DealmakÂers in Minnesota and naÂtionÂalÂly are headÂing for what should be the best year of capÂiÂtal raisÂing and corÂpoÂrate merÂgers since the Great Recession. A few reÂcent deals:
• Tonka Bay EquiÂty Partners last week sold St. Paul-based Apex InÂforÂmaÂtion Technologies to larÂger Westview Capital of BosÂton. Tonka Bay, which overÂsaw a boost in business since 2007 when it inÂvestÂed in the health care elecÂtronÂic payÂment sysÂtems, said Apex's sales have nearÂly doubÂled over the past four years to $50 milÂlion and emÂployÂment has grown from 45 to 95. The price was not disÂclosed.
• St. Cloud-based GNP, ownÂer of 1,700-employee Gold'n Plump chickÂen, plans to sell for an unÂdisÂclosed sum to a big IlÂliÂnois hog proÂducÂer.
• CarÂdiÂoÂvasÂcuÂlar Systems, which just got fedÂerÂal apÂprovÂal for an inÂnoÂvaÂtive, ecoÂnomiÂcal vasÂcuÂlar disÂease proÂceÂdure, has raised nearÂly $75 milÂlion in a comÂmon-stock ofÂferÂing.
• PriÂvate equiÂty shop Goldner Hawn Johnson of Minneapolis sold its Allen EdÂmonds shoe manÂuÂfacÂturÂer of WisÂconÂsin for someÂthing apÂproachÂing $200 milÂlion to a larÂger ownÂer, in what has been a great turnÂaÂround unÂder Minneapolis-based leadÂerÂship since the Great Recession.
"PriÂvate equiÂty acÂtivÂiÂty conÂtinues to trend highÂer on an annuÂal baÂsis since the lowÂest point of the reÂcesÂsion," said Steve Judge, a Minnesota boy who heads the PriÂvate EquiÂty Growth Capital Council in Washington, D.C., in a reÂcent e-mail reÂsponse. "The priÂvate equiÂty exit enÂviÂronÂment conÂtinues to be strong, which means capÂiÂtal is disÂtriÂbutÂed back to inÂvesÂtors, such as pensions, charÂiÂtaÂble founÂdaÂtions and uÂniÂverÂsiÂty enÂdowÂments, who rely on priÂvate equiÂty reÂturns to fulÂfill their soÂcial misÂsions."
Dan Tiemann of KPMG's TransÂacÂtions & ReÂstrucÂturÂing Group preÂdicts a good 2014 thanks to "sigÂnifiÂcant cash on corÂpoÂrate balÂance sheets, more conÂfiÂdence in the overÂall ecÂonÂomy. … Expanding core busiÂness funcÂtions through acquisitions is an apÂpealÂing stratÂegy."
Many priÂvate equiÂty and inÂvestÂment bankÂing partÂners on Wall Street and in the Twin Cities are headÂing for six- and seven-figÂure boÂnusÂes early next year.
Minnesota volunteer shocked by Philippines devastation
ReÂtired busiÂnessÂman Art Otto of Minneapolis is a key volÂunÂteer in the hurÂriÂcane-devaÂstatÂed TaÂcloÂban area of the PhilÂipÂpines. He is workÂing with the American RefÂuÂgee Committee, the Minneapolis-based huÂmaniÂtarÂian aid aÂgenÂcy that works with refuÂgees globÂalÂly to reÂcovÂer and build anew.
Otto is workÂing on a "cash-for-work" program that emÂploys peoÂple to clean neighborhoods, cut and reÂmove fallÂen trees, do conÂstrucÂtion and disÂtriÂbute houseÂhold items.
"It is inÂcredÂiÂbly reÂwardÂing work as every small efÂfort and achieveÂment is warmÂly reÂceived," Otto said in an e-mail mesÂsage. "I have been to HonÂduÂras right afÂter HurÂriÂcane Mitch, spent sigÂnifiÂcant time in Sri LanÂka afÂter the tsuÂnaÂmi, and spent sevÂerÂal weeks in LouÂiÂsiÂanÂa afÂter HurÂriÂcane Katrina. None of those exÂperiÂencÂes have preÂpared me for the exÂtreme devÂasÂtaÂtion I have seen in and around TaÂcloÂban. In some neighborhoods, not a house has been left standÂing. The area of devÂasÂtaÂtion exÂtends for miles and miles raÂdiÂatÂing out from TaÂcloÂban.
"The reÂsiliÂence of the peoÂple of the PhilÂipÂpines is unÂbelievÂable. Men and women come to tears when they show me their deÂstroyed homes. When talkÂing with them a bit more, they beÂgin to disÂcuss reÂbuildÂing and soon are smilÂing and … showÂing inÂterÂest in me rathÂer than in their own dire conÂdiÂtion. The kids seem to be bounce back quickÂly, laughÂing and playÂing among the unÂsafe rubÂble. They are inÂcredÂiÂbly cuÂriÂous about this old guy walkÂing through their neighborhoods. They nevÂer fail to smile, shake hands or 'high-five' me."
For more information, go to www.arcrelief.org.
SHORT TAKES
• In a reÂcent interÂview about whethÂer highÂer taxÂes on the wealthÂy will drive afÂfluÂent MinÂneÂsoÂtans to low-tax states such as Texas, Minnesota RevÂeÂnue ComÂmisÂsionÂer MyÂron Frans said he's batÂtling a false imÂpresÂsion aÂmong some tax lawÂyers — specifically that charitable givÂing to Minnesota causes from those seekÂing to esÂtabÂlish residency in othÂer states is one of the 26 tests Minnesota uses to deÂterÂmine state resÂiÂdenÂcy. Frans said charÂiÂtaÂble givÂing into Minnesota is not an indication of Minnesota resÂiÂdenÂcy. The tests inÂclude priÂmary resÂiÂdence, votÂer regÂisÂtraÂtion, loÂcaÂtion of emÂployÂment, juÂrisÂdicÂtion of proÂfesÂsionÂal liÂcenses and motor veÂhiÂcle liÂcenses. More inÂforÂmaÂtion: www.revenue.state.mn.us/inÂdiÂviduÂals. Last week's tax colÂumn is at: www.startribune.com/busiÂness/234843991.
The law firm of Robins KapÂlan Miller & Ciresi last week doÂnatÂed $500,000 to the University of Minnesota Law School to creÂate and enÂdow a fund to reÂcruit and reÂtain facÂulÂty memÂbers. The gift is the latÂest in the law school's "GenÂeraÂtions" fundraising camÂpaign and brings to $60 milÂlion the aÂmount raised so far. The school's goal is $70 milÂlion. The Minneapolis firm LeonÂard Street and Deinard also conÂtriÂbuted $500,000 to the camÂpaign. The largÂest doÂnaÂtion to date is $9 milÂlion from the RobÂina Foundation, an orÂganÂiÂzaÂtion that was creÂatÂed by James BingÂer, the late HonÂeyÂwell exÂecÂuÂtive.
• The Robins firm and two partÂners, KathÂleen Flynn Peterson and MarÂtin Lueck, also conÂtriÂbuted $1.125 milÂlion to WilÂliam Mitchell College of Law, the school's largÂest gift from a law firm in its hisÂtoÂry. The funds are to be used to enÂdow two facÂulÂty poÂsiÂtions and fund adÂdiÂtionÂal scholÂarÂships for women.
DAVID PHELPS