Milwaukee-based private equity firm Borgman Capital has acquired Minneapolis-based Minnesota Tile and Stone and plans to merge the firm with another one of its portfolio companies. Terms of the deal were not disclosed.
MTS is merging with Milwaukee-based K.G. Stevens, a fabricator and installer of countertops, and provider of cabinetry and luxury appliances. The merger will allow both companies to expand their Midwest footprint and diversify their product offerings.
Jason Gaare, past president of Mequon-based Super Steel LLC, has been named the new president of K.G. Stevens. Alan Dale, former owner and president of MTS, has retired.
"MTS and K.G. Stevens share a standard of high-quality product offerings and best-in-class customer service,” said Sequoya Borgman, Borgman Capital’s founder and chief executive officer. “These shared values, geographic proximity and immediate benefit to customers of both companies make the acquisition a win-win, as well as opportunities for future innovation. Under Jason’s leadership we have the technical, customer and people management skills to lead this expanded organization into is next successful phase.”
Founded in 1930, MTS offers a unique selection of specialized products, including tile, custom fabricated natural stone, quartz, porcelain countertops, and brick fireplaces to residential and commercial customers. MTS has five showroom locations throughout the Twin Cities.
“I have been blessed with nearly 50 years involvement with MTS, a 92-year family business. I started my journey in the early 1960s riding delivery trucks, unloading boxcars and sweeping warehouse floors,” said Dale. “I met many incredible people throughout the U.S. and Europe; several becoming mentors and taking me under their wing in my early years. None of this exciting and long career would have been possible without great suppliers, customers, and teammates.”
K.G. Stevens is the largest countertop fabricator in Wisconsin and was acquired by Borgman Capital in October 2022.
Associated Bank provided senior financing for the MTS transaction while Milwaukee-based Reinhart Boerner Van Deuren s.c. served as legal counsel.