Mergers and acquisitions

Mergers and acquisitions

Baird buyout fund acquires Fort Atkinson firm
Baird Capital Partners (BCP), the U.S.-based buyout fund of Baird Private Equity, announced the acquisition of Digi-Star Holdings Inc., a Fort Atkinson-based international manufacturer of agriculture scales and weighing equipment.
Senior financing for the transaction is being provided by The PrivateBank and U.S. Bank National Association, with Fifth Street Finance Corp. providing the mezzanine. Financial terms of the deal were not disclosed.
In addition to its headquarters in Fort Atkinson, Digi-Star has a plant Panningen, The Netherlands.
The company’s customized weighing systems and software are incorporated into mobile farm equipment to provide precise control over input costs, monitor resource utilization, enhance yield management and optimize farm profitability.
“We have actively followed the agricultural products and process controls industries for the past few years and believe Digi-Star is a strong platform business that is well positioned to become the leading global precision measurement company serving the agricultural sector,” said Andrew Brickman, BCP Partner.
Brickman will join Digi-Star’s board of directors, along with Malcolm “Mac” Moore, the former CEO of Gehl Corp., and Dave Schroeder, the former CEO of Intermatic, Inc. Both Moore and Schroeder are members of BCP’s operating network and bring agricultural and process controls backgrounds.
“This transaction represents an exciting next step for Digi-Star customers and employees,” said Digi-Star president and CEO Grant Ihrke. “We look forward to working closely with Baird Capital Partners to build on our commitment to providing the highest class, precision measurement products to agricultural producers across the world.”
Baird Private Equity is the global private equity group of Milwaukee-based Robert W. Baird & Co. Inc.

United Healthcare to acquire XLHealth Corp.

UnitedHealthcare, a UnitedHealth Group company, has agreed to acquire XLHealth Corp., a sponsor of Medicare Advantage health plans with a primary focus on Medicare recipients with special needs, such as those with chronic illness, and those also eligible for Medicaid.
Baltimore, Md.-based XLHealth plans to expand its business into Wisconsin in 2012.
XLHealth’s expertise in improving care for Medicare beneficiaries with elevated health risks, which includes its innovative and nationally recognized clinical model of care, will enhance UnitedHealthcare’s Medicare Advantage portfolio.
The acquisition will allow UnitedHealthcare to better serve chronically ill and dual eligible members.
The all cash transaction is subject to customary regulatory approvals. The acquisition is expected to close during the first half of 2012, and is expected to be accretive to UnitedHealth Group earnings per share.
"Combining XLHealth’s substantial capabilities and outstanding employees serving high-risk, chronically-ill Medicare beneficiaries with UnitedHealthcare’s breadth in both Medicare and Medicaid will significantly enhance our ability to serve older Americans," said Gail Boudreaux, CEO of UnitedHealthcare, which does business in Wisconsin. "As more Americans enter Medicare with multiple chronic conditions, including many who are also eligible for Medicaid, health plans that deliver effective complex care management can make an enormous difference in the quality of care beneficiaries receive. We greatly admire the work of the XLHealth team and look forward to leveraging XLHealth’s clinical management expertise to better serve our membership."
"We are excited to be joining forces with UnitedHealthcare and look forward to realizing the many benefits of this merger," said Frederick C. Dunlap, chairman and CEO of XLHealth.

Private equity firm acquires Milwaukee-based CPI
Brockway Moran & Partners Inc., a Boca Raton, Fla.-based private equity firm, announced it has acquired Crisis Prevention Institute Inc. (CPI) of Milwaukee.
CPI provides crisis prevention, nonviolent physical intervention and dementia care training for education, health care and corporate customers.
Since CPI’s founding in 1980, more than 6 million professionals have participated in the company’s training programs in 39 countries.
Lawrence Shagrin, a partner of Brockway Moran & Partners, said, "We are attracted to Crisis Prevention Institute’s demonstrated results and benefits delivered to customers, industry leading market position, and the positive market trends and growth drivers in the company’s sector. Additionally, we are enthusiastic about partnering with the Crisis Prevention Institute management team and believe that the company has excellent prospects for continued growth."
"We are excited about our newly formed partnership with Brockway Moran & Partners and the significant financial and strategic support they will offer us going forward," said Tony Jace, CEO of CPI. "Our core objective, which is up-skilling professionals to provide the best care to those most vulnerable in our society, continues to be mission-critical to our customers. This partnership with Brockway Moran & Partners allows Crisis Prevention Institute to achieve this core objective, continue to provide unrivalled service to our customers, and accelerate our growth. We believe that Brockway Moran & Partners’ significant experience building middle market businesses will be valuable in achieving our objectives and we are thrilled to be part of their portfolio."

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