Keystone Capital Inc.

Who we are

Over 20 years successfully investing personal capital

Our story began in 1994 when Keystone’s founders acquired a niche business services company and ran it as day-to-day executive management. They grew the business dramatically through organic growth and multiple accretive acquisitions and eventually merged it into a large publicly traded company. These entrepreneurial roots created what Keystone is today – we invest in market leading, niche companies in close partnership with management. We take each investment personally, investing our own capital rather than being beholden to outside investors. We do not have a short-term outlook, but instead, are in it for the long-haul exercising the patience and dedication needed to build highly successful companies. We have operating experience so we can roll up our sleeves next to our management partners, respecting and learning from their deep expertise while providing our full support and guidance.

Keystone’s investments all share one thing in common – a mutual commitment by management and Keystone to thoughtfully and patiently build a sustainable, market-leading business. Our story is just beginning. We are hungry to continue aggressively investing in first-class companies and teams, building “proud to own” businesses and enjoying the journey along the way.

Keystone's approach

INVEST

GROW

SUPPORT

Keystone is single-mindedly focused on working hand-in-hand with business leaders to create long-term value. Investing our own capital rather than raising capital from third parties affords us tremendous flexibility. It provides us with a risk-return profile in sync with management, and allows us to make decisions based on long-term goals while forging true partnerships with our management teams through good times and bad.

Our partnership approach extends to the third party service providers with whom we work. We have steadfast, long-standing banking relationships providing us strength, security, and reliable financial support, even in uncertain economic times. For investment bankers, brokers, and other intermediaries, we pride ourselves on only committing to what we can deliver. Our size, entrepreneurial approach, and lack of formal committees result in quick decisions and certainty to close for sellers which we have consistently demonstrated over the last 20+ years.

Providing a strong value proposition for everyone we do business with is paramount. It’s how we create value in ways beyond the numbers.

The Keystone difference

Operating Partnership

Timely and professional execution

Long-term investment horizon

Commitment of personal capital

We believe existing management possesses inherent knowledge that is difficult – if not impossible – to replicate. As such, we rely on our management partners to run the day-to-day operations. However, as a business evolves, it can often benefit from an experienced partner well-versed in tackling the complexities and challenges of effectively managing a growing business. Keystone’s “roll-up our sleeves” mentality means that when needed, the firm is capable of providing day-to-day support to management across operations, finance, strategic planning, and acquisition execution. Keystone’s professionals bring a wealth of experience in operating and building businesses.

Because our reputation is paramount, Keystone only commits to doing what we know we can deliver. Our professionals have a proven, 30+ year track-record of successfully investing in sectors across the economy, as well as a sterling reputation and deep referral network across the financial markets. Keystone’s nimble size, entrepreneurial culture, and lack of internal approval committees allow us to be a quick and dependable buyer, often closing transactions in 45 days or less.

As the management team of a middle-market business, you don’t have an artificial time horizon on your business, so why should your financial partner? Keystone’s commitment to personal rather than third party capital ensures that management and its financial partner are fully aligned in making the right decisions for the long-term health and success of the business.

It’s easy to take unnecessary risks when you are investing outside investors’ money. However, like our management teams, Keystone has our own “skin in the game”. This simple fact creates a partnership dynamic that fosters complete alignment of interests and a disciplined, thoughtful approach to risk taking.

What you can expect

Business owners
Intermediaries
Management teams
Financing partners

We are your partners with 100% alignment of interests and a long-term, patient orientation to develop and grow a market-leading business. We value what you have created and do not tell you how to run your business. We want to help you build on the foundation you have established while honoring the reputation and values that have made your company successful thus far.

Our approach to the transaction process is not long and drawn out. You should anticipate an efficient and reliable closing at the business valuation to which we commit.

Keystone’s reputation is our most significant asset, and we pride ourselves on delivering on what we say. As entrepreneurs ourselves, we understand the trials and tribulations of running your own business, and can relate to your clients who are often family-run and entrepreneur-led business owners. Our management-centered approach and experience patiently working alongside business leaders frequently differentiate us as an owner’s partner of choice. Intermediaries should expect to dialogue with a firm whose certainty of closing, at the value to which we commit, is second to none. Our due diligence centers around the key business characteristics critical to long-term success, which when combined with our long-standing financing and service provider relationships, supports an efficient transaction process.

Expect to partner with a firm that believes strong leadership is the single most important factor in determining our collective success. Direct ownership in the business is the ultimate motivator, and we incentivize key management team members with equity as an important ingredient for success.

We believe existing management possesses inherent knowledge that is difficult – if not impossible – to replicate. We respect your expertise and never in our history have we invested in a company without strongly supporting the management team. We have the utmost confidence in the management teams in whom we invest, and ultimately, strategic direction is your decision.

Financing partners should expect an equity investor whose commitment of personal capital means we stick with our companies through good times and bad. We have “skin in the game” in each investment, and work tirelessly to support our investments with operational support, strategic direction, and additional equity capital when merited.

What you can expect

Business owners

Intermediaries

Management teams

Financing partners

Keystone’s crafting of the deal to acquire a controlling interest in Israel Berger & Associates Inc. was a masterful act of balance. All participants were able to balance risk, reward, incentive, sacrifice, time horizon and accommodation. It was accomplished by a rigorous intellectual analysis, careful listening and patience. Although the lender’s liquidity was the underpinning of the deal, the equity provided by Keystone themselves, rather than just cash from outsiders, was a key attribute to us at IBA. It convinced us that Keystone’s intention to be active participants in nurturing the growth of the company was sincere. The folks at Keystone are fun to work with, and their experience and strategic thinking is invaluable.

Israel Berger

Founder and President, Israel Berger & Associates

Acquisition criteria

Platform investments – EBITDA of $4M or more
Add-on investments – company specific; reference individual company profile pages

Company Size

Growth potential (internal or through acquisition)
Leading market position
No or low cyclicality
Quality reputation – “Proud to own”
High return on assets

Key
Characteristics

Strong existing team preferred
Core leadership continuity post-transaction
Collaborative approach to business-building
Motivated by stock ownership

Management

Professional services & consulting
Business services
Industrial technology & manufacturing
Food & beverage
Consumer products

Areas of
Interest

Majority control investments preferred
- Entrepreneur/owner recapitalization
- Corporate divestitures
- Special situations

Transaction Types

Platform investments – EBITDA of $4M or more
Add-on investments – company specific; reference individual company profile pages

Company Size

Growth potential (internal or through acquisition)
Leading market position
No or low cyclicality
Quality reputation – “Proud to own”
High return on assets

Key
Characteristics

Strong existing team preferred
Core leadership continuity post-transaction
Collaborative approach to business-building
Motivated by stock ownership

Management

Professional services & consulting
Business services
Industrial technology & manufacturing
Food & beverage
Consumer products

Areas of
Interest

Majority control investments preferred
- Entrepreneur/owner recapitalization
- Corporate divestitures
- Special situations

Transaction Types

As the founder of my business, when I chose to pursue an investment partner, I wanted a firm that appreciated what I had already built, respected the values we had in place, and was able to continue our growth. In Keystone Capital, I found that partner. From day one, they have been deeply engaged in our industry and our business – together we have grown revenues four-fold, completed two acquisitions, expanded the executive team and managed to have a lot of fun along the way.

Lanny Bailey

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Andrew W.

Judson Technologies, LLC is Acquired by Teledyne Scientific & Imaging, LLC

Keystone News

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2016 was a record year for Keystone Capital. We acquired more businesses, deployed more capital and traveled more miles supporting our portfolio than at any time in our history. We are extremely proud of what we have accomplished and even more optimistic about our continued success in 2017. We could not have achieved these results without the great work of our staff, and with that we are excited to announce the following well-deserved promotions at Keystone: Chaoran Jin and Jason Van Zant have been promoted to Managing Director, and Dennis Howe and Bill Sommerschield have been promoted to Principal.

Chaoran Jin Promoted to Managing Director

Chaoran joined Keystone in 2009. Chaoran has been the lead professional supporting the operational and acquisition needs of our consumer products business, Costume Gallery, and most recently, our Asian foods platform, Nature Soy. She has also played an active role with Peak Technologies and Movilitas Consulting, and is the lead professional managing our activities and office in China. “Chaoran brings Keystone deep foundational insight into business strategy development. She has also created tangible value to our broader portfolio by driving our Asian sourcing and sales initiative,” commented David Greer, Managing Director at Keystone. Prior to Keystone, Chaoran worked for Owens Corning, McKinsey & Company, Citigroup and Motorola.

Jason Van Zant Promoted to Managing Director

Jason joined Keystone in 2008, and over his time at Keystone has closed 15 transactions for the firm. Jason is the primary lead professional on E4H, our health care architectural firm, and The Scott Group, our luxury goods business. “Jason has been a huge asset to our acquisition efforts over the years. He has significantly enhanced our marketing and new business development approach, and more recently brought the same energy to the overall support of some of our businesses”, commented Scott Gwilliam, Managing Director and Co-Founder of Keystone. Prior to Keystone, Jason worked for Lincoln International.

Dennis Howe Promoted to Principal

Dennis joined Keystone in 2013 and has had a significant impact on many of our portfolio companies, including Capsa Solutions, Avalon, Atlas Die and Rocore. From his days at Danaher as an executive, Dennis has a deep background in acquisition integration, operational efficiency and process change management. In addition to his time at Danaher, Dennis' previous experience includes working for The Boston Consulting Group on strategy assignments for industrial, financial and consumer goods clients and at BASF Corporation working as an Operations Manager and as a Product Development engineer.

Bill Sommerschield Promoted to Principal

Bill joined Keystone in 2014 and has played a key role with several of our more recent platform companies. He is the lead professional on The Greeley Company and Cherry Hill Photo, and also led the negotiations on the acquisitions of Nature Soy and Rubbermaid Healthcare. Prior to joining Keystone, Bill was a VP at Lake Capital, where he focused on the firm’s investment activities and served on the Board of Directors of Engine Group, ORC International, HMI, and Addison Group.

The last five years has been a particularly exciting time at Keystone Capital. We have significantly increased our level of acquisition activity with both new platforms and add-ons to our existing portfolio, and this increased activity has driven the need for even greater portfolio involvement. We could not have accomplished this without the tremendous dedication and effort of Chaoran, Jason, Dennis and Bill.

“These team members are being recognized for their past contributions to the firm as well as their future potential,” commented Kent Dauten, Managing Director and Co-Founder of Keystone. “We thank them for their dedication and hard work and look forward to what they will accomplish in the coming years.”

Contact Information

Chaoran Jin
(312) 219-7976
cjin@keystonecapital.com

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Dennis Howe
(312) 219-7979
dhowe@keystonecapital.com

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in, and partnership with, The Greeley Company (“Greeley” or “the Company”).

Greeley is a leading healthcare consulting firm that partners with hospital administrative and clinical teams to solve problems and improve processes related to accreditation and regulatory compliance, medical staff optimization and physician alignment, and credentialing and privileging. Greeley's offering includes consulting services, interim staffing, business process outsourcing, education services, and external peer review. The Company's mission is to work with hospitals and hospital systems to optimize internal processes and workflows, simplify documentation, and improve physician and patient satisfaction. Headquartered in Danvers, Massachusetts, Greeley serves hospitals and hospital systems of all sizes across all 50 states. For more information on Greeley, please visit www.greeley.com.

“Keystone is delighted to partner with the exceptional team at Greeley to build on their tradition of excellence in solving complex problems for hospitals across the country,” commented Bill Sommerschield, Vice President at Keystone Capital. “Greeley is the latest example of our continued focus on partnering with leading professional services firms, and we look forward to supporting management as they continue to expand Greeley’s market presence and enhance their comprehensive portfolio of world-class services,” added Scott Gwilliam, Managing Director at Keystone Capital.

Steve Bryant, President and CEO of The Greeley Company, remarked, “We are thrilled to begin our partnership with Keystone Capital. We share a long-term vision for Greeley’s future, and with their patient approach to investing and ongoing commitment to our leadership team and employees, we are one step closer to realizing that vision. Their deep understanding of our business and financial support will enable us to pursue exciting growth initiatives and continue to deliver best-in-class solutions to our hospital clients.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by The PrivateBank, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and The Greeley Company was advised by Duff & Phelps Securities, LLC in connection with this transaction.

Contact Information

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Keystone Capital, Inc. ("Keystone") is pleased to announce that it has completed an investment in, and partnership with, Nature Soy, Inc. ("Nature Soy" or "the Company").

Nature Soy, a major supplier of soy and vegetarian food products to the US market, has been producing high quality soy products since 1990. Located in Philadelphia, the Company primarily serves the mid-Atlantic region with distribution channels reaching as far west as Chicago. Nature Soy's products include both traditional and specialty tofu, soy milk, rice noodles and soy puffs, all of which can be found in major Asian grocery stores, supermarkets and natural food stores, as well as restaurants in the Northeast. The Company strives to produce the best-tasting and freshest products, using non-GMO soy beans and its proprietary formulas to create a unique and desirable flavor profile.

“We are excited to partner with the Nature Soy team to continue building on their tradition of excellence in the soy foods market,” commented Chaoran Jin, Principal at Keystone Capital, “With management’s continued leadership and our operational and financial support, we will achieve our collective vision of developing Nature Soy into a leading national supplier of soy products and other authentic ethnic foods through organic expansion and targeted acquisitions.”

Nature Soy co-owners SunFei Ye and YatSun Wen will continue to be shareholders in the Company and will play integral roles in the day-to-day operations and management of the business. "We have been actively seeking the right partner to help us take Nature Soy to the next level, and Keystone's commitment to our management team and employees, experience in the food industry, and financial support for growth initiatives makes them an ideal partner for Nature Soy," said SunFei Ye and Yatsun Wen.

Terms of the transaction are not being disclosed. Senior debt financing was provided by Wintrust Bank, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and Baker Tilly Capital, LLC advised Nature Soy in connection with this transaction.

Contact Information

Chaoran Jin
(312) 219-7976
cjin@keystonecapital.com

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Morris Switzer Acquires Ascension Group Architects, Partners with DaSilva Architects, Consolidates Healthcare Design Platform Under E4H

Keystone Capital, Inc. (“Keystone”) is pleased to announce that Morris Switzer Environments for Health (“Morris Switzer”), a portfolio company of Keystone, has transformed into Environments for Health Architecture (“E4H”) by acquiring Ascension Group Architects (“AGA”) of Dallas, TX, and partnering with DaSilva Architects (“DaSilva”) of New York, NY.

Keystone originally invested in Morris Switzer, the New England branch of E4H, in 2015. Morris Switzer has been a full service architecture firm committed exclusively to the design of healthcare facilities in New England for over 25 years. AGA, founded in 2001, develops award-winning architecture and interior design for healthcare facilities across the southern and western United States. AGA specializes in rapid design processes, large project implementation, and award-winning design for physicians and corporate/for-profit healthcare organizations. DaSilva, based in New York, has 35 years of healthcare design innovation experience. DaSilva has worked extensively at most of the major medical centers in the tri-state area of New York, New Jersey, and Connecticut, providing client-centered service, patient-centered healthcare design, and interior design services.

The combined E4H will offer comprehensive and unprecedented national architectural services in healthcare design, with an expanded depth of experience, talent, and geographic reach. The firm has 130 healthcare planners and architects in offices across the United States, and has collectively completed more than 5,000 healthcare projects over the past three decades. The E4H portfolio includes over $5 billion in projects, encompassing community hospitals, academic medical centers, life science laboratories, R&D space, children's hospitals, mental health facilities, ambulatory care centers, rehabilitation facilities, assisted living, and medical office buildings. Services include healthcare planning, architecture, and interior design. E4H will maintain offices in Boston, Dallas, New York, Portland (Maine), and Burlington (Vermont).

“Healthcare providers and life sciences businesses have a unique set of needs; balancing the delivery of care with business imperatives requires a deep understanding of this rapidly changing industry,” said Dan Morris, Partner, E4H. “E4H can now offer both a knowledge of the local healthcare market and access to an expanded talent and experience pool that will benefit our clients enormously.”

“We are extremely encouraged by the development of the E4H platform,” noted Jason Van Zant, Principal of Keystone. “This announcement solidifies our vision for E4H and represents the first of many additions to the platform that we expect to see in the coming years.”

E4H is interested in further partnerships with and acquisitions of complementary firms servicing the health and life sciences sectors which would enhance the geographic coverage and/or the portfolio of E4H.

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone and E4H by Honigman Miller Schwartz & Cohn LLP.

About Keystone Capital, Inc.

Keystone Capital, Inc. is a private investment firm based in Chicago, Illinois that manages in excess of $300 million in investment capital. Formed in 1994, its mission is to acquire and build a portfolio of exceptionally high quality, mid-sized businesses that are leaders in their niche markets. Keystone is differentiated by its investment of personal as opposed to third-party capital, which results in a longer investment horizon of 10+ years and an ability to enter into true operating partnerships with the professional management teams of its companies.

Contact Information

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in, and partnership with, Target Engineering Group, Inc. (“TEG” or “the Company”).

Target Engineering Group is a leading provider of construction management, professional engineering and construction inspection services in Florida. The Company focuses on providing engineering and inspection services related to bridges and roadwork, partnering predominately with the Florida Department of Transportation on both statewide and district-specific projects. Headquartered in Coral Gables, TEG has a statewide presence with over 140 employees across eight offices as well as several temporary offices for large projects. For more information on Target Engineering Group, please visit www.targetengineering.com.

“We are thrilled to be partnering with the exceptional management team at Target Engineering Group to build on their tradition of excellence in serving the Florida transportation engineering market,” commented Scott Gwilliam, Managing Director at Keystone Capital. “As the management team continues to operate TEG with the highest level of service, Keystone will provide financial backing and its experience in building engineering services companies to help management expand TEG’s presence into other key states and build out a more comprehensive portfolio of civil engineering services.”

Raj Rangaswamy, President of Target Engineering Group, commented “We are excited by the opportunity to partner with Keystone Capital. Keystone’s long-term approach to investing, ongoing commitment to our management team and employees, and experience in the engineering sector make them the ideal partner for TEG. Their financial support gives us significant operational resources to pursue key growth initiatives and accelerate the realization of our vision.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by The PrivateBank, and legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Erik Gernant
(312) 219-7969
egernant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in and partnership with Cherry Hill Holdings, Inc. (“Cherry Hill Photo” or “the Company”).

Cherry Hill Photo is the U.S. market leader in providing mall-based holiday photography services and products. With a rich history dating back to 1961, Cherry Hill Photo manages on-premises Santa and Easter Bunny photography programs for over 325 mall locations throughout North America. The Company is headquartered in Marlton, New Jersey with an additional location in Ontario, Canada. For more information on Cherry Hill Photo, please visit www.cherryhillphoto.com.

“We are thrilled by the opportunity to partner with the management team at Cherry Hill Photo to build on their rich, decades-long history of providing world-class holiday experiences. The management team will continue to operate the business with the same enthusiasm and excellence in service they have always delivered, with Keystone Capital supporting the Company’s growth and development”, Kent Dauten, Keystone Capital Managing Director.

Ed Warchol, the President of Cherry Hill Photo, commented “We are very excited to partner with Keystone Capital. Keystone’s long-term investment approach and support of our existing team are a few of many characteristics that make Keystone an ideal partner for Cherry Hill Photo. The partnership with Keystone will provide Cherry Hill access to significant operational resources allowing us to continue to operate the business with the highest-levels of service, capitalize on key growth opportunities, and ultimately better serve our customers.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP.

Contact Information

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Chaoran Jin
(312) 219-7976
cjin@keystonecapital.com

Peak-Ryzex, Inc, a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of M-Netics.

M-Netics is an end-to-end enterprise mobility solutions provider and developer of the industry leading IM2 enterprise mobility software suite. M-Netics solutions cover retail omni-channel (in-store and back office), supply chain, mobile worker and proof of delivery requirements. Customers include leading logistics providers, manufacturers, retailers and field service organizations. Please visit www.mnetics.co.uk for more information.

Peak-Ryzex provides end-to-end enterprise mobility, managed services, printing and mobile data capture solutions for performance-driven organizations focused on the optimization of supply chain and field-based business processes. Peak-Ryzex’s in-depth industry-specific experience, state-of-the-art solutions and managed services, and exemplary customer support provide transformational business solutions and results that deliver greater ROI and outstanding value. Peak-Ryzex serves as a trusted business partner for some of the world’s largest companies, while also supporting local and regional customers with an extensive coverage footprint throughout North America and Europe. For more information on Peak-Ryzex, visit www.peak-ryzex.com.

“The acquisition of M-Netics is aligned with our strategy to continue offering customers the most complete end-to-end enterprise mobility solutions portfolio in the industry,” said Ross Young, CEO of Peak-Ryzex. “M-Netics will bring complementary products, partnerships and services to our portfolio while allowing us to expand our capabilities into mobile software application development and strengthens our offerings in specific verticals such as retail,” added Young.

Together, Peak-Ryzex and M-Netics will provide the full lifecycle services to plan, procure, provision, activate, manage and support commercial and rugged mobile devices, carrier services, and mobile software applications while delivering business data and insights to improve operational efficiencies and increase employee productivity – whether it be in the supply chain, out in the field workforce or on the retail floor. “After carefully considering all of our options for accelerating the growth of M-Netics, I am extremely excited for us to join forces with Peak-Ryzex and be part of one of the largest, most dynamic international mobile solutions providers in the market today,” said Tim Hamilton-Davies, founder and CEO of M-Netics. “The combination with Peak-Ryzex provides our business with additional scale and immediate access to supplementary resources in the UK and North America to offer our customers enhanced levels of value, support and service,” added Hamilton-Davies.

Terms of the transaction are not being disclosed. Senior debt financing was provided by The PrivateBank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Contact Information

Scott Gwilliam
(312)-219-7971
sgwilliam@keystonecapital.com

Chaoran Jin
(312)-219-7976
cjin@keystonecapital.com

Capsa Solutions (“Capsa”), a portfolio company of Keystone Capital and a leading provider of mobile computing carts, medical carts, and medication management systems to the healthcare industry, is pleased to announce the completion of its acquisition of Newell Rubbermaid Inc.’s Healthcare Division. (“RHC”). RHC provides technology-enabled products including mobile computing carts, medication carts, and wall-mounted IT workstations to healthcare facilities worldwide. The acquisition marks Keystone Capital’s sixth successful corporate carve-out.

The acquisition of RHC is the Capsa’s fourth acquisition in the last eight years, and brings together two leaders in the healthcare IT and computing industry. RHC’s position has been built on their suite of premium healthcare computing products and reputation for unmatched customer service, which is highly complementary to Capsa’s existing product portfolio and equally outstanding customer service. Combined, Capsa now offers the broadest product suite in the industry, and the addition builds on Capsa’s unique ability to provide tailored computing technology solutions to acute care and long-term care partners worldwide.

“We are thrilled to welcome Rubbermaid Healthcare’s exceptional people and products to Capsa Solutions,” said Capsa Solutions CEO Andrew Sherrill. “Our recent growth has been focused on adding line and brand extensions thoughtfully, and always with the ever-evolving needs of our acute care and long-term care partners at the forefront of the process. We’ve done that here, and are very pleased with the outcome.”

This latest addition to Capsa’s product suite solidifies it as a leader in the healthcare technology and computing industry. Keystone Capital and Capsa continue to pursue accretive healthcare IT and technology-enabled products acquisition opportunities with the goal of further enhancing the success and leadership enjoyed by Capsa today.

Legal counsel was provided by Kirkland & Ellis LLP.

Contact Information

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Dennis Howe
(312) 219-7979
dhowe@keystonecapital.com

Peak-Ryzex, Inc, a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of Manage Mobility, LLC.

Headquartered in Alpharetta, GA, Manage Mobility is an end-to-end provider of mobile procurement, logistics, and carrier management services and developer of the ManagedTel™ software platform. ManagedTel is a software-as-a-service (SaaS) platform that serves as a central information repository of all mobile device and carrier management services on an international basis for procurement, reporting, asset management, mobile business intelligence and telecom expense management. Please visit www.managemobility.com for more information.

“Manage Mobility provides Peak-Ryzex with an expanded suite of managed mobility services to help our enterprise customers better maintain, manage and support their commercial and rugged mobile devices, carrier services, and mobile applications,” said Ross Young, CEO of Peak-Ryzex.

Peak-Ryzex plans to leverage the Manage Mobility’s technology platform to provide customers a 360° view of their mobile device and printer estate through one centralized portal. All key managers and employees of Manage Mobility will join Peak-Ryzex. “As we evaluated all of our options for securing growth capital for our business to capitalize on the unprecedented growth in the Managed Mobility Services market, joining forces with Peak-Ryzex presented us with a tremendous opportunity to combine our history of innovation with Peak-Ryzex’s industry-leading capabilities in end-to-end enterprise mobility, managed services, printing and mobile data capture solutions,” said Mike McGuire, founder and CEO of Manage Mobility.

Senior debt financing was provided by The Private Bank, and legal counsel was provided by Fredrikson & Byron, P.A.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Chaoran Jin
(312) 219-7976
cjin@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed an investment in and partnership with the shareholders of MorrisSwitzer Environments for Health, LLC (“MorrisSwitzer” or “the Company”).

MorrisSwitzer is a leading architecture and design firm focused exclusively on the healthcare and life sciences industries. From its headquarters in Williston, Vermont and additional offices in Boston, Massachusetts and Portland, Maine, the Company services a client base consisting of leading healthcare, academic and private institutions in the Northeastern U.S. MorrisSwitzer has an impressive portfolio of healthcare-focused work, having completed over 3,000 projects across over 130 hospitals and medical facilities since inception. Morris Switzer was founded in 1990 by Dan Morris, and today is led by Dan and six additional partners including Jill Boardman, Jennifer Arbuckle, Jason Carney, Thomas Morris, Bill Repichowskyj, and Dale Taglienti. For more information on Morris Switzer, please visit the Company’s website at www.morrisswitzer.com.

The existing partners of MorrisSwitzer will remain significant shareholders of the firm and will continue to lead the day-to-day operations of the Company. “We are energized about the partnership between Keystone and MorrisSwitzer,” commented Dan Morris. “With Keystone’s experience in our industry and the greater access to resources we’ll have as a result of this investment, we plan to accelerate our strategic growth plan for the business.”

MorrisSwitzer represents Keystone’s fourth investment in the architecture/engineering industry. “The opportunity with MorrisSwitzer was a natural fit for Keystone given our experience in the architecture and engineering industry, as well as management’s desire for a partner with a long-term mentality,” noted Jason Van Zant, Principal of Keystone Capital. “The foundation that Dan, Jill Boardman and the team have built is powerful and we are confident that together we can continue its impressive track record.”

MorrisSwitzer will be pursuing further partnerships with and acquisitions of complementary firms with the completion of this investment. Areas of interest for further investment post-closing will include other regional market leaders in healthcare architecture, as well as firms specializing in the laboratory and life sciences markets.

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Contact Information

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Chaoran Jin
(312) 219-7976
cjin@keystonecapital.com

Rocore Holdings (“Rocore”), a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of CTI Industries, Inc. (“CTI” or “the Company”).

Headquartered in Orange, CT, CTI is a service provider focused on the highly specialized repair and refurbishment of heat exchangers and steam condensers. CTI’s proprietary repair methodologies are used in the refinery, marine, power generation, and utility industries. The Company counts blue-chip customers in all of these industries as its customer base, and has installations in over 20 countries in the past five years alone. In addition to its North American operations, CTI operates a division in Dubai, United Arab Emirates. Please visit www.cti-ind.com for more information on CTI.

Rocore is a leading designer and manufacturer of heat exchangers and related equipment used to cool air, water, or oil for a variety of applications. Rocore’s products are manufactured out of five North American facilities and are sold to original equipment manufacturers and aftermarket users across a diverse range of industries, including heavy duty truck, power generation, industrial, rail, military, bus and construction equipment. Please visit www.rocore.com for more information on Rocore.

“For Rocore, CTI represents a compelling opportunity for many reasons,” commented Stuart Eden, CEO of Rocore. “We are excited to have the CTI team joining us, and will preserve what has made CTI successful while executing on exciting growth opportunities in front of the company.”

CTI will operate as an independent division of Rocore, and will continue with its operations uninterrupted. All key managers and employees of CTI will remain with the CTI division and join Rocore. Perry Tallman, co-owner of CTI alongside his brother Peter prior to the acquisition, will join Rocore as President of the CTI division. “Our father was a co-founder of CTI in 1976, and CTI is a special part of our family,” stated Tallman. “We are confident that we’ve found a great partner in Rocore and Keystone, and we look forward to continuing CTI’s market leading position well into the future.”

Senior debt financing was provided by The Private Bank, and legal counsel was provided by Kirkland & Ellis LLP.

Contact Information

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Dennis Howe
(312) 219-7979
dhowe@keystonecapital.com

Keystone Capital, Inc. ("Keystone") is pleased to announce that its portfolio company IBA Holdings, LLC, d/b/a Vidaris and LPI (“Vidaris”, “LPI” or the “Company”) has been acquired by Cortec Group Fund V, L.P. (“Cortec”). Terms of the transaction have not been disclosed.

Founded nearly 90 years ago and headquartered in New York, New York, Vidaris and LPI are leading specialty architectural and engineering consulting firms, respectively, providing highly technical, value-added advisory, inspection and testing services. The Company employs over 200 professionals in eight offices worldwide and serves as an independent third-party advisor for leading developers, property owners, industrial operators, utilities, architects and engineers. The Company's multidisciplinary, integrated service offering includes three major segments: (i) Building Envelope: wall, window, roof and restoration consulting; (ii) Engineering: fitness-for-service and failure analysis; and (iii) Energy: building sustainability and energy efficiency consulting.

Vidaris was the result of a successful partnership originally formed in 2006 between Keystone and original founding partners Israel Berger and Marc Weissbach. During the course of the almost nine year investment horizon, Keystone and management successfully professionalized the operations of the firm allowing for further growth, executed four strategic add-on acquisitions, and grew the business almost four-fold. "Our successful partnership with Israel, Marc and the entire Vidaris organization is a testament to the power of the Keystone model – patience, long-term vision, and a belief in investing in fundamentally sound businesses," commented Scott Gwilliam, Managing Director, Keystone Capital. "We will sorely miss our years with the Vidaris team, but we know that Vidaris is well-positioned for the next chapter of its evolution.”

“Over nearly ten years, Vidaris has grown and changed dramatically,” noted Weissbach. “Keystone’s patient approach, knowledge of the professional services industry, and dedication to management’s vision were invaluable to Vidaris. But as importantly, the alignment of interests Keystone created with management shareholders, given they invest their own personal capital, made Keystone an ideal partner for us during this phase of our growth.”

Keystone Capital has a high level of domain expertise in the architecture, engineering and technical consulting industries and continues to pursue investments in these fields. In addition to Vidaris, past and present investments in the industry include Eagleton Engineering and Kidde Fire Trainers.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Bill Sommerschield
(312) 219-7973
bsommerschield@keystonecapital.com

Keystone Capital is pleased to announce the addition of Bill Sommerschield and Andrew Wehr to the team.

Bill Sommerschield

Bill Sommerschield joins the firm as a Vice President, and will be a member of Keystone’s investment team. His primary responsibility will be the identiﬁcation, sourcing, and execution of new acquisition and investment opportunities for Keystone and its partner companies.

Prior to joining Keystone, Bill was a Vice President at Lake Capital, a Chicago-based private equity firm, where he focused on the firm’s investment activities and served on the Board of Directors of Engine Group, ORC International, HMI, Addison Group, and Soil Safe. Bill also worked in the investment banking divisions of Morgan Stanley and Credit Suisse where he was actively involved in mergers and acquisitions as well as debt and equity offerings in the industrial, business services, and education industries. Prior to Morgan Stanley, Bill was a Co-Founder of Wonder LLC, an experiential children’s retail company, where he led concept development, strategic and financial planning, and capital raising activities.

Bill can be reached at bsommerschield@keystonecapital.com or (312) 219-7973.

Andrew Wehr

Andrew Wehr joins the firm as a Vice President of Finance. Andrew’s focus will be working with Keystone’s operations and finance team, with a specific responsibility for Keystone’s portfolio company finance and accounting support. In this role, Andrew will work directly with the finance and accounting leaders of Keystone’s portfolio companies.

Prior to joining Keystone, Andrew served as International Accounting Manager of Groupon, Inc. His previous experience also includes serving as Chief Financial Officer for Midwest Mechanical Group Inc., as well as over 5 years in Ernst & Young’s advisory and assurance practice.

Andrew can be reached at awehr@keystonecapital.com or (312) 219-7980.

“The hiring of both Bill and Andrew is indicative of Keystone’s desire to significantly grow our middle market transaction activity, as well to provide more support to our partner companies,” commented Kent Dauten, Managing Director of Keystone. “These hires bring Keystone’s total staff to thirteen, including eleven professionals, which is indicative of our belief in the future of our business.”

Scott Group Custom Carpets, a portfolio company of Keystone Capital, is pleased to announce the acquisition of Hokanson Carpets. Terms of the transaction were not disclosed.

Founded in Houston in 1987 by Larry Hokanson, Hokanson Carpets is a leader in the high end residential carpeting market. Hokanson operates six showrooms in major cities across the United States. Some of the most important rug and carpet projects in North America, Europe, the Middle East, Australia and Asia have Hokanson rugs complementing the décor. Leading projects include the restoration of the Russian Royal Palaces in St. Petersburg, the office of Canada’s Speaker of the House and the Burj Khalifa – the world’s tallest building – in Dubai.

The combination of Scott Group and Hokanson will not only strengthen the U.S. showroom presence of both companies in Los Angeles, New York, Chicago and Dallas, but expand it by establishing a presence in Houston and Boston. In addition, the combined company will be able to leverage a broader array of products through its network of showrooms and interior designer relationships throughout the world.

“Together, Scott Group and Hokanson comprise the largest U.S. provider of luxury handmade rugs and carpets,” said Michael Ruggeri, president and CEO of Scott Group. “We have long been admirers of Larry Hokanson and his company and believe that by coming together, we can lead the industry by providing an incredibly broad array of products for the interior design and architectural community,” added Ruggeri.

The acquisition of Hokanson is consistent with Scott Group’s mission to deliver a broader set of products to its current customer base and to expand its markets of focus. Keystone, Ruggeri and the Scott Group leadership team will continue to evaluate opportunities to add to Scott Group’s portfolio of brands through acquisitions or joint ventures. “Scott Group is poised to continue expanding and will aggressively pursue other future opportunities that enhance value for our world-class client base,” noted Ruggeri.

About Scott Group

Founded in 1969, Scott Group Custom Carpets is an industry leader in the design and production of custom carpets and rugs to the architectural design trade. Using the world's finest natural fibers, Scott Group combines creativity and meticulous craftsmanship in the design and production of luxury carpets and rugs. Scott Group owns and operates a fully integrated manufacturing facility in Grand Rapids, Michigan with 14 artists and a total staff of 200 employees. Scott Group carpets can be found in the finest aircraft, luxury retail stores, corporate offices, yachts and residences in the world, including the State Dining Room and Oval Office in the White House. For more information, visit www.scottgroup.com.

Contact Information

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Capsa Solutions, LLC, a leading provider of medication management systems, mobile computing carts and medical cart platforms for healthcare facilities, today announced the acquisition of Kirby Lester, based in Lake Forest, Illinois. Kirby Lester is a leading provider of automated medication dispensing solutions in retail, institutional, hospital, and ambulatory pharmacy settings. Capsa Solutions is a portfolio company of Keystone Capital, Inc.

Capsa Solutions has grown by expanding its product offering and reach into an array of healthcare markets both domestically and internationally. The addition of Kirby Lester products to Capsa Solutions further expands this offering in the medication dispensing category and provides a wider product portfolio to both Capsa and Kirby Lester customers.

“Adding Kirby Lester to our portfolio of products is another example of how Capsa is uniquely positioned to be an invaluable partner to healthcare pharmacies in all market sectors, stated Andrew Sherrill, CEO of Capsa Solutions. “Now, we can provide our customers, and the market overall, an expanded range of medication management and dispensing solutions to ensure greater value from a single-source supplier.” Sherrill added, “Kirby Lester has exhibited great leadership in product development and exceeding the expectations of their customers, and we’re very excited and proud to add them to the Capsa team.”

The combined product portfolios of Capsa Solutions and Kirby Lester will uniquely position the company to address the varied requirements of medication management in modern healthcare. Additionally, the new organization will provide customers and business partners a strong sales and service organization that works as a cohesive team, with broader development capabilities to deliver a wider array of product options to improve medication management and control. Kirby Lester will continue to operate under the same brand name as a division of Capsa Solutions.

“The acquisition of Kirby Lester by Capsa Solutions creates a significantly stronger organization for our customers and core markets,” said Kirby Lester CEO, Garry Zage. “The combination of products and professionals with extensive healthcare experience will drive new innovation that advances medication dispensing automation and accuracy, ultimately improving the safety and delivery of patient care.”

Senior debt financing was provided by The Private Bank, and legal counsel was provided by Kirkland & Ellis LLP.

About Capsa Solutions

Capsa Solutions is a worldwide leader in developing and delivering innovative products to mobilize the healthcare clinical and medication control processes. With combined product lines that include medication carts, medical carts, computer carts, and processing solutions, Capsa Solutions offers its markets decades of experience and a unique ability to meet the demands of diverse healthcare environments. Headquartered in Portland, Oregon, Capsa Solutions has an additional management, manufacturing, and distribution facility in Columbus, Ohio. To learn more, visit www.capsasolutions.com.

About Kirby Lester

Founded in 1971, Kirby Lester is a leading developer and provider of medication tablet/pill counters and medication dispensing technology. Kirby Lester products significantly improve medication counting accuracy and reduce labor time associated with medication dispensing and prescription fulfillment. Kirby Lester products can be found in more than 40,000 retail, hospital, specialty, and mail order pharmacies in nearly 40 countries. To learn more, visit www.kirbylester.com.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Dennis Howe
(312) 219-7979
dhowe@keystonecapital.com

Avalon Precision Casting (“Avalon”), a portfolio company of Keystone Capital, is pleased to announce the completion of its acquisition of Precision Metalsmiths, Inc. (“PMI”)

PMI is a leading manufacturer of high-precision, small, thin-walled investment castings, ranging from fractions of an ounce to over 20 lbs. The company’s proprietary casting technologies and almost 70 years of specialized engineering expertise have made PMI a preferred provider to the aerospace industry as well as for general industrial applications requiring complex small parts with thin walls and tight tolerances. PMI is also renowned for its long history of innovation in both process and materials associated with the investment casting industry.

“The partnership between Avalon and PMI demonstrates our commitment to building an industry-leading investment casting company capable of servicing a broad array of markets and adding increased value to our current and future customers from multiple facilities around the country,” said Doug Ciabotti, CEO of Avalon and leader of the newly combined business.

Avalon Precision Castings grew out of the merger of Avalon Castings of Cleveland, Ohio and Craft Cast Company of Jackson, Wisconsin to become one of the investment casting industry’s leading providers of precision-cast parts up to 100 lbs. Avalon services blue-chip OEM customers in the general industrial, pump and valve, oil & gas, food and dairy, military and capital equipment industries with industry-leading turnaround times and cost-effective, value-added services including a dedicated in-house machine shop and tooling operation.

"Together, Avalon and PMI represent a new era for investment casting companies greater than the sum of their parts," added David Dolata, owner of PMI. "Creating more opportunities and expanding capabilities are key to delivering what current and prospective customers have been asking for: new ways for the investment casting process to solve their ever-more-demanding metal parts challenges. Avalon's acquisition of PMI puts the combined company in a unique position to service customers needing metal shapes with value, quality, a wider size envelope and capabilities to offer parts complete to print within one company."

The combined company will operate four advanced manufacturing facilities in Ohio and Wisconsin, all featuring state-of-the-art automation and robotics to produce precision castings from over 200 different ferrous and non-ferrous alloys. Combined company certifications include ISO 9001:2008, PED, NADCAP, and ITAR. Together, the combined company will represent one of the largest enterprises in the commercial/industrial/aerospace segment of the investment casting industry.

Senior debt financing was provided by The Private Bank, and legal counsel was provided by Kirkland & Ellis LLP.

Contact Information

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Chaoran Jin
(312) 219-7976
cjin@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed the acquisition of Kidde Fire Trainers (“KFT” or “the Company”), a business unit of United Technologies Corporation’s Building & Industrial Systems Group. Terms of the transaction are not being disclosed.

KFT is the world leader in the design, installation and service of live fire training simulators and related technologies. The Company provides critical fire training technologies to fire academies, municipalities, governments, and industrial customers on a global basis. KFT’s industry leading products are installed in locations throughout the world. KFT is headquartered in Montvale, NJ with global offices located in Barlborough, United Kingdom and Aachen, Germany. For more information on KFT, please visit the Company’s website at www.kiddefiretrainers.com.

“The KFT transaction is a perfect fit with Keystone’s investment criteria – a market leader with a great brand, a solid management team, and opportunities for growth and value creation under our stewardship,” commented Scott Gwilliam, Managing Director of Keystone Capital. “We were glad to have worked with United Technologies on this important transaction, and look forward to working with the KFT management team to build a strong standalone business.”

All management and employees of KFT will be retained in the transaction, and the operations of the Company will be unchanged. “The most important benefit of this transaction from our perspective is our new ability to operate as a standalone business focused on nothing but fire training simulators,” commented Rob Lane, the newly-appointed CEO of Kidde Fire Trainers. “We are energized and excited by the idea of working with Keystone and leveraging their extensive experience with corporate divestitures such as this.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Dennis Howe
(312) 219-7979
dhowe@keystonecapital.com

Keystone Capital, Inc. ("Keystone") is pleased to announce that its portfolio company Eagleton Engineering, LLC ("Eagleton") has been acquired by Jacobs Engineering Group Inc. ("Jacobs"). Terms of the transaction have not been disclosed.

Eagleton is a full service engineering firm offering planning, design, and construction services for transportation systems and facilities used in natural gas and gas liquids, petrochemicals, carbon dioxide, other industrial gases and crude oil. Over a history spanning nearly five decades, Eagleton has developed a leading reputation for designing and managing the construction of pipelines, terminals, compressor and pump stations, oil and gas production and processing facilities, slug catchers and two-phase flow systems. Eagleton employs approximately 130 employees, residing at its Houston, Texas headquarters and Denver, Colorado offices, as well as in the field.

Eagleton was originally acquired by Keystone and Eagleton management in December 2011. During the course of the investment, Keystone and management successfully recruited additional management, executed meaningful project activity, grew the business by almost 100%, and opened an office in Denver, Colorado to service the Rocky Mountain region.

"Although we predict continued upside for Eagleton due to strong end market fundamentals in the oil and gas midstream infrastructure industry, Eagleton is strategic to the Jacobs organization and is expected to effectively supplement their aggressive growth plans," commented Scott Gwilliam, Managing Director, Keystone Capital, Inc. "It was a pleasure to work with Jacobs in this transaction, and we have no doubt that the company is in good hands. We wish our management team, employees and the Jacobs organization continued success in the future."

The existing management team of Eagleton, including CEO Duain Cagle, will join Jacobs. “Our partnership with Keystone was extremely successful and allowed us to grow the business significantly and operate with the entrepreneurial spirit,” noted Cagle. “However, we are excited about the future with Jacobs and believe that our business will continue to prosper under their ownership.”

Jacobs is one of the world's largest and most diverse providers of technical professional and construction services.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed a recapitalization and partnership with the shareholders of Scott Group Custom Carpets, Inc. (“Scott Group” or “the Company”).

Scott Group is the U.S. market leader in the design and manufacture of hand-made and machine-made custom wool (and silk and cashmere wool/silk blend) carpets and rugs for a variety of luxury applications. The Company is a leading supplier to the business aviation, yacht, and high-end residential and commercial markets both in the U.S. and abroad. With a rich history dating back to 1969, Scott Group produces 100% American made carpets at its headquarters in Grand Rapids, Michigan and has a network of showrooms throughout the U.S. For more information on Scott Group, please visit the Company’s website at www.scottgroup.com.

“We are extremely excited to be a part of the future of Scott Group and about the partnership we have formed with the management team,” commented Scott Gwilliam, Managing Director of Keystone Capital. “Scott Group’s niche market position, impressive business model and strong management team, along with their focus on bringing in a long-term, patient partner made this a perfect situation for Keystone.”

The prior ownership team consisting of Michael Ruggeri (President), Richard Ruggeri (Vice President) and Timothy Hill (Vice President, Operations and Finance) will remain significant shareholders and will continue to lead the day to day operations of the Company into the future.

“We are energized about the partnership between Keystone and Scott Group,” commented Mike Ruggeri, CEO of Scott Group. “This partnership will allow our team to continue running the business, provides access to greater resource levels and will accelerate our strategic growth plan for Scott Group.”

Scott Group will be pursuing acquisitions of complementary businesses with the completion of this recapitalization. Areas of interest for the Company include suppliers of luxury fabrics and interior products serving similar end markets (i.e. business jets and interior design).

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce the addition of Dennis Howe and Charles Shreve to the Keystone team.

Dennis Howe

Dennis Howe joins the firm as a Vice President, and will be a member of Keystone’s operations group. In this role, Dennis will be an integral part of supporting the management teams of Keystone’s family of companies with operational, strategic, and other initiatives.

Prior to joining Keystone, Dennis was with Danaher Corporation as Vice President of Business Management and Product Planning for Videojet and Vice President and General Manager of Thomson Linear Components. His previous experience includes working for The Boston Consulting Group on strategy assignments for industrial, financial and consumer goods clients and at BASF Corporation working as an Operations Manager and as a Product Development engineer.

Dennis can be reached at dhowe@keystonecapital.com or (312) 219-7979.

Charles Shreve

Charles Shreve joins the firm as an Associate. His primary focus will be in Keystone’s acquisition and business development group, with responsibility for identiﬁcation, sourcing, and execution of new acquisition and investment opportunities for Keystone and its partner companies.

Prior to joining Keystone, Charlie worked as an investment banking analyst in the industrials group at Jefferies & Co. in New York. While with Jefferies, Charlie focused on mergers and acquisitions, debt financings and equity raises for public and private companies. Prior to Jefferies, Charlie worked as an investment banking analyst at Cowen Group in New York.

Charlie can be reached at cshreve@keystonecapital.com or (312) 219-7978.

“The hiring of both Dennis and Charlie is indicative of Keystone’s desire to significantly grow our middle market transaction activity, as well to provide more support to our partner companies,” commented Kent Dauten, Managing Director of Keystone. “These hires bring Keystone’s total staff to eleven, which is indicative of our belief in the future of our business.”

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed two add-on acquisitions thus far in 2013.

Movilitas Consulting AG

Peak-Ryzex, a Keystone Capital holding since 2011, acquired Movilitas Consulting AG in May 2013. Peak-Ryzex is a market-leading provider of end-to-end enterprise mobility, managed services, printing and mobile data capture solutions for organizations focused on optimization of supply chain and field-based business processes. Based in Mannheim, Germany, Movilitas Consulting AG is widely considered one of the early pioneers of successfully implementing global templates for SAP Track & Trace projects. Movilitas Consulting's SAP Track & Trace customers include many of the world's largest industry-leaders in the areas of pharmaceuticals, tobacco and chemicals.

"In 2012 our acquisition of Catalyst strengthened our resources and focus on SAP supply chain and logistics execution solutions in North America, this investment in Movilitas Consulting expands our commitment to the SAP user community in the areas of SAP Track & Trace and mobility solutions, ultimately expanding our solutions and geographic footprint for our multi-national SAP customers," said Ross Young, CEO of Peak-Ryzex. "The board and management team of Movilitas Consulting AG as well as the division name and strategy will remain the same but they will now be able to leverage the larger scale and coverage of the Peak-Ryzex organization in North America and Europe," added Young.

For more information, see www.peak-ryzex.com and www.movilitas.com.

Bernal, Inc.

Atlas Die, a Keystone Capital holding since 2003, acquired Bernal, Inc. in July 2013. Headquartered in Elkhart, IN, Atlas Die is the largest North American producer of steel rule, flexible and solid rotary tooling servicing all aspects of the converting industry with six facilities located strategically across the United States. Bernal, headquartered in Rochester Hills, MI, is the leading North American manufacturer of solid and segmented rotary dies for the packaging and specialty converting industries. This transaction will bring together two of the most well-respected leaders in the packaging, consumer, and specialty converting industries, and will give customers a complete tooling suite of steel rule, flexible and solid rotary dies as well as system design and integration. Bernal had previously operated as a division of North American Cerutti Corporation, a wholly-owned subsidiary of the Cerutti Group (Officine Meccaniche G. Cerutti S.p.A.), a world leader in the manufacturing of packaging and printing machinery.

“The combination of Bernal and Atlas creates converting market opportunities for our customers limited only by imagination. It marries two respected market leaders with the greatest depth of converting knowledge and product breadth,” remarked Kenneth J. Smott, President and CEO of Atlas. Marc Voorhees, Vice President of Sales for Bernal added, “We look forward to working with the Atlas team and combining our strengths in packaging while we jointly develop other market opportunities.”

For more information, please see www.atlasdie.com and www.bernalrotarydies.com.

Terms of these transactions are not being disclosed. Senior debt financing for each transaction was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Contact Information

Scott Gwilliam
(312) 219-7971
sgwilliam@keystonecapital.com

Jason Van Zant
(312) 219-7974
jvanzant@keystonecapital.com

Eric Holter
(312) 219-7973
eholter@keystonecapital.com

Vidaris Holdings, LLC (“Vidaris”), a portfolio company of Keystone Capital, is pleased to announce the acquisition of Lucius Pitkin, Inc. (“LPI”). Terms of the transaction have not been disclosed. The transaction marks another significant step in the evolution of Vidaris to becoming a leader in professional consulting services to the architectural, engineering, and construction communities.

In addition, the transaction represents another expedited closing for Keystone, having been completed in time for calendar year end and in less than 40 business days from Letter of Intent to closing.

Founded in 1885, LPI is a leading consulting firm specializing in the areas of fitness for service, failure analysis, non-destructive testing, and metallurgical analysis. LPI’s mission critical services are utilized across a variety of market segments, including infrastructure, transportation, nuclear power, energy and utilities, general industrial, and litigation/insurance support. LPI employs approximately 55 professionals and is headquartered in New York, NY with additional offices in Amesbury, MA and Richland, WA. LPI is led by principals Robert Vecchio, Joseph Crosson, Thomas Esselman, and Paul Bruck. “We are quite excited about the opportunity for LPI’s principals and employees to join the Vidaris family,” stated Robert Vecchio, Principal of LPI. “Lucius Pitkin has a storied past and proud history, and with Vidaris, will continue to have a bright future.” Please visit www.luciuspitkin.com to learn more about LPI.

LPI will form a new, distinct brand within the Vidaris platform, which consists of IBA (exterior wall consultancy and inspection group specializing in building facades, roofing, water-proofing, renewable energy and non-destructive testing technologies), and Viridian (energy efficiency, sustainability, commissioning and regulatory compliance services). “The addition of LPI to the Vidaris platform of companies is yet another step towards the goal we identified when we partnered with Keystone – to build a market leading consulting firm capable of delivering multiple high value, niche services to demanding clients,” remarked Israel Berger, CEO of Vidaris. Please visit www.vidaris.com to learn more about the Vidaris platform.

Although LPI will become a division of Vidaris, very little will change as a part of the transaction. The four principals of LPI will become principals of Vidaris. Robert Vecchio will become CEO of Lucius Pitkin, Inc. and join the board of Vidaris. All employees and offices of LPI will be retained, and day-to-day operations will be unaffected. The combined firm (IBA, Viridian and LPI) will employ approximately 175 professionals with headquarters in New York City and four locations throughout the country.

Vidaris’s vision is to acquire highly specialized, niche architectural and engineering firms in order to leverage their expertise to provide a more holistic service across specialties and industries. “Long term, our goal is to utilize the Vidaris platform to provide a superior service level to the clients of IBA, Viridian and LPI than we do today,” commented Marc Weissbach, President of Vidaris. “We believe that by maintaining what has made each of us successful and then building a powerful organization to support the service delivery, we can be even more successful in the future.”

Keystone Capital continues to seek independent, third party providers of niche, highly specialized engineering consulting services with greater than $5 million of revenue as add-on acquisition/growth strategy targets for Vidaris. Please contact one of the Keystone team members below with any opportunities that might be a fit as a part of this strategy.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Eric Holter
(847) 236-5353
eholter@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Craft Cast Holdings, LLC (“Craft Cast”), has completed a merger with Avalon Precision Casting Company (“Avalon”). Terms of the transaction are not being disclosed.

Avalon is a leading manufacturer of precision investment castings based in Cleveland, Ohio. Founded in 1986 by John Kemper, Sr. and Mel Kman, Avalon is one of the leading niche, independent investment casting foundries in its region. Avalon services blue-chip customers in the general industrial, pump and valve, oil & gas and capital equipment industries. All employees, management, and operations of Avalon will remain unchanged in the partnership with Craft Cast.

“The partnership between Craft Cast and Avalon demonstrates our commitment to building a leading investment casting platform capable of servicing a broad array of end markets and customers from multiple facilities across the country,” remarked Al Scargall, CEO of Craft Cast.

“We are extremely pleased with what this partnership will mean for both Avalon and Craft Cast,” said Mel Kman, President of Avalon. “Although our business will remain the same with no noticeable impact to our key stakeholders, we are very excited to continue servicing our customers as a part of a larger, very capable platform,” added Kman.

About Craft Cast

Craft Cast is a manufacturer of investment castings in a variety of alloys (including stainless steel, aluminum, and others), as well as a provider of value-added machining and finishing services. Craft Cast’s customer base includes original equipment manufacturers (OEMs) in the consumer products, mining, and general industrial product industries. Craft Cast is headquartered in Jackson, Wisconsin and has been a partner company of Keystone Capital since 2008. For more information, visit www.craftcastco.com.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Eric Holter
(847) 236-5353
eholter@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, PEAK Technologies, Inc. (“PEAK”), has completed the acquisition of Catalyst from CDC Global Services. Catalyst is a highly specialized SAP services partner and a leader in the design and implementation of SAP supply chain management solutions. Catalyst is a specialist in various SAP services and applications, including warehouse management, extended warehouse management, task and resource management, and transportation management.

“The PEAK acquisition of Catalyst further demonstrates our commitment to the SAP supply chain management market and greatly strengthens the depth and breadth of resources we can deploy to help our customers enhance the usability and functionality of their SAP supply chain components,” said Ross Young, CEO of PEAK Technologies.

By acquiring Catalyst, PEAK greatly expands its SAP supply chain management services practice by adding some of the most skilled SAP technical and functional consultants in the SAP logistics execution systems market. Catalyst has developed several applications, such as Yard Management Drag and Drop and Cross Carrier Parcel Integration (Catalyst XPS), which expands PEAK’s portfolio of SAP supply chain management offerings.

“We are extremely excited to join forces with an industry leader in PEAK that is committed to building on its SAP supply chain management practice,” said Jim Ferencik, Vice President of Global Services with Catalyst. “Catalyst can now leverage PEAK’s coverage footprint throughout North America and Europe while gaining access to additional capabilities such as the PEAK Automation Controller (PAC) software solution and the host of additional products and services PEAK now brings into the Catalyst portfolio of offerings,” added Ferencik.

Terms of the transaction are not being disclosed.

About PEAK Technologies

PEAK Technologies is a systems integrator of supply chain automation, inventory management and mobility solutions delivering tangible return on investment to some of the world’s largest corporations. PEAK’s primary applications include solutions for warehousing, manufacturing, distribution, and field-based operations. PEAK’s portfolio of solutions and services include business process consulting, SAP supply chain and mobility systems integration, mobile technology professional services, printing/media solutions, and life-cycle support services. PEAK Technologies has locations throughout North America providing a comprehensive “foot print” for national, multi-site life cycle service and support. For more information, visit www.peaktech.com.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Eric Holter
(847) 236-5353
eholter@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, PEAK Technologies, Inc. (“PEAK”), has completed the acquisition of Ryzex, a leading mobile technology solutions company providing advice, uptime, and insight on improving productivity to thousands of enterprise customers. Ryzex, based in Bellingham, WA, has been in business for over 20 years and is one of the largest integrators in the Auto ID industry with over 200 employees, more than 2,000 customers, and a geographic footprint that spans the United States, Canada, and Europe.

“The union of PEAK and Ryzex will combine the scope, scale, and capabilities of two of the industry’s leading integrators into one platform that will provide customers with an unparalleled level of geographic coverage, and an expanded portfolio of solutions and services,” said Ross Young, CEO of PEAK Technologies.

By acquiring Ryzex, PEAK Technologies greatly expands its geographic reach and gains additional capabilities in areas such as mobility managed services, advanced mobile technology support services, and other innovative mobile device offerings. For Ryzex, PEAK’s coverage footprint throughout North America also greatly expands Ryzex’s geographic reach and provides additional capabilities including SAP supply chain integration, onsite break/fix repair services, advanced printer/media offerings, and additional resources focused on WLAN security, management, and professional services.

“Adding Ryzex into the PEAK Technologies portfolio further strengthens our commitment to our customers and business partners. Our combined platform will provide an infrastructure of technical resources, project delivery capabilities, and ongoing mobile/printer device life cycle support services that is unmatched in this industry. Our new platform will help customer’s reduce the risk associated with large-scale project deployments and provide the advice, insight, and support to ensure our customers reach their desired business objectives,” added Young.

Rud Browne, the Founder of Ryzex added, “The focus for Ryzex over the past several years has been on providing leading edge mobile technology deployment and support services for supply chain and field-based operations in North America and Europe. During this period, we had been approached by several prospective partners who wanted to help us build on the value Ryzex had been bringing to the market. The opportunity to partner with PEAK proved to be the most compelling. In addition to providing additional growth capital for the business, PEAK also brought an outstanding and highly complementary infrastructure that had surprisingly little overlap to Ryzex’s already extensive technical expertise and geographic coverage.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

About PEAK Technologies

About Ryzex

Ryzex is the leading expert in deploying and managing enterprise wide mobility solutions both locally and globally. Ryzex advises on and implements world-class solutions utilizing over 20 years of proven best practices, ensures the solution is always up and running for maximum operational uptime, and provides insight so investments continue to perform better. Offerings include mobile worker applications, rugged hardware, device communications, automated data collection with barcode and RFID, networking support, and complete managed services. Ryzex is headquartered in the United States and has offices across Europe and Canada. To date, Ryzex has helped over one million users of mission critical mobile technology across a broad set of markets to get the most from their investment. For more information, visit www.ryzex.com.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Eric Holter
(847) 236-5353
eholter@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed two new platform acquisitions during the fourth quarter of 2011. PEAK Technologies, Inc. (“PEAK”), an integrator of automated identification/data capture (“AIDC”) technologies into supply chain environments, was acquired on October 31, 2011 from an affiliate of Platinum Equity. Less than two months later, Keystone partnered with management to acquire Babcock Eagleton, a pipeline and transmission facilities engineering firm serving the energy industry, from Babcock International Group PLC and renamed the firm Eagleton Engineering, LLC (“Eagleton”).

“A common element in both transactions was the requirement for speed and certainty to closing,” noted Scott Gwilliam, Managing Director of Keystone Capital. “Keystone differentiated itself in both situations with a willingness to close in less than 45 days. We have a longstanding reputation of meeting such tight timelines, and the Eagleton and PEAK transactions only serve to reinforce that reputation.”

Terms of these transactions are not being disclosed. Senior debt financing for each transaction was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Overview: Peak Technologies, Inc.

PEAK is a leading systems integrator of supply chain automation, inventory management, and mobility solutions. PEAK improves the flow of business for enterprises through delivery of innovative supply chain and mobility solutions by helping enterprises plan, design, implement, and maintain systems that ensure customers meet their desired business objectives. PEAK’s portfolio of solutions and services include business process consulting, SAP supply chain and mobility systems integration, mobile technology professional services, printing/media solutions, and life-cycle support services. PEAK offers both on-site and depot repair services to support AIDC technologies and forms handling equipment. The company’s customer base includes Fortune 500 multi-national organizations and mid-market companies across a diverse array of industries. PEAK is based in Columbia, Maryland and employs over 300 employees across North America. More information on PEAK can be found at www.peaktechnologies.com.

“We are thrilled to be a part of the Keystone family of companies,” remarked Ross Young, President & CEO of PEAK. “Keystone’s unique strategy will be well received by all of our business partners at PEAK, and we are looking forward to our continued growth.”

Overview: Eagleton Engineering, LLC

Eagleton is a full service engineering firm offering planning, design, and construction services for transportation systems and facilities used in natural gas and gas liquids, petrochemicals, carbon dioxide, other industrial gases and crude oil. Over the past 45 years, Eagleton has developed a leading reputation for designing and managing the construction of pipelines, terminals, compressor and pump stations, oil and gas production and processing facilities, slug catchers and two-phase flow systems. Eagleton employs approximately 115 employees, residing both at its Houston, Texas headquarters and in the field. More information on Eagleton can be found at www.eagletoninc.com.

“I speak for the entire Eagleton organization when I say that we are truly excited to become an independent firm again, and are looking forward to our renewed focus on growth in our core pipeline engineering business,” commented Duain Cagle, President of Eagleton. “We are confident Keystone is going to be a terrific partner for Eagleton.”

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Eric Holter
(847) 236-5353
eholter@keystonecapital.com

Capsa Solutions, LLC (“Capsa”), a portfolio company of Keystone Capital, Inc. (“Keystone”), recently completed the sale of its Retail Division to Pipp Mobile Storage Systems, a portfolio company of Prospect Partners. The Retail Division of Capsa, which operates as International Retail Services Group (“IRSG”), is the industry leader in hanger-management systems, inventory transfer racks, tables, and carts provided to leading national apparel retailers.

Keystone Capital originally partnered with the management team of IRSG to purchase the Company from Avista Corporation in December 2000. For the first seven years of Keystone’s ownership, IRSG operated as a standalone investment supplying the apparel retail and healthcare markets with its innovative inventory management and transportation products. In April 2008, IRSG merged with MMI Med Carts, a family-owned leader in the long-term care medication storage cart industry, giving IRSG a significant entry into the healthcare industry. Subsequent to the MMI merger, the combined business was renamed Capsa Solutions and operated as the Retail Division (IRSG) and the Healthcare Division (MMI). In November 2009, Capsa acquired Artromick International, the market leader in medication carts and an emerging leader in acute care technology carts, an acquisition which added an Acute Care and International division to Capsa and culminated in an enterprise which was predominantly healthcare oriented.

“The IRSG and Capsa story is a terrific example of the long-term investment strategy Keystone pursues,” remarked Scott Gwilliam, Managing Director of Keystone Capital. “We valued our ten year relationship with IRSG and its great people, and both will be missed. However, we believe IRSG has found a strategic new retail-focused partner in Pipp, and we are looking forward to continue building the new healthcare-focused Capsa. We are in a strong position to execute Capsa’s growth plan both organically as well as through selected add-on acquisitions.”

Keystone Capital and Capsa Solutions are actively seeking acquisitions of businesses supplying products and technologies to the healthcare industry. Capsa’s strategy is to be a market leader within multiple durable healthcare product segments, including (but not limited to) storage, transport, and technology/information management products used “in and around the patient room.” Please contact one of the Keystone team members below with any acquisition or partnership opportunities that might be a fit with this strategy.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Eric Holter
(847) 236-5353
eholter@keystonecapital.com

NEW YORK, April 18, 2011 – Israel Berger & Associates LLC (IBA), a leading consulting and inspection group specializing in building envelope technologies, announced a merger with Viridian Energy & Environmental LLC (Viridian), a leading consulting group specializing in energy efficiency and environmentally responsible design/construction. “We are very excited about this merger with Viridian. This is the first step in our strategy to build the leading building services consulting firm. The combination of IBA and Viridian allows us to integrate our shared expertise in building envelope, energy efficiency, and building commissioning to offer a holistic approach to our customers in these building sciences," says Israel Berger, President of IBA. IBA has been a partner company of Keystone Capital, Inc. since a 2006 recapitalization.

Building designers, developers, owners, and managers will benefit from the combined firm’s technical proficiency in primary building systems that impact energy usage and building operations. Adrian Tuluca, Principal of Viridian Energy & Environmental, offered the following statement: “There is tremendous synergy between energy, green and commissioning; traditionally Viridian’s services, and envelope consulting; traditionally IBA’s services. Both firms have long recognized that fragmentation of these services creates difficulties in achieving optimum results during design, construction and post-occupancy. We are happy to be now part of a larger, integrated group and look forward to delivering to our clients a higher level of integration and quality.”

Israel Berger and Marc Weissbach will continue in their positions of President and COO, respectively, of IBA. Adrian Tuluca will remain the Managing Principal of the combined energy consulting and commissioning practice and will join the Board of IBA. Viridian’s Associate Principals will join IBA’s senior management team and all Viridian employees will remain with the company as part of the transaction. The combined company will employ approximately 120 employees and be headquartered in New York City with offices in Connecticut, Massachusetts, Florida, Nevada, Missouri, and California. For more information, visit IBA's website at www.ibany.com and Viridian’s website at www.viridianee.com.

IBA’s vision is to execute a “roll up” strategy within the building sciences industry that will ultimately reduce gaps within the complex, fragmented specialty consulting industry and offer clients the ability to have a single leader manage related services, thereby ensuring technical excellence, integration, and consistency of delivery. Keystone Capital continues to seek independent, third party providers of architectural or building engineering consulting services with greater than $5 million of revenue as add-on acquisition/growth strategy targets for IBA. Please contact one of the Keystone team members below with any opportunities that might be a fit as a part of this strategy.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed a recapitalization of Costume Gallery, Inc. in partnership with owners Ellen and Richard Ferreira. Costume Gallery is a leading designer, manufacturer and marketer of costumes and related accessories, specifically focused on the global dance recital industry. Costume Gallery’s customer base includes thousands of independent dance studios in both the U.S., as well as over 15 countries worldwide. More information on Costume Gallery can be found at www.costumegallery.net.

Headquartered in Burlington, New Jersey, Costume Gallery has been a leader in the recital costume industry for over 35 years and has been a family owned and operated business for over 60 years. Since joining the company in 1998, the Ferreiras have grown Costume Gallery at an above average growth rate, and have implemented numerous long-term strategic initiatives. “We are extremely excited to be a part of the future of Costume Gallery and are thankful for the unique partnership we have formed with Ellen and Rick Ferreira,” commented Scott Gwilliam, Managing Director of Keystone Capital. “Costume Gallery’s niche market position, impressive management team, and focus on bringing in a long-term, patient capital partner made this a perfect situation for Keystone.”

The transaction represented another Keystone Capital closing in under 45 days from Letter of Intent. Additionally, Costume Gallery is the most recent example within a long history of Keystone’s recapitalizations with skilled owner-operators and talented entrepreneurs. “In Keystone we’ve found the perfect partner to continue Costume Gallery’s long term growth initiatives. We look forward to building the brand together,” remarked Ellen Ferreira, President of Costume Gallery.

Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that Keystone Bakery Holdings, LLC (“KBH”), has been acquired by Maplehurst Bakeries, LLC (“Maplehurst”), a subsidiary of George Weston Limited (“Weston”) (TSX: WN), for a total consideration of approximately $185 million. KBH is a leading national supplier of frozen baked goods to the in-store bakery and foodservice industries and was originally purchased by Keystone and KBH management in early 2001.

Keystone initially acquired Freed’s Bakery, Inc. (“Freed’s”), a leading supplier of frozen, thaw and sell cupcakes to the in-store bakery channel, in 2001 in partnership with the management team and the Streeter family of Manchester, NH. In 2006, the KBH bakery platform expanded with the acquisition of Granny’s Kitchens, Ltd. (“Granny’s”), a leading supplier of both frozen pre-fried and frozen, thaw and sell donuts to the in-store bakery and foodservice channels based in Frankfort, NY. KBH then acquired Heartland Baking (“Heartland”), a manufacturer of frozen, thaw and sell cookies based in Du Quoin, IL, to round out the KBH platform in 2009.

“The Keystone Bakeries exit is a real testament to the long-term, patient capital strategy of Keystone Capital. We partnered with exceptional managers and together executed on a highly focused, disciplined acquisition and organic growth strategy,” said Scott Gwilliam, Managing Director, Keystone Capital, Inc. “We are particularly pleased to be transitioning the Keystone Bakeries business to Maplehurst. We wish our managers, employees and the George Weston organization continued success in the future.”

W. Galen Weston, the Chairman and President of Weston, in announcing the transaction stated that “I am very pleased to welcome Keystone Bakeries and the employees of Freed’s, Granny’s and Heartland to the Weston Group. The combination of Keystone Bakery and Weston’s baking operations in the United States and Canada will allow us to better serve our customers in the North American sweet baked goods sector.”

Keystone Bakeries was advised by investment banking firm William Blair & Company and law firm Kirkland & Ellis LLP.

About George Weston Limited

George Weston Limited is a Canadian public company founded in 1882 and through its operating subsidiaries constitutes one of North America’s largest food processing and distribution groups. Weston has two reportable operating segments: Weston Foods and Loblaw, which is operated by Loblaw Companies Limited. The Weston Foods operating segment is primarily engaged in the baking industry within North America. Loblaw is Canada’s largest food distributor and a leading provider of general merchandise, drugstore and financial products and services.

Contact Information

Scott Gwilliam
(847) 236-5351
sgwilliam@keystonecapital.com

Alex Schneider
(847) 236-5353
aschneider@keystonecapital.com

Jason Van Zant
(847) 236-5354
jvanzant@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Capsa Solutions, LLC (“Capsa”), has acquired the assets of the Mobile Solutions Group of Artromick International, Inc. (“Artromick”) from private equity firm Sterling Partners. Artromick is an industry-leading designer and manufacturer of medication carts, medical carts, and technology carts for the long-term care and acute care industries. Artromick represents the second add-on acquisition Keystone has closed in the preceding two months and was completed in under 40 days from Letter of Intent to closing. The acquisition also represents the fifth acquisition that Keystone has completed since October 2008.

Keystone initially acquired International Retail Services Group (“IRSG”), a leading supplier of storage and material handling products to the retail industry, in 2001. IRSG subsequently acquired MMI Med Carts (“MMI”), a growing manufacturer of medication carts for the long-term care industry, in 2008 to form Capsa. Thus, the acquisition of Artromick represents the second acquisition by Capsa in the past 2 years. “The partnership with Artromick demonstrates Keystone Capital’s long-term and patient investing philosophy as evidenced by our continued investment in the Capsa platform,” said Scott Gwilliam, Managing Director, Keystone Capital, Inc.

Located in Columbus, Ohio, Artromick has a long history of innovative product development and market leadership since its founding in 1972 by J.M. Romick. “Artromick has a history of integrating superior design with the latest technology features to improve the efficiency of care givers at the point of care,” noted Capsa Solutions CEO Dave Burns. “The addition of Artromick to the Capsa family is an absolute win for our healthcare partners. Our spectrum of cart, storage, and mobility solutions fill the needs of almost any healthcare application. Artromick is a strong and healthy brand that will continue to grow as part of Capsa Solutions.”

The combined product lines of Artromick, MMI and IRSG will cover virtually every room of an acute or long-term healthcare facility. “The acquisition of Artromick Mobile Solutions Group by Capsa Solutions creates a significantly stronger healthcare firm for our domestic and international core markets,” said Artromick CEO Paul Guth. “This alliance of products and professionals with extensive healthcare experience will drive new innovation that facilitates accuracy in the delivery of patient care.”

Terms of the transaction were not disclosed. Senior debt financing was provided by The Private Bank and Fifth Third Bank. Mezzanine financing was provided by Midwest Mezzanine Funds.

Capsa remains committed to future acquisitions in the durable healthcare products and equipment industry. However, in order to diversify its end market base, Capsa is also interested in other opportunities to acquire industry-leading suppliers of mobility solutions, material handling solutions, and storage solutions serving alternate end markets, including light manufacturing and assembly.

About Capsa Solutions, LLC

Capsa Solutions, LLC is a leading supplier of carts, storage, shelving, transport and processing solutions for the healthcare, retail, and light manufacturing industries. Capsa Solutions will be comprised of three lines of business, which include IRSG, MMI Med Carts, and Artromick. IRSG, with operations in Itasca, IL, is the market leader in specialized storage and handling solutions sold into the retail, healthcare and light industrial markets. MMI Med Carts, with operations in Los Angeles, CA, is a leading supplier of medication carts for the long-term care industry. Artromick International, with operations in Columbus, OH, is a leading designer and manufacturer of medication carts, medical carts, and technology carts for the long-term care and acute care industries. For more information on Capsa Solutions, please see www.capsasolutions.com.

About Sterling Partners

Sterling Partners is a leading private equity firm with over 25 years of experience partnering with entrepreneurs to build market-leading businesses and generate superior returns. With approximately $4 billion of assets under management, Sterling invests growth capital in industries with positive, long-term trends and provides ongoing support to management through a dedicated team of industry veterans, operators, strategy experts and human capital professionals. Sterling Partners is a leader in education, healthcare and business services and is co-headquartered in Chicago and Baltimore, with additional offices in Mexico City and Delhi. For more information, please visit www.sterlingpartners.com.

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its affiliate, Keystone Bakery Holdings, LLC (“KBH”), has acquired the assets of Heartland Bakery, LLC (“Heartland”). Heartland is a manufacturer of thaw and serve cookies for the in-store bakery, foodservice, and convenience store markets. Heartland joins Freed’s Bakery (“Freed’s”) and Granny’s Kitchens (“Granny’s”) in the KBH family of leading specialty baked goods manufacturers.

The acquisition of Heartland represents the third acquisition by Keystone Bakery Holdings in the bakery industry. Keystone initially acquired Freed’s, a leading supplier of cupcakes to the in-store bakery channel, in 2001 and acquired Granny’s, a leading supplier of donuts to similar channels, in 2006. “The partnership with Heartland demonstrates Keystone Capital’s long-term and patient investing philosophy as evidenced by our continued investment in our bakery platform,” said Scott Gwilliam, Managing Director, Keystone Capital, Inc.

Located in Du Quoin, Illinois, Heartland was founded in 2006 by Steven Scaff and James Mitro. Heartland is recognized for its innovative and high quality products, superior customer service and breadth of seasonal and everyday cookie products. The partnership with KBH will allow Heartland to grow through expanded sales channel reach and operational synergies. “We have a unique opportunity to capitalize on the growth and reputation of both companies by expanding the broad portfolio of products we can provide our customers,” noted Kevin McDonough, President and Chief Executive Officer of Keystone Bakery Holdings.

KBH remains committed to future acquisitions in the wholesale bakery industry, and is currently targeting segments such as muffins, fully finished cakes, and laminated products (danishes, croissants, and pastries). Please contact any member of the Keystone acquisitions team below regarding any acquisition opportunities in the wholesale bakery industry.

About Keystone Bakery Holdings, LLC

Keystone Bakery Holdings, LLC is a leading supplier of sweet baked goods to the in-store bakery, foodservice, and convenience store channels. The operating subsidiaries of Keystone Bakery Holdings include Freed’s Bakery, Granny’s Kitchens, and Heartland Bakery Company. Freed’s is the leading supplier of cupcakes for the in-store bakery channel based in Manchester, New Hampshire. Granny’s Kitchens is the leading supplier of donuts to the in-store bakery, foodservice, and convenience store channels based in Frankfort, New York. Heartland Bakery Company is a specialty supplier of seasonal and everyday cookies for the in-store bakery channel based in Du Quoin, Illinois.

Keystone has a unique approach to the investment business of using its own capital, taking a long-term view of building the business and supporting the operations, even when the return on its investment could be adversely impacted.

Larry Richman

CEO, The Private Bank

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