M&A activity in the state of Florida has been surging recently. Over the past three months (October through December 2016) 118 deals involving Florida-based target companies have been announced or closed. The acquisitions have encompassed a variety of industries from healthcare and technology to hospitality and manufacturing,
With the new administration set to take office in January, many in the M&A community are hopeful that deals will continue to close at an increased rate. Below is a summary of a few of the prominent middle market M&A transactions in the state of Florida over the last three months:
September 2016– Red Lion Hotels Corp. acquired Coral Springs, Florida based Vantage Hospitality Group, Inc. for US$41.2 million in cash, stock and contingent payout. Under the terms of transaction, Red Lion Hotels would pay US$23 million in cash and would issue 690,000 shares. In addition, US$7 million and another 690,000 shares would be paid if certain performance metrics would be achieved on the first and second anniversaries of the transaction. The brands and operations include Vantage Hotels; Americas Best Value Inn; Canada’s Best Value Inn; Lexington by Vantage; America’s Best Inns and Suites; Country Hearth Inns; Jameson Inns; Signature Inn; and 3 Palms Hotels & Resorts.
September 2016– Comfort Holdings, Inc., a subsidiary of Hill Rom Holdings, Inc., acquired Coral Springs, Florida based Anodyne Medical Device, Inc., also known as Tridien Medical, and a portfolio company of Compass Group Management LLC and Hollywood Capita, Inc. for US$25 million. Comfort Holdings, Inc. operates as an investment holding company. Anodyne Medical Device designs and manufactures medical therapeutic support surfaces and patient positioning devices. It offers powered and non-powered therapeutic surfaces, including electronically-controlled alternating pressure, low air loss, and lateral rotation specialty support surfaces for bed-and chair-bound patients, hospital needed medical laminated foam mattresses, and sleeping, seating, and patient positioning surfaces.
October 2016– Davenport, Florida based CenterState Banks, Inc. entered into an agreement and plan of merger to acquire Brandon, Florida based Platinum Bank Holding Co for US$83.1 million in cash and stock. Under the terms of the agreement, CenterState Banks will issue US$7.6 per share in cash and 3.7832 shares per every outstanding share of Platinum Bank Holding Co. The acquisition complements CenterState Bank’s existing footprint with five out of seven Platinum Bank branches. CenterState Banks, operates as a bank holding company. It operates through two divisions: Commercial and Retail Banking, and Correspondent Banking and Bond Sales. Platinum Bank Holding Co. provides banking services.
October 2016– Central Garden & Pet Co acquired Segrest, Inc., trading as Segrest Farms, a portfolio company of Meriwether Capital LLC, for US$60 million in cash. The acquisition allows Central Garden & Pet Co to strengthen its aquatics category and its portfolio of business. Segrest is located in Gibsonton, Florida, and wholesales and distributes tropical, marine and aquarium fish. Central Garden & Pet Co. produces and markets products for the lawn, garden and pet supplies markets.
November 2016– ARI Network Services, Inc. acquired Weston, Florida based Auction123, Inc. for US$12 million in cash and contingent payout with an undisclosed amount in assumed liabilities. Under the terms of the transaction, ARI Network Services would pay US$10.5 million in cash and US$1.5 million in contingent payout based on Auction123’s revenue. ARI Network Services, Inc. is a company which provides technology enabled solutions that helps dealers, distributors and manufacturers worldwide increase revenue and reduce costs. Auction123 provides website development, inventory management and online marketing solutions.