M&I expands with acquisition of Florida bank
Marshall & Ilsley Corp. announced it has signed a definitive agreement to acquire United Heritage Bankshares of Florida Inc., one of the fastest-growing banks in the Sunshine State.
The estimated value of the acquisition is $217 million, as shareholders of United Heritage Bankshares will receive 0.8740 of a share of M&I common stock for each share of United Heritage common stock.
The acquisition by Milwaukee-based M&I will be a corporate culture shock for United Heritage, which has billed itself as “The bank that belongs to Central Florida” since it was founded in 2001.
The bank is based in Orlando and serves Orange and Seminole counties, and its Web site (www.uhb-fl.com) notes that its senior management and board of directors are comprised of native Central Floridians.
“No other word better describes our bank than the word ‘Heritage.’ Most of our staff, our officers, our directors, our shareholders and our customers have local roots, and better yet-a local focus … This bank truly belongs to Central Florida … The headquarters of a company is where the heart is. Ours is right here! Our heritage has always been to stay as close to our customers as we possibly can,” the company states on its Web site.
United Heritage Bank, with $736 million in assets as of Sept. 30, has 13 branches in the metropolitan Orlando area. The current United Heritage Bank branches are expected to become M&I Bank branches in the second quarter of 2007.
“United Heritage’s strong commercial real estate and growing commercial loan base will provide us with an attractive franchise in the dynamic Orlando market,” said Dennis Kuester, chairman and chief executive officer of Marshall & Ilsley. “The introduction of M&I’s line of products and services to our new customers will provide additional growth opportunities.”
David Powers, president and chief executive officer of United Heritage Bank, and the bulk of the company’s leadership team are expected to retain positions in the merged company.
United Heritage Bank’s strong local presence in Orlando made it an attractive acquisition target for M&I.
“David Powers and his team at United Heritage are highly respected in the Orlando metropolitan area for their dedication to providing excellent customer service and a strong commitment to the community,” said Mark Furlong, president of Marshall & Ilsley. “Their expertise and continued leadership will play a key role in M&I’s future growth in the Orlando market.”
Powers said, “As a result of this partnership, our customers and associates will have the opportunity to benefit from the broad range of products and services M&I has to offer. We have had a long standing relationship with M&I and view this as a natural progression for our company, employees, and customers.”
Greg Smith, M&I’s chief financial officer, told SBT, “Orlando is a market we’ve been excited about for a while, and United Heritage is the best independent company operating in that market. We’re really excited to get this company and this quality of people.”
Brass Ring Capital acquires
IGC Technologies
Brass Ring Capital Inc., a Milwaukee-based private equity firm, recently completed the acquisition of IGC Technologies Inc.
IGC, which formulates, blends and distributes ingredients utilized primarily by the metal casting industry, has locations in Milwaukee, Glendale and Gottingen, Germany.
Brass Ring Capital partnered with Ralf Schonfelder, IGC’s president, and Lewis & Clark Private Equities LP, a Cedar Rapids, Iowa-based private equity firm, in the acquisition. The partners acquired the firm from its founder, John Brander. With the transaction, Schonfelder has been named chief executive officer of IGC.
Financial terms of the acquisition were not disclosed.
“John (Brander) kept ownership in local hands and will remain as a consultant doing the same type of R&D (research and development) work he built the company around,” said Steve Peterson, managing director of Brass Ring. “Ralf now becomes a significant owner, which is a reflective of the effort he’s put forth in the business over the past few years. We, of course, welcomed the opportunity to be part of a solid, local business. We see a number of growth opportunities for IGC, including new product developments and add-on acquisitions. Backing a first rate international manager like Ralf to execute the strategy really sold the investment for us.”
“The deal with Brass Ring is a great catalyst for us to move the business forward to the next level. IGC is well known within its industry segments, and we intend to further leverage our strong brand recognition into global markets,” Schonfelder said.
Milwaukee-based M&I Bank played a lead role in the acquisition.
