The trend of health care consolidation continued last year as Milwaukee-based Froedtert Health and Neenah-based ThedaCare agreed to merge their two health systems. The combined entity, known as Froedtert ThedaCare Health Inc., launched Jan. 1. Froedtert president and CEO Cathy Jacobson will lead the organization for the first six months before retiring, at which point Dr. Imran Andrabi, president and CEO of ThedaCare, will take over. Jud Snyder, regional president – Midwest for BMO Wealth Management, is board chair of Froedtert ThedaCare Health and Jim Kotek, retired president and CEO of Menasha Corp., is vice chair.
Froedtert also acquired sole ownership in Menasha-based Network Health from Ascension Wisconsin. The two health systems previously each had 50% ownership of the providers of commercial and Medicare health insurance plans.
In another health care-related deal, Milwaukee-based Physicians Realty Trust, a real estate investment trust that invested in medical facilities, merged with Denver-based Healthpeak Properties. The all-stock deal was described as a “merger of equals” and valued the combined entity at $21 billion. Healthpeak shareholders ended up with 77% ownership of the combined company, which kept the Healthpeak name but the Physicians Realty Trust stock ticker “DOC.” The companies also said they would keep an office in Milwaukee.
BizTimes Milwaukee regularly covers M&A deals at biztimes.com. Here’s a look at other notable local transactions from the past year with terms provided if available:
- In May, Minnesota-based nVent Electric completed its $1.1 billion acquisition of New Berlin-based ECM Industries, a manufacturer of electrical products for the construction, maintenance, irrigation and landscape supply, and utility markets.
- Massachusetts-based Watts Water Technologies Inc., a manufacturer of plumbing, heating and water quality products, acquired Menomonee Falls-based Bradley Corp. for $303 million.
- Molson Coors Beverage Co. acquired a 75% equity interest in Kentucky-based bourbon and rye whiskey producer Blue Run, for $77 million.
- Kohler Co. announced plans to spin off its energy business as a separate, independent company with California-based Platinum Equity as the majority investment partner. The deal is expected to close in the first half of 2024. Kohler also announced plans to acquire German sauna maker KLAFS from its parent company, the Egeria Group, and acquired United Kingdom-based Kast Concrete Basins.
- Johnson Controls International acquired FM:Systems, a digital workplace management and Internet of Things provider for facilities and real estate professionals for $540 million.
- Mayville Engineering Co., which moved its headquarters to Milwaukee from its namesake city, acquired Fond du Lac-based Mid-States Aluminum in July for nearly $96 million.
- Milwaukee-based Rockwell Automation paid $565 million with up to a $50 million contingent consideration to acquire Clearpath Robotics, a Canadian company specializing in autonomous robotics for industrial applications. Rockwell also acquired Verve Industrial Protection, a Chicago-based cybersecurity firm, for $185 million.
- Milwaukee-based A.O. Smith acquired Water Tec of Tucson for almost $17 million in September and then announced the acquisition of Impact Water Solutions this month. Terms of the Impact deal were not disclosed. Since 2016, the company has spent at least $266 million on seven acquisitions for its water treatment business.
- Hartland-based Fathom Digital Manufacturing accepted a proposal from Chicago-based CORE Industrial Partners that will allow CORE to purchase all outstanding shares of Fathom’s class A and class B common stock. CORE, which already owns 62.8% of the stock, initially offered $4.50 a share in November and now plans to pay $4.75 per share. The deal does need shareholder approvals.
- In December, Milwaukee-based sheet music publishing company Hal Leonard “combined” with Cyprus-based music content and creation company Muse Group. Terms of the deal were not disclosed. San Francisco-based investment firm Francisco Partners provided growth investment for the deal.
- Boston-based Exaltare Capital Management, a private investment firm with a focus on franchise and multi-unit investments, acquired Milwaukee-based GF Midwest Inc., one of the largest developers and operators of the Good Feet Store, operating 23 franchises across nine states.
- Sheboygan County-based Johnsonville will shutter its Meadowside facility, located on the company’s headquarters campus, later this year following its acquisition of Denmark, Wisconsin-based Salm Partners, a manufacturer of fully cooked sausage and hot dogs.
- Milwaukee-based private equity firm Generation Growth Capital acquired three Midwestern manufacturers as part of the launch of its newly formed metal manufacturing platform, called American Consolidated Metals. The companies were West Bend-based Federal Tool & Engineering, Minnesota-based BP Metals and Illinois-based Rockford Specialties.
- Union Grove-based American Roller Co. acquired Lake Forest, Illinois-based manufacturer PETCO Inc. and moved its operations, and approximately 25 employees, to the American Roller facilities in Union Grove. It was American Roller’s third acquisition in 12 months.
- Milwaukee-based Plunkett Raysich Architects acquired Texas-based dental office design consulting firm Practice Design Group. The two firms had strategic partnership for more than 12 years and have completed 30 projects in 12 states together.
- Mike and Chris Wood acquired full ownership of Muskego-based remodeling company Callen Construction Inc. after co-founder Phil Callen retired. Phil and has brother Tom Callen founded the company in 1986. Tom retired in 2013.
- Sussex IM, a custom molder and contract manufacturer, sold its Mr. Lid brand of storage containers to Las Vegas-based MLNV, a marketing agency. Sussex IM was to continue manufacturing Mr. Lid products with MLNV focusing on marketing efforts.
- Milwaukee-based manufacturer Regal Rexnord Corp. agreed to sell its Industrial Motors and Generators businesses to Brazil-based WEG, a producer of electric motors, generators, transformers, drives and coatings, for $400 million. The deal is expected to close in the first half of 2024.
- Ontario, Canada-based ATS Corp., a provider of automation solutions, acquired Waterford-based Avidity Science, a designer and manufacturer of automated water purification solutions for the biomedical and life sciences industries for $195 million.
