Wausau acquires Nebraska firm
Wausau, the Mosinee-based company previously known as Wausau Financial Systems Inc., announced it has acquired the assets of DMP Payment Systems (Data Management Products, Inc.) from First National of Nebraska Inc. (FNNI).
DMP is a leader in image-based processing systems, providing automated solutions for payment and return/exception item processing, with particular strength in the wholesale lockbox solutions market.
The combination establishes the industry’s top end-to-end lockbox solution provider, uniting Wausau’s market-leading share of retail lockbox and ACH solutions with DMP’s top position in the wholesale lockbox market.
“This deal combines the number one retail provider with the number one wholesale provider for an unparalleled position in the lockbox solutions market,” said Joe Delgadillo, president and chief executive officer of Wausau. “By uniting two industry leaders, customers of both companies will benefit from our expanded capabilities across the payments market space.”
Together, Wausau and DMP solutions process more than one-third of the industry’s retail and wholesale payments, which, market-wide, are estimated at nearly 9 billion annual retail lockbox transactions and roughly 450 million business-to-business wholesale payments.
“The combination of Wausau and DMP unites the best of breed lockbox solutions in the market today,” said Jim Mills, president of DMP. “Our products and talented personnel will work together to create outstanding synergies that will benefit both organizations.”
DMP, with a staff of 60, will retain its operations in Omaha, Neb., and Mills will continue to lead the
DMP organization.
Wausau is owned by Frontenac Corp., a blue-chip private equity firm in Chicago, Ill. Founded in 1971, Frontenac has more than $1 billion under management in a broad range of mid-sized companies in the services and manufacturing sectors.
M&I completes Florida acquisition
Marshall & Ilsley Corp., the Milwaukee-based parent company of M&I Bank, announced it has completed its previously announced acquisition of United Heritage Bankshares of Florida Inc.
The parent company of United Heritage Bank had $751 million in assets as of Dec. 31, 2006, and has 13 branches in the metropolitan Orlando area.
United Heritage shareholders will receive 0.8740 of a share of M&I common stock for each share of United Heritage common stock.
Toshiba acquires majority share of ReGENco
Toshiba International Corp. (TIC), the wholly owned U.S. subsidiary of Toshiba Corp. of Japan, has acquired a majority ownership interest in ReGENco LLC of West Allis.
With the transaction, all of ReGENco’s non-management investors will sell their membership interests to TIC. ReGENco will also pre-pay all of its economic development loans to both the City of West Allis and the State of Wisconsin as part of the recapitalization.
ReGENco is one of the largest non-OEM turbine and generator maintenance and repair organizations in North America.
In addition to making the investment, Toshiba has selected ReGENco as its authorized service provider for its large steam turbine-generators, growing to more than 100 units by 2010, in the United States and Canada. Toshiba also intends to use ReGENco to manufacture various turbine and generator parts.
“Attracting a global power generation leader like Toshiba, one of the world’s leading large steam turbine manufacturers, is a real honor to our company and employees,” said John Bobrowich, president and chief executive officer of ReGENco. “Providing service support for Toshiba’s large and rapidly expanding installed base of steam turbine generators in North America will allow ReGENco to better serve our existing broad customer base, many of whom are now adding Toshiba manufactured units to their fleets. This is a win-win agreement for all the involved parties and will assure that our North American plant operators get the best support available for all their units.”
“We are delighted to have reached an agreement with ReGENco,” said Atsuhiko Izumi, vice president of the Thermal & Hydro Power Systems & Services Division of Toshiba’s Power Systems Co. “Toshiba is a leading supplier of combined-cycle and coal-fired thermal power generating equipment in North America. By maximizing the use of ReGENco as our authorized local service provider for this essential market, and making full use of ReGENco’s extensive repair, maintenance, parts manufacturing, procurement and fast turnaround time capabilities, we will strengthen our overall capabilities and optimize the total support we offer our customers.”
“We were impressed by the global level of Toshiba’s interest in investing in our company,”said James Mathes, ReGENco’s vice president and chief financial officer.
The ReGENco name will be retained, as will its management team.
ReGENco has grown to have about 115 employees, and Bobrowich told SBT that the company plans to add 25 to 50 additional workers to meet the growing work demand with from Toshiba.
ReGENco is a Metropolitan Milwaukee Association of Commerce (MMAC) “Master Mettle” Future 50 company.
TIC has operated in the United States for almost 40 years. Its headquarters is located in Houston, Texas.
Analyst praises M&I’s spinoff of Metavante
Marshall & Ilsley Corp.’s decision to spin off its Metavante Corp. banking transactions unit with financial assistance from the Warburg Pincus private equity firm drew praise on Wall Street.
Fox-Pitt Kelton analyst Andrew Marquardt said Marshall & Ilsley, the Milwaukee-based parent company of M&I Bank, will emerge from the deal with about $1.8 billion in capital to deploy.
“We believe this transaction provides both companies greater flexibility to grow without competing over scarce capital,” Marquardt stated in a note to clients. “We believe the spin out is accretive to both entities and provides increased shareholder value.”
In a conference call, Marshall & Ilsley chairman and chief executive officer Dennis Kuester said the majority of growth for Marshall & Ilsley’s banking business has come from outside the “slow-growth” Wisconsin market, as the company has acquired other banks serving fast-growing populations in regions such as Arizona and Florida. The percentage of revenues from banking in Wisconsin for Marshall & Ilsley has declined from 73 percent in 2001 to 40 percent in 2006, Kuester said.
Gregory Smith, chief financial officer of Marshall & Ilsley, said in the conference call that the proceeds from the spinoff will help the company further grow its core banking business.
Marshall & Ilsley president Mark Furlong, who will become CEO of the company at its annual meeting on April 24, said some of the proceeds of the transaction will “likely” be used to repurchase some of its stock shares.
After the spinoff is completed, Marshall & Ilsley shareholders will receive one share of Marshall & Ilsley stock and one share of Metavante stock for every three shares of Marshall & Ilsley stock they currently own.
Warburg Pincus agreed to invest $625 million to buy a quarter of Metavante.
Marquardt’s praise came a day after another Wall Street analyst predicted that the spinoff will make Marshall & Isley an attractive takeover target for larger banks.
Marshall & Ilsley’s board of directors unanimously approved the agreement and recommended its approval by the company’s shareholders, who will be asked to vote on the proposed deal at a special meeting to be held on a date to be announced.
As a stand-alone company, Brown Deer Metavante Corp. will have approximately 5,500 employees. Metavante Corporation generated revenue of $1.5 billion and had net income of $160 million in 2006.
Frank Martire will continue to serve as president and chief executive officer of Metavante, and Mike Hayford will remain senior executive vice president and chief operating officer.
The board of directors of the new company is expected to have 11 members: Kuester; Martire; Hayford; David Coulter, a Warburg Pincus managing director who heads the firm’s Financial Services practice; James Neary, a Warburg Pincus managing director and co-head of the firm’s Technology, Media, and Telecommunications practice; an additional Warburg Pincus representative to be named; and five independent directors, one of whom is expected to be Ted Kellner, chairman of the board and CEO of Fiduciary Management Inc.
Kirkegaard acquires Milwaukee graphics company
Ellen Kirkegaard is the new president and owner of Cory Graphics Screen Printing & Embroidery, a Milwaukee company that makes custom apparel and related items for companies, schools and sports teams.
Kirkegaard acquired the company from founder Kim Cory.
Cory Graphics, located at 2900 S. 10th St., recently upgraded its technology and added employees, fueling a 20-percent growth in revenues. Kirkegaard plans to add more equipment. Additional information is available at www.corygraphx.com.
Marcus to acquire more theaters for $75 million
Marcus Theatres Corp., a division of The Marcus Corp., announced it has signed an agreement to acquire selected assets, including 11 theater locations, from Cinema Entertainment Corp. (CEC) for an estimated $75.7 million in cash.
CEC is a St. Cloud, Minn.-based theater chain.
The 11 theater locations have a total of 122 screens in five metropolitan markets, including St. Cloud; Duluth, Minn./Superior, Wis.; Fargo N.D./Moorhead, Minn.; Cedar Falls/Waterloo, Iowa; and Iowa City, Iowa.
Marcus Theatres will operate the screens in those markets, while CEC will continue to own and operate the balance of its existing theater circuit.
The transaction is expected to be completed in late April 2007, subject to customary closing conditions, consents and approvals, including early termination or expiration of the applicable waiting period under the Hart-Scott-Rodino Act.
