Acquisition Announcements

Innovance Tombstone

Quazar Capital Corporation is pleased to announce that their client, Innovance, Inc. (Innovance), has acquired Midland Technologies, Inc. (Midland), the second acquisition Quazar advised Innovance on in 2016. Midland specializes in the manufacturing of products designed as components in the die-casting and plastic mold industries. Midland has a wide range of manufacturing customers located in the United States, Canada, and Mexico. This transaction demonstrates Quazar Capital’s continued expertise in assisting businesses achieve their growth plans through acquisition, and its experience working with ESOP organizations.

Midland Technologies, Inc. (www.midlandtechnologies.com), founded in 1990 by Rick Dubay, based in Rogers, MN, is an industry leader in the manufacturing of valve-less vacuum blocks, valve-less super chill blocks, ultimate vent blocks, vacuum systems, as well as other products for the die-casting and plastic mold industries.

Innovance, after completing the successful acquisition of Mass Finishing, Inc. in early 2016, continued to be interested in completing another add-on transaction and pursued Midland in order to diversify their product offerings and customer base.

“Midland Technologies is a successful, well-run business that further adds to Innovance’s capabilities and product lines. We are excited about the new opportunities that this acquisition will provide in the die-casting and plastic mold industries. Midland has unique products in a niche market, with many opportunities to expand their customer base and offerings. Overall, the success of Midland’s manufacturing capabilities, its talented workforce, and its high-quality products make it a great fit for Innovance going forward,” said Mike Larson, CEO, Innovance.

Rick Dubay, President and Owner, Midland Technologies, commented, “I am extremely excited for the future of Midland Technologies. Innovance will bring more resources and capabilities to the table that will help Midland reach new levels of performance. After years of dedication and hard work, it is nice to see the employees in good hands with a leading manufacturer in the Midwest.”

Innovance, Inc. is a 100% employee – owned company (ESOP) and the holding company for subsidiaries, Lou-Rich, Inc. (www.lou-rich.com), Almco, Inc. (www.almco.com), and Mass Finishing, Inc. (www.massfin.com). Lou-Rich provides contract engineering and manufacturing services. Almco is a state-of-the-art manufacturer of industrial deburring, parts washing, and vibratory metal finishing equipment. Mass Finishing is the leading supplier of high energy centrifugal barrel finishing machines, supplies, and services. For more information on Innovance, Inc., please visit www.innovance.com.

ABOUT QUAZAR CAPITAL CORPORATION: Quazar Capital Corporation is a Minnesota Investment Banking Firm with over 25 years’ experience confidentially helping privately held companies with Mergers and Acquisitions, Recapitalizations, and Financial Advisory Services. Quazar specializes in transitioning companies with Revenues of $5 – $100 million and EBITDA of $2 – $10 million.

Innovance Tombstone

MINNEAPOLIS, MINNESOTA: Quazar Capital Corporation is pleased to announce that their Client, Innovance, Inc., has acquired Mass Finishing, Inc.

THE TRANSACTION: Innovance’s Board of Directors hired Quazar Capital to assist the Company in their strategic plan to leverage existing capabilities and expand product and service offerings through acquisition. Quazar conducted an extensive search for potential acquisition targets and Mass Finishing, Inc. rose to the top as a Company that fit well with Innovance’s businesses and culture. Innovance acquired all the assets of Mass Finishing, Inc. and is continuing Mass Finishing’s operations out of Howard Lake, MN.

THE SELLER: Mass Finishing, Inc. (www.massfin.com) was formed in 1995 by Mike Mathisen and Tom Mathisen upon acquiring the mass finishing division of Timesavers, Inc. The Company is a leading supplier of high energy centrifugal barrel finishing machines, supplies, and services, and is located in Howard Lake, Minnesota. Mass Finishing sells equipment and services to a wide range of market segments around the world including: aerospace, automotive, medical, firearms, and other industrial sectors.

“In 1995, without any knowledge on running a business, my brother Mike and I bought Mass Finishing. We worked ambitiously and turned the Company into a profitable and reliable business. Now it’s time to take another step and have a company that is a known leader in the industry take Mass Finishing to the next level. The experience in sales, service and marketing of Innovance’s Companies will make Mass Finishing even stronger in the metal finishing industry.” – Tommy Mathisen, Director of Technology of Mass Finishing, Inc.

THE BUYER: Innovance is a 100% employee – owned company (ESOP) and the holding company for subsidiaries, Lou-Rich, Inc. (www.lou-rich.com) and Almco, Inc. (www.almco.com). Lou-Rich provides contract engineering and manufacturing services. Almco is a state-of-the-art manufacturer of industrial deburring, parts washing, and vibratory metal finishing equipment. For more information on Innvoance, Inc., please visit please visit www.innovance.com.

“We are very excited about acquiring Mass Finishing, as it brings new dimensions to our current product and service offerings, and we have acquired a very talented and experienced workforce. This move adds high energy centrifugal barrel finishing systems to our product line-up, which complements our Almco vibratory finishing systems. In addition, it expands our distribution network and fits nicely within our overall manufacturing capabilities,” – Mike Larson, CEO, Innovance.

ABOUT QUAZAR CAPITAL CORPORATION – Quazar Capital Corporation is a Minnesota Investment Banking Firm with over 25 years’ experience confidentially helping privately held companies with Mergers and Acquisitions, Recapitalizations, and Financial Advisory Services. Quazar specializes in transitioning companies with Revenues of $5 – $100 million and EBITDA of $2 – $10 million.