INDUSTRY:
Industrial – Value-added Distributor

DESCRIPTION: 
Supplier of industrial adhesives and dispensing equipment

HQ LOCATION: 
Minneapolis, MN

TRANSACTION TYPE:
Sale to PE-Backed Strategic Buyer

Transaction:

APPLIED Adhesives, a premier custom adhesive solutions provider in North America, today announced that it has completed its acquisition of Heigl Adhesives. Based in Eden Prairie, MN, Heigl has over 30 years of adhesive and adhesive dispensing equipment experience across a broad range of industries. The acquisition strengthens APPLIED’s commitment to providing industry-leading products, technical expertise, and relentless service to its customers.

“We are excited to expand APPLIED’s offerings through the acquisition of Heigl Adhesives as we share the same dedication to providing outstanding service, innovative solutions, and the highest quality products to our customers,” said John Feriancek, President and CEO of Applied Adhesives. “We are pleased to welcome the Heigl team and its customers to APPLIED Adhesives and look forward to continuing to deliver industry-leading custom adhesive solutions.”

“I couldn’t be more excited about Heigl joining the APPLIED team. We looked hard at the core values and culture of both companies and it’s a great fit on so many levels,” said Dustin Heigl, CEO, Heigl Adhesives. “Coming together with APPLIED is going to give us even more resources to support all of our valued customers, which will always be our highest priority.”

Source: appliedadhesives.com

Cherry Tree’s Role

Cherry Tree was engaged by Heigl Adhesives 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 coordinating the closing of the transaction.

“Cherry Tree played a key role leading our team through the successful sale to Applied Adhesives. Their guidance and support helped minimize disruption to the business during this process and facilitated an efficient closing.”

— Mark Heigl, Co-Owner, Heigl Adhesives

About Heigl Adhesives

Heigl Adhesives is a leading supplier of industrial adhesives and dispensing equipment based in Minneapolis, Minnesota. The company has been in business for over 30 years and has long-standing relationships with top adhesive and equipment manufacturers. Heigl uses its decades of adhesive expertise and strong industry partnerships to help manufacturing companies of all sizes find the right adhesive solutions for their needs, keep costs low, and keep production running smoothly.

About APPLIED Adhesives

APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider in North America. Our experts source the adhesives, equipment, and parts you need while providing maintenance services that help you run at optimum efficiency. APPLIED offers customized solutions with a cost-in-use approach that saves you time and money.

About Arsenal Capital Partners:

Arsenal is a specialized private equity firm with what it believes are market-leading franchises in the industrials and healthcare sectors. The firm’s mission is to build high-growth, technology- and innovation-rich businesses that are strategically important in their markets and deliver value for all stakeholders.

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.

INDUSTRY:
Industrial supplier to the automotive, aerospace, computer, electronic, networking and security sectors

DESCRIPTION:
Manufacturer of custom wire harness and cable assemblies

Transaction

INDUSTRY:
Industrial – Building Products

DESCRIPTION:
Designer and Manufacturer of Precision Wood Products

Transaction

US LBM, a leading distributor of specialty building materials in the United States, has acquired Villaume Industries, a manufacturer of wood trusses for new residential and commercial construction and of custom wood crating, boxes and pallets in Minnesota. 

Based just outside of Saint Paul in Eagan, Minnesota, Villaume is a leading designer and manufacturer of precision wood products. The company, founded in 1882, provides floor and roof trusses for national, regional and local homebuilders in the Twin Cities metropolitan area and across Minnesota. Additionally, Villaume engineers and manufactures custom wood packaging of pallets, crates and cores for manufacturing companies.

With the addition of Villaume, US LBM now operates 21 locations in Minnesota through its network of divisions in the state, which include Lampert Lumber, NexGen and Lyman Companies; Villaume will operate as a unit of Lyman.

“Villaume has a reputation for both excellence and partnership, and we’re pleased to have them join the US LBM team,” said US LBM President and CEO L.T. Gibson. “Villaume’s capabilities and footprint complement Lyman and its addition to our portfolio enhances our already strong position in the growing Twin Cities market and beyond.”

Cherry Tree’s Role

Cherry Tree was engaged by Villaume Industries to advise the company on its strategic alternatives related to the sale of the company. Cherry Tree led the process that included introductions and discussions with numerous potential acquirers and financial partners, soliciting proposals, negotiating terms, supporting the due diligence process, and facilitating the closing of the transaction.

“The Cherry Tree team led a disciplined and competitive process and provided the advice and counsel we needed both leading up to the sale process and during the sale process.  Their professional guidance, sound and respectful counsel and calming tone were instrumental in us completing a successful transaction.  The result was a great outcome for our family, employees and customers.” – – J Nicholas Linsmayer, President and fourth generation Owner, Villaume Industries, Inc.

About Villaume Industries, Inc.

Based just outside of Saint Paul in Eagan, Minnesota, Villaume is a leading designer and manufacturer of precision wood products. The company, founded in 1882, provides floor and roof trusses for national, regional and local homebuilders in the Twin Cities metropolitan area and across Minnesota. Additionally, Villaume engineers and manufactures custom wood packaging of pallets, crates and cores for manufacturing companies.

About US LBM

US LBM is a leading distributor of specialty building materials in the United States. Offering a comprehensive portfolio of specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components and cabinetry, US LBM combines the scale and operational advantages of a national platform with a local go-to-market strategy through its national network of locations across the country. For more information, please visit www.uslbm.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.

INDUSTRY:
Industrial – Value-added Distribution

DESCRIPTION:
Distributor of Process Instrumentation, Flow Control Values, and Related Equipment

Transaction

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.