Featuring M&A news from Lakeview Equity Partners, Delta and Northwest air lines, and Tomo Therapy
Milwaukee private equity group invests in Chicago company
Lakeview Equity Partners LLC, a Milwaukee-based private equity fund, has purchased a majority interest in Travel Technology Group, a Chicago-based travel coordinator for large events. Financial terms of the acquisition, which closed Thursday night, were not disclosed. "Travel Tech is an attractive company because of its profitability and growth potential, but also because of the resoundingly positive feedback we received from its stakeholders, both internal and external," said W. Kent Velde, president of Lakeview Equity Partners.
The founders and co-owners of Travel Technology Group will retain a minority equity interest in the company. The company’s senior management will be retained and will manage day-to-day operations while working with Lakeview Equity Partners to devise future growth strategies.
Travel Technology Group provides event organizers and their customers with full-service housing and travel solutions, using award-winning technology. For example, the company has been named the official housing bureau of the upcoming Republican National Convention in the Twin Cities and is charged with managing the convention’s hotel block and coordinating a paperless, online reservation system.
"This new partnership allows us to expand our business and invest more in our people, while remaining true to the clients who have paved the way for our current success," said Bob Derham, managing director of Travel Tech. "Considering the investment criteria of Lakeview Equity Partners, this strategic partnership is a confirmation of Travel Tech’s dedication to the industry, our clients and our clients’ customers."
Travel Technology Group is the fifth investment made by Lakeview Equity Partners. The company’s portfolio includes 5 Alarm Fire and Safety Equipment of Fort Atkinson; Automatän, based in Plover; Firehouse Animal Health Centers in Denver, Colo.; and LS Research, based in Cedarburg.
Delta and Northwest moving ahead on merger
As expected, Delta Air Lines Inc. and Northwest Airlines Corp. recently announced they have agreed to a $17.7 billion merger deal, creating the world’s second-largest carrier. The combined airline, which is to be called Delta, would have more than $10 billion in assets, placing it second to Air-France KLM. The new Delta "will provide employees with greater job security, an equity stake in the combined airline, and a more stable platform for future growth in the face of significant economic pressures," the companies said in a joint statement.
Under terms of the deal, Northwest shareholders would receive 1.25 Delta shares for each share they own. The combined company would be headquartered in Atlanta and led by current Delta chief executive officer Richard Anderson. Seven members of the new board will come from Delta and five will come from Northwest, the companies said. Northwest, which is based in Eagan, Minn., owns a minority stake in Midwest Air Group Inc., the Oak Creek-based parent company of Midwest Airlines.
However, the Delta and Northwest alliance will still need to pass regulatory hurdles to become a reality. Several Minnesota politicians, including U.S. Sen. Norm Coleman and Gov. Tim Pawlenty, both Republicans, have expressed opposition, as has U.S. Rep. Jim Oberstar, (D-Minn.), head of the House Transportation and Infrastructure Committee.
Tomo Therapy to acquire Chinese manufacturer
Madison-based Tomo Therapy Inc. a manufacturer of radiation therapy equipment, will acquire Chengdu Twin Peak Accelerator Technology Inc., a privately held linear accelerator manufacturer based in Chengdu, China. The linear accelerators designed, developed and manufactured by Twin Peak will be used to supplement TomoTherapy’s existing supply source. The financial terms of the transaction were not disclosed. TomoTherapy anticipates that the transaction will close in approximately 90 days.
