CHICAGO, IL / BIRMINGHAM, MI – Colfax Creek Capital and Rock River Capital Partners formed Fluence Automation LLC to acquire the mail and parcel sorting business unit of Bell and Howell. The acquisition included the mail and parcel sorting systems / hardware and related software and service revenue associated with the hardware as well as assets that will be leveraged for growth opportunities in the material handling and e-commerce fulfillment markets.
Colfax Creek and Rock River, along with key members of the management team, partnered with Tecum Capital Partners, Midwest Mezzanine and Wintrust Bank to acquire the business unit. All three partners have significant industry experience and provide a strong and stable capital base that will support the company’s growth objectives.
Fluence Automation will be led by Bell and Howell’s tenured VP and General Manager of Sorting, Mike Swift as President and CEO. “Fluence Automation will expand its position in the mail and parcel sorting market, making further investments in new market segments, including e-commerce, to accelerate growth,” Swift said. “Our automated solutions enable break-through productivity and speed-of-delivery improvements, backed by an outstanding suite of software and world-class customer support.”
“We are pleased to partner with Mike Swift and the Fluence team. Mike has led the business unit since 1999 and has a knowledgeable team in place,” said Ryan Satterfield of Rock River Capital. “We are focused on leveraging Fluence’s leadership position in its core mail processing market to continue to serve the expanding customer base. With this acquisition, we have provided Mike and the team with the capital necessary to take advantage of growth opportunities in the company’s core market as well as growth opportunities in the rapidly expanding material handling market.”
Jason Duzan of Colfax Creek added “that the relationship with our three capital partners is ideal.” “They are not only established middle market company investors, but they bring industry experiences to the company.”
Mike Swift, CEO of Fluence, added, “Colfax Creek and Rock River provide a long-term perspective to investing and are supportive of our growth objectives. We are focused on service and software improvements, product enhancements, international expansion and investment into e-commerce applications. My team and I are highly energized by this acquisition as it further enables us to focus on our existing and new emerging markets in our space.”
Colfax Creek is a private investment firm that takes a long-term approach to investing in smaller middle market companies. The firm invests in consumer product, service, and industrial companies in the Great Lake States. We prefer to support existing management in control investments, but we will support limited management transitions. Colfax Creek is based in Birmingham, MI. For more information visit: www.colfaxcreek.com.
About Rock River Capital
Rock River Capital is a Chicago-based private investment firm focused on investing in growing industrial and services businesses as well as other growth oriented opportunities. We generally prefer to partner with existing management in ownership transition situations and take a long term, patient approach. For more information visit: www.rockrivercp.com.
About Fluence Automation
Fluence Automation is an innovative technology solutions company that is headquartered in Wheeling, IL. Fluence Automation sells mail and parcel sorting systems and owns a portfolio of mail and parcel labeling technologies that are increasingly being adapted for the e-commerce fulfillment market. Fluence provides long-term support and customer care through its robust suite of software focused on vision/recognition and sorting applications and a service support network that is based primarily in the US with operating subsidiaries in the UK and Germany. For more information visit: www.fluenceautomation.com.
I am often asked, “Where did Colfax Creek come from?”
I wanted a name that was relevant to me and to the path that led me to where I am today. I spent months brainstorming names and ruling them out because they didn’t fit my story. That’s what a name does…it tells a story. It may be passed from generation to generation, bestowed in some way that represents your family’s history. That’s what I wanted for this firm…a meaningful name that represents my priorities, values, and heritage.
At first, I spent months on a running list of possible names based on streets and natural features in my adopted state of Michigan. But that’s just it…my path to Michigan began outside of ‘The Mitten’. It began in my hometown of Colfax, Illinois, a small farming community with a population of 1,036. A quick Google search of Colfax led me to Colfax Corporation, a publicly traded industrial business. I knew I would cause too much confusion if I just used Colfax; the name needed to be more distinct.
That’s how I ended up on Google Maps, zooming over my hometown. I began to note that the little stream that ran through town actually had a name, Colfax Creek. I knew that stream well…I just never knew it had a name.
You see, I grew up on a corn and soybean farm three miles from town and “the Crick”, as we called that stream of water, ran along the end of our corn fields about a half-mile behind our home. The Crick was a magical place in my childhood. I passed many hours fishing, wading, shooting my BB gun, building forts, camping, and floating inner tubes with my siblings and friends. It was a childhood paradise. Those moments made up an awesome childhood experience that cultivated my imagination, self-reliance, and intrinsic motivation. It was a destination after a hot day of walking beans, shucking sweet corn, and observing my father and his fellow farmers work together to produce something significant. My upbringing in small town America, where everyone knows each other and reputations are built over decades and lost overnight, taught me that relationships matter.
I had my name…Colfax Creek. It is a constant reminder of small town America where life was viewed with a long-term approach and based on the relationships that you formed whether for business or friendship.
CHAUNIE BRUSIE | AUGUST 10, 2017 | http://middlemarketgrowth.org
Tucked behind the main street of Frankenmuth, Michigan, where Bavarian architecture, world-famous chicken dinners and horse-drawn carriages are town trademarks, stands the grinding facility of GLE Precision.
Finding the right investor makes a difference. Any firm can invest in a company and provide capital, but Colfax Creek invests as a dedicated, long-term partner to drive business growth. That personal touch helped Colfax Creek founder Jason Duzan stand out against the competition in leading a recent recapitalization of Midwest Innovative Products, who does business as Twist and Seal, with the management team.
“After entertaining numerous offers from investment partners, Jason instantly rose to the top,” Twist and Seal founder and CEO Bryan Nooner said. “As a seasoned entrepreneur and founder of Midwest Innovative Products, I was looking for a partner that offered more than just capital. Having a partner that provided access to the appropriate funding was certainly important; however, it was not the key decision-making factor. Having the ‘right fit’ partner that understood both our current and future business needs was actually the critical hurdle that needed to be overcome.”
Colfax Creek’s investment will support Nooner in his vision to grow the Twist and Seal product line into more retailers, expand into new end markets, and introduce new products.
Based in the Chicago suburb of Frankfort, Twist and Seal designs and manufactures patented devices that protect electrical cords from water damage. The device snaps over where two cords plug together or where cords plug into a multi-plug power strip to keep snow, rain, and ice from affecting the connection. Twist and Seal serves a wide range of customers, including homeowners hanging Christmas lights, zoos, industrial operations, entertainment venues, construction sites, and municipalities.
Each Twist and Seal product has gone through rigorous lab testing, has been certified to industry standards and is manufactured in the U.S. Twist and Seal is a three-time recipient of the Most Innovative Product of the Year award at the National Hardware Show. Twist and Seal products can be found at most hardware stores, including Lowe’s, Home Depot, and Walmart.
“I am excited to partner with Bryan Nooner to continue to grow the Twist and Seal business,” Jason said. “I believe Twist and Seal is a real gem that has innovative and unique products, fantastic retail partners and, most importantly, a passionate CEO. Twist and Seal is a good fit for Colfax Creek, as we can leverage my experiences and resources leading investments in numerous consumer products businesses.”
Colfax Creek Capital isn’t just about making investments. It’s about building businesses to create lasting value for all the business’s stakeholders. I am focusing on “smaller” middle market companies in the Great Lakes states working with management and like-minded capital partners to improve their operations and grow their business over the long-term.
In the last 20 years, I’ve led nearly $2 billion in private investment transactions and managed or co-managed investments in 12 platform companies with EBITDA of $3 million to $12 million in the consumer products, services, and industrials sectors. I’ve sourced investment opportunities, closed those investments, worked with management to enhance value, and realized many of those investments.
Now I’m leveraging those years of private investment experience to invest in businesses where I have a greater level of involvement in the company’s success. Colfax Creek, named for my hometown in Illinois, is about building relationships and developing partnerships to create long-term value. I’m interested in working with people who are committed and passionate about a business and value integrity, transparency, and candor.
My investment experience includes leading deal negotiations, performing due diligence, financing, recruiting and retaining management teams and developing an investment strategy. Here is an overview of four different businesses I was previously involved with.
Colfax Creek will focus on the smaller side of middle market companies in the Great Lakes states – operations within a drive of Detroit. Staying closer to home allows me to spend more time working with each company to deliver more resources by utilizing my regional connections to improve the long-term health and success of my companies.
Life is too short to work with people you don’t like. The people factor is critical. I’m interested in building a partnership with the right companies run by the right people.
To find the best opportunities for Colfax Creek, I’ve developed investment guidelines.
Geography — Companies that operate in the Great Lakes states (Illinois, Indiana, Michigan, Ohio, Pennsylvania, and Wisconsin) or generally easy for me to visit.
Investment structure — Control investments or shared control with like-minded investors.
Company EBITDA — $2 to $7 million (or larger if I have a significant operational edge) with 10 percent or greater operating margins.
Industry focus — Consumer products, services, and industrials.
Management team — Prefer to support the existing management team or with limited management transitions.
Colfax Creek isn’t the right investment firm for every company. I am selective about the companies I invest in, as I am not just making a financial investment. It is personal. I am investing my time, energy and talent to help our collective vision succeed.
Visit Colfax Creek at colfaxcreek.com to learn more who we are.
BIRMINGHAM, MI – Colfax Creek Capital (Colfax Creek), a private investment firm focused on “smaller’ middle market companies, has partnered with the principals of Die Life Systems of Minneapolis, MN to launch Tool-Mod. Tool-Mod’s proprietary process extends the useful life of die cast tools when serviced at regular intervals (usually 20,000 to 30,000 cycles). The process will also treat cracks of previously heat checked tools without adding material or changing the dimensions. The tool will exhibit less soldering with better oil retention, better casting fill, and slower gate degradation. Colfax Creek’s investment will support the acquisition of Tool-Mod and the company’s growth initiatives as it expands into regional markets.
“Tool-Mod’s service is been used for years to close up surface cracks and to prolong tooling life which reduces the need for costly tooling replacement,” said Jason Duzan, at Colfax Creek. “I am excited to partner with the principals of Die Life to relaunch the business across the US.”
About Colfax Creek Capital
Colfax Creek Capital takes a long-term approach to investing in “smaller” middle market companies by building relationships with business owners and management teams to focus our capital and resources to create lasting value and a shared purpose. Colfax Creek’s investment focus includes Midwestern companies in consumer product, service and industrial sectors. Colfax Creek is based in Birmingham, MI. For more information visit: www.colfaxcreek.com.
Based in Michigan, Tool-Mod is a tool and die restoration specialist and maintenance service company. With a maintenance program, Tool-Mod’s proprietary process extends the tool’s life up to 35% longer while producing better parts with less scrap. For more information visit: www.tool-mod.com.
BIRMINGHAM, MI – Colfax Creek Capital (Colfax Creek), a private investment firm focused on “smaller’ middle market companies, has acquired GLE Precision, LLC (GLE). GLE is a precision manufacturer of tungsten carbide tooling, gauges and product components used in diversified industries, including water jet, computer chip, medical, battery, flow technologies, automotive and others for some of the most recognizable companies in the world such as Johnson & Johnson, Emerson, IBM, and Bosch. GLE is a “make-to-print” manufacturer for tooling, gages and product components that require high finishes, tight tolerances, and high resistance-to-wear properties. Colfax Creek’s investment will support the acquisition of GLE and the company’s growth initiatives as it expands into new end markets.
“GLE is uniquely positioned to work with many of the world’s best manufacturers both in the US and internationally with capabilities of extremely tight tolerances and high finishes that are difficult to find across the globe,” said Jason Duzan, at Colfax Creek. “I am excited to partner with Mr. Bucholz and the management team to reinvigorate the company for future growth.”
Clint Bucholz, president of GLE, added, “Colfax Creek provides a long-term perspective to investing and business to support our growth initiatives, including adding new equipment and processes to better serve new and existing customers.”
About Colfax Creek Capital
Colfax Creek takes a long-term approach to investing in “smaller” middle market companies by building relationships with business owners and management teams to focus our capital and resources to create lasting value and a shared purpose. Colfax Creek’s investment focus includes Midwestern companies in consumer product, service, and industrial sectors. GLE Precision is Colfax Creek’s first control investment and is based in Birmingham, MI. For more information visit: www.colfaxcreek.com.
About GLE Precision
Founded in 1961 and headquartered in Bridgeport, MI, GLE is a niche build-to-print manufacturer of highly-engineered tooling, gauges, and product components used in a broad range of applications where hardness and resistance to abrasive wear are of prime importance. GLE is capable of machining and grinding a wide range of ceramic and carbide products with an emphasis on carbide tooling, carbide components, carbide cylindrical gauges and masters, high-pressure intensifiers, and other special wear parts. For more information visit: www.gle-precision.com.