and Verafin. For more information, including a complete list of portfolio investments, visit www.spectrumequity.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 attractive, entrepreneurially managed growth companies, provides strategic advisory services to 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