Keystone Capital Inc.

Who we are

Over 20 years investing patient 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 companies in close partnership with management. We take each investment personally. We do not have a short-term outlook, preferring to exercise the patience and dedication needed to build highly successful companies. We have operating experience, so we can roll up our sleeves alongside 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 build a sustainable, market-leading business thoughtfully and patiently. Our story is just beginning. We are hungry to continue aggressively investing in first-class companies, partnering with great teams, 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 patient, long term capital 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 focus results in quick decisions and certainty to close for sellers which we have consistently demonstrated over the last 25+ years.

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

The Keystone difference

Operating Partnership

Timely and professional execution

Long-term investment horizon

We believe existing management possesses inherent knowledge that is difficult – if not impossible – to replicate. 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 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 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 30 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 of patient capital ensures we and the management team are fully aligned in making the right decisions for the long-term health and success of the business.

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 patient capital means we stick with our companies through good times and bad. We take each investment personally 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 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

Acquisition criteria

Platform investments – EBITDA of $3M - $15M
Add-on investments – company specific; reference individual company profile pages

Company Size

Growth potential (especially through acquisition)
Customer and supplier diversity
Low cyclicality/seasonality
High integrity and quality reputation

Key
Characteristics

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

Management

Engineering and technical services
Professional and technology-enabled services
Business and commercial services
Industrial technology and engineered products
Food and beverage
Healthcare

Areas of
Interest

Majority control investments preferred
- Entrepreneur/owner recapitalization
- Corporate divestitures
- Structured minority investments

Transaction Types

Platform investments – EBITDA of $2M - $15M
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 an intermediary, Keystone’s thoughtfulness, flexibility and patience through a challenging deal process proved extremely valuable in the Granny’s Kitchens transaction. Their strategy and speed to close is highly unique amongst their peer set, and when they say they are going to do something – they do it. I look forward to working with them again in the future.

Paul Schaye

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Jason V.

Andrew C. Wehr

Chief Financial Officer

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Andrew W.

Michael Weston

Senior Associate

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Michael W.

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

Keystone News

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Keystone Capital (“Keystone”) is pleased to announce that its portfolio company Environments for Health Architecture, LLC (“E4H”) has been acquired by the MOREgroup, a partnership of architecture, design, and engineering firms. Terms of the transaction have not been disclosed.

E4H is the largest architectural design and facilities planning firm focused on the healthcare and life sciences markets. E4H has completed over 2,000 projects nationally including community hospitals, for-profit hospitals, ambulatory surgery centers, rehabilitation facilities, medical office buildings, skilled nursing facilities, senior living communities, and research laboratories.

Keystone initially partnered with E4H in 2015 and through organic initiatives and strategic acquisitions expanded into a national firm. E4H represents another example of Keystone’s commitment in investing in the Business and Professional Services sector serving the built environment.

“We are extremely appreciative of our partnership with the E4H management team in building a market leading business” noted David Greer, Managing Director of Keystone. “During our partnership with E4H, we expanded our capabilities and technical expertise to bring state-of-the-art facilities designed to enhance the well-being of our client’s patients, staff, and families. We wish the best to the E4H team on their new chapter with the MOREgroup.”

Dan Morris, Chairman of E4H commented, “Keystone Capital has been a great partner for E4H over the last seven years. With Keystone’s help, we have integrated four add-on acquisitions, which has broadened our core market and accelerated our growth. We worked in partnership with their team to execute on strategic and operational initiatives while driving value for employees, clients, and shareholders.”

Legal services were provided to E4H and Keystone by DLA Piper.

Contact Information

David Greer
(312) 219-7972
dgreer@keystonecapital.com

Sean Lyons
(312) 219-7967
slyons@keystonecapital.com

Keystone Capital ("Keystone") is pleased to announce that its portfolio company Keystone Natural Holdings ("KNH") has been acquired by House Foods Holding USA, the North American subsidiary of House Foods Group Inc.

Keystone Capital established the KNH platform through the acquisition of Nature’s Soy® in 2016, a regional plant-based food manufacturer focused on the ethnic channel. Through three strategic add-on acquisitions and meaningful organic investment, KNH significantly expanded its product offering and channel reach. In 2019, KNH invested in a new manufacturing facility in Folcroft, Pennsylvania to capitalize on organic growth opportunities. The sale of KNH represents another successful outcome for Keystone Capital within its Food & Consumer investment efforts.

“We are proud of the work we have done at Keystone Natural Holdings,” said Chaoran Jin, Managing Director of Keystone Capital. “During our partnership, we invested significantly to expand KNH’s brand presence, manufacturing capacity, product development capabilities, as well as the leadership team in order to provide a broad range of healthy, innovative plant-based food products for grocery, club, and food service customers. We are extremely appreciative of the hard work, dedication, and commitment from the KNH management team in building a market leading business. We wish them the best for their new chapter with House Foods.”

Kenny Sung, Chief Executive Officer of KNH, who will continue to lead KNH, added, “Keystone Capital has been a great partner to work with, helping us successfully expand into additional strategic segments, which has positioned us to better serve our retail and food service customers in the ethnic and mainstream channel. With Keystone Capital’s help, we have integrated three add-on acquisitions, which has broadened our core market and accelerated our growth. We look forward to working with House Foods to continue our growth trajectory.”

Through this acquisition, House Foods will expand its portfolio of value-added tofu and plant-based food products and accelerate its US market expansion plans. The combined company will have eight manufacturing facilities across North America.

Investment banking services were provided to KNH by Whipstitch Capital and legal services were provided to KNH and Keystone by DLA Piper.

Contact Information

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

Brian Chung
(312) 219-7975
bchung@keystonecapital.com

Michael Weston
(312) 219-7982
mweston@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce an investment partnership with Novatio Solutions (“Novatio” or “the Company”). Novatio is a fast-growing hyperautomation consultancy with deep expertise in automation strategy, software implementation, and ongoing support of automation programs. Novatio primarily works in partnership with UiPath and Automation Anywhere, the leading robotic process automation (“RPA”) and intelligent automation software platforms.

Founded in 2015, Novatio has quickly grown into an automation consulting leader, providing its roster of enterprise, healthcare, and SLED (state, local, and education) clients with full-lifecycle automation solutions consisting of process discovery & mining, software implementation & customization, bot development, and ongoing managed support & execution services. Novatio’s differentiated delivery and talent development model is supported by a best-in-class automation technology training program. The Company’s rapidly expanding team includes more than 100 resources across the U.S. and India. For more information on Novatio, visit www.novatiosolutions.com.

“We are delighted to partner with a patient and experienced investor in Keystone Capital to help build on the success Novatio has enjoyed to date,” remarked Gokul Solai, CEO of Novatio. “Intelligent automation is still in its infancy and this partnership is an important step to ensure we will continue to be at the forefront of the industry. We look forward to continuing to develop new and exciting solutions to expand the impact that process consulting and automation can have within our client partners’ organizations.”

Novatio represents a furtherance of Keystone’s investment success in the tech-enabled services sector. “Novatio is exceptionally well-positioned to capitalize on the significant opportunity in the intelligent automation industry,” commented Bill Sommerschield, Managing Director at Keystone Capital. “We are thrilled to partner with Gokul and his team to collaboratively build a preeminent service provider in this dynamic and fast-growing marketplace.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC Bank USA and legal counsel was provided by DLA Piper. Novatio was advised by Equiteq in connection with this transaction.

Contact Information

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

Michael Weston
(312) 219-7982
mweston@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce it has launched Tribute Baking Company (“Tribute” or the “Company”), a market leading producer of authentic New York style kettle-boiled, hearth-baked bagels and specialty cake products sold into the in-store bakery, club store, foodservice, and convenience store channels. Tribute was formed through the combination of three family-owned wholesale bakeries: Always Bagels (“Always”), Original Bagel (“Original”), and Hometown Foods (“Hometown”).

For the last 25+ years, Always, Original, and Hometown have led the wholesale bagel market in quality. Together, Tribute employs more than 300 people and operates out of a collective 190K square feet across four SQF Level II facilities in New York, New Jersey, Pennsylvania, and Miami. The Company sells its product in a par-baked and fully baked frozen format to some of the most notable retailers and foodservice distributors on the East Coast, nationally, and internationally. The combined footprint of Tribute provides the advantage to its customers of four dedicated facilities, creating a resilient supply chain in the bagel category.

Anthony Pariti, Co-Founder of Always, noted, “We are thrilled to begin our partnership with Keystone. We see tremendous opportunity to build on the strong foundation developed over the last several decades. Keystone’s differentiated approach of patiently investing alongside management with a focus on long-term value creation is a great fit for our employees and our customers.”

“Partnering with Keystone and Always opens exciting opportunities for our collective businesses,” added Dave Harris and Bruce Levenbrook, President and CEO of Original, respectively. “Our combined decades of experience and legacy of quality are unparalleled in today’s marketplace. Additionally, Keystone’s deep understanding of the wholesale bakery business will provide us with an experienced strategic partner as we work together to achieve our goals for organic growth and complementary acquisitions.”

The formation of Tribute also represents a continuation of Keystone’s partnership with Hometown Foods, a multigenerational wholesale bakery based out of Miami. Hometown’s scaled manufacturing footprint brings substantial additional bagel manufacturing capacity and a portfolio of specialty cake products to the broader platform.

Keystone’s bakery experience stretches back to the early 2000s through Keystone Bakeries Holdings (“KBH”), starting with a partnership with Freed’s Bakery, a market leader in fully finished cupcakes sold to the in-store bakery channel. Over the next decade, Keystone executed two transformative add-on acquisitions in the donut and cookie segment, driving significant growth prior to exiting the business to Weston Foods (TSX: WN) in 2010. Kevin McDonough, formerly the President of KBH, will lead Tribute going forward.

“Keystone is excited to partner with these terrific family businesses to continue building on their legacy of quality and authenticity,” commented Chaoran Jin, Managing Director at Keystone Capital. “We see the same amount of opportunity in the wholesale bakery space that we saw 20 years ago and are eager to execute on our organic growth initiatives and targeted acquisitions.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC Bank USA and Capital One NA, and legal counsel was provided to Keystone by Honigman LLP. Original Bagel was advised by Billow Butler & Company in connection with this transaction.

Contact Information

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

Brian Chung
(312) 219-7975
bchung@keystonecapital.com

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Michael Weston
(312) 219-7982
mweston@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce that its portfolio company VDA, Inc. (“VDA”), a market leader in providing technical consulting and inspection services to the elevator and vertical transportation industry, has acquired Sierra Consulting Group (“Sierra”).

Sierra represents the first add-on acquisition completed by VDA since initially partnering with Keystone. “Sierra adds significant capability to VDA’s mandated inspection and modernization consulting capabilities,” commented Jason Van Zant, Managing Director of Keystone. “We look forward to having Joe Caracappa and his leadership team join the exceptional leadership team at VDA.”

Completed in November 2021, VDA represents Keystone’s fifth platform investment in the building sciences consulting and engineering services industry. VDA is actively seeking add-on acquisition opportunities in the building sciences consulting and inspection industry. Parties with knowledge of relevant potential investment opportunities are encouraged to contact Keystone.

About VDA

Operating over a history spanning 40+ years, VDA is headquartered in East Hanover, NJ and has grown to include 30+ offices across the country. VDA specializes in all types of vertical transportation services, including elevator/escalator/lift modernization, new construction, maintenance evaluations, mandated inspections, and general consulting for a variety of end markets. For more information on VDA, visit www.vdassoc.com.

About Sierra

Sierra Consulting Group is a full-service elevator and escalator consulting company, providing inspection witnessing, advisory and project management services to building owners and property management firms overseeing residential and commercial buildings throughout metropolitan New York. Founded in 2004 by industry veteran Joseph Caracappa, the Company provides technical expertise on various job types ranging from witnessing inspections as an impartial third party, to evaluating and managing comprehensive vertical transportation modernization projects.

Contact Information

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

Sean Lyons
(312) 219-7967
slyons@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce it has partnered with two leading environmental consulting services providers, Pinchin Ltd. (“Pinchin”) and PM Environmental, LLC (“PM”).

Pinchin and PM have been collectively operating for 70+ years, providing environmental risk management, engineering, and health & safety consulting services to corporate real estate owners, developers, end users, and government agencies in the United States and Canada.

Headquartered in Mississauga, Ontario, Pinchin operates out of 34 offices nationally across Canada. PM, headquartered in Lansing, Michigan, is a regional market leader serving clients out of twelve offices in Michigan and the Southeastern U.S. For more information, visit www.pinchin.com and www.pmenv.com.

"This is an exciting first step in our goal of building the predominant North American services provider in the building and land market for all phases of the real estate lifecycle,” noted Jeff Grossi, CEO of Pinchin. “We are fortunate to have found likeminded partners in both PM and Keystone”.

Mike Kulka, Co-Founder and CEO of PM, added: “With this partnership, we see a significant opportunity to better serve our clients through greater geographic reach and a broader set of capabilities”.

All members of the Pinchin and PM executive teams will remain in leadership positions of the combined company. Joining forces will provide both Pinchin and PM’s clients with broader geographic coverage and enhanced capabilities across the real estate lifecycle.

“We are thrilled to be partnering with the teams at Pinchin and PM,” commented David Greer, Managing Director of Keystone Capital. “Keystone has significant experience in the engineering and technical services space, and we believe there is a considerable opportunity to continue building on the great legacies that both of these firms have established.”

Keystone will be actively seeking acquisition opportunities in the environmental consulting and engineering services industry. Parties with knowledge of relevant potential investment opportunities are encouraged to contact Keystone.

Terms of the transactions are not being disclosed. Senior debt financing was arranged by CIBC Bank USA and legal counsel was provided by Honigman LLP and Goodmans LLP.

Contact Information

David Greer
(312) 219-7972
dgreer@keystonecapital.com

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Matt Blanks
(312) 219-7987
mblanks@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce the formation of Integra Testing Services (“Integra”), a market leader in the testing, adjusting, and balancing (“TAB”) of commercial HVAC systems as well as related testing and commissioning services for the built environment.

Integra was formed through initial partnerships with Fulton & Associates (Mentor, OH) and Neudorfer Engineers (Seattle, WA). Fulton, founded in 1996, is a leader in the Ohio market and is led by Dominic Mazzolini. Neudorfer, founded in 1970, is a leader in the Pacific Northwest market and is led by Bill Neudorfer. For more information on Integra, visit www.integratesting.com.

Dominic Mazzolini will lead the Integra platform as Chief Executive Officer. Additionally, Integra is pleased to announce that Travis Nichols has joined as Chief Financial Officer. Mr. Nichols was previously the Chief Financial Officer of Rocore Holdings, a former Keystone portfolio company exited in 2017.

Integra is also pleased to announce the subsequent acquisition of International Test & Balance (“ITB”), a market leader in TAB services in Chicago and Michigan. ITB is led by Chairman Gary Tarazi and CEO Christopher Yacu.

“I am tremendously excited about the coming together of Fulton and Neudorfer and for the potential of the Integra platform,” commented Mr. Mazzolini. “The Integra platform will allow other TAB & ‘built environment’ companies to join us in providing our services to an even larger customer base,” commented Mr. Neudorfer, President of Neudorfer Engineers.

The formation of Integra represents a continuation of Keystone’s established expertise in the built environment testing and field services market. “Integra is well-aligned with Keystone’s historical and current investment experience in the commercial services industry, and we are thrilled by the opportunity to partner with this management team,” commented Jason Van Zant, Managing Director of Keystone Capital.

Integra is actively seeking acquisition opportunities in built environment testing and inspection services as add-on acquisitions. Parties with knowledge of relevant potential investment opportunities are encouraged to contact Keystone.

Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC Bank USA and legal counsel was provided by Honigman, LLP.

Contact Information

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

Matt Blanks
(312) 219-7987
mblanks@keystonecapital.com

Keystone Capital (“Keystone”) is pleased to announce that its portfolio company Movilitas (“Movilitas”) has been acquired by Engineering USA, the North American subsidiary of the Engineering Group. Terms of the transaction have not been disclosed.

Movilitas is an industry leader in digital supply chain and digital manufacturing consulting services and solutions. Keystone initially invested in Movilitas in 2013. Throughout the ownership period, Keystone and Movilitas partnered to significantly grow the business both organically and through strategic acquisitions in the U.S. and Europe. Movilitas represents another example of Keystone’s commitment in investing in the Business and Professional Services sector.

“We are extremely appreciative for the hard work, dedication and commitment from the Movilitas management team in building a market leading business and delivering a great outcome for shareholders” commented Scott Gwilliam, Managing Partner of Keystone. “We wish the Movilitas management team the best for their new chapter.”

“During our hold period, we worked with Movilitas to expand and enhance the management team, including bringing in CEO Ross Young, who Keystone had previously partnered with at Peak-Ryzex. We are proud of the work we accomplished along with the Movilitas management team to accelerate organic growth and execute strategic acquisitions to expand market share, geographic reach and service offerings to our enterprise clients,” said Chaoran Jin, Managing Director of Keystone.

Ross Young, Chief Executive Officer of Movilitas added, “The team at Keystone has been a great business partner for Movilitas. They found the perfect balance of providing guidance paired with autonomy that enabled our management team to successfully drive the agreed upon strategic and financial initiatives. With Keystone’s counsel, we also found the right strategic partner in Engineering Group as part of the Industries eXcellence Global division for the next chapter of our growth.”

Investment banking services were provided to Movilitas and Keystone by Stifel, Nicolaus & Company, Inc., and legal services were provided to Movilitas and Keystone by Honigman LLP.

About Movilitas

Movilitas is a global consulting services and solutions company helping enterprises transform their business to meet the demands of today's dynamic economy. Movilitas is recognized as a long-standing trusted SAP partner and strategic advisor for digital supply chain transformation. The company’s industry expertise and accelerators for SAP solutions and applications, such as Movilitas.Cloud, help businesses to future-proof operations, maintain compliance and realize new growth opportunities.

Contact Information

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

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

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce that its portfolio company, ClearWater Solutions, LLC (“CWS”), has acquired Midwest Water Operations, LLC (“MWO”), a Missouri-based provider of outsourced operations & maintenance services for water and wastewater facilities. The combined business serves municipalities and private utilities in 12 states with approximately 400 employees across the greater Southeastern United States.

“This partnership is an incredible opportunity for our organizations to enhance our combined service offerings and draw on a larger footprint to better serve these communities which we are so passionate about,” Steve Cawood, CEO of CWS commented. “We believe this merger will accelerate our organic expansion and provide additional career development and growth opportunities for our people,” remarked Rick Ailiff, President of CWS.

“We are thrilled to be joining forces with the people at CWS. It has been a pleasure getting to know one another throughout this process, and we see many similarities in how these two organizations operate,” noted Ben Kuenzel, President of MWO. “MWO has historically been focused on O&M for private water and wastewater utilities. With CWS, not only can we serve private utilities across a broader geographic footprint, but we also see tremendous opportunity to serve municipal clients in our key states,” added Terry Merritt, Vice President of MWO.

“We are incredibly excited about the joint vision CWS and MWO share – to become a leading operations & maintenance company that serves as a true extension of the communities in which we live” said Erik Gernant, Vice President of Keystone. “This combination helps ensure both organizations have the resources and scale to achieve their vision, ambitiously grow, provide opportunities for their employees, and better serve their communities in new and exciting ways.”

Terms of the transaction are not being disclosed. Legal counsel was provided to CWS and Keystone by Honigman LLP.

Contact Information

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

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

Sean Lyons
(312) 219-7967
slyons@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce it has completed an investment partnership with VDA, Inc. (“VDA” or “the Company”), a market leader in providing technical consulting and inspection services to the elevator and vertical transportation ("VT") industry.

VDA’s client base includes leading real estate owners, developers and end users across the United States. Operating over a history spanning 40+ years, VDA is headquartered in East Hanover, NJ and has grown to include 30+ offices across the country. VDA specializes in all types of vertical transportation services, including elevator/escalator/lift modernization, new construction, maintenance evaluations, mandated inspections, and general consulting for a variety of end markets. For more information on VDA, visit www.vdassoc.com.

“Our partnership with Keystone could not have been completed at a better time,” remarked Mike Smith, CEO of VDA. “We believe there is great opportunity for further growth and consolidation in our market, and that with Keystone, VDA is well positioned to play a leadership role in this consolidation.”

Rob Cuzzi, President of VDA, added: “We envision expanding VDA’s capabilities beyond our core services into complimentary consulting services valued by our clients. With the long-term and patient model that Keystone espouses, we will be even better positioned to capitalize on these opportunities.”

VDA represents Keystone’s fifth platform investment in the building sciences consulting and engineering services industry. “VDA is an ideal fit with Keystone’s experience in the building sciences and inspection industries,” commented Jason Van Zant, Managing Director of Keystone Capital. “We are proud to be associated with VDA, a long-standing leader in the vertical transportation consulting market, and look forward to further our shared goal of building on VDA’s successful legacy.”

VDA will be actively seeking acquisition opportunities in the building sciences consulting and inspection industry as add-on acquisitions. Parties with knowledge of relevant potential investment opportunities are encouraged to contact Keystone.

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

Contact Information

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

Sean Lyons
(312) 219-7967
slyons@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce that its portfolio company, MERGE, has acquired Perkuto, a leading provider of marketing operations services and software solutions primarily within Marketo and Workato software platforms. The addition of Perkuto expands MERGE’s marketing operations and marketing technology platform capabilities while also deepening the combined company’s partnership with Adobe. The combined company will have more than 725 employees across eight locations in North America.

Perkuto is a premier marketing operations agency that helps enterprise and high-growth organizations such as Facebook, Adobe, Sony Biotechnology and Siemens, expand marketing capacity, implement Marketo best practices, and resolve integration challenges with Workato. Perkuto is an Adobe Platinum Partner with Marketo Engage Specialization and a Workato Gold Partner. In addition to the company’s service offerings, Perkuto has developed two proprietary software products, Jeto and Digesto, which augment the core Marketo software. The company is headquartered in Montreal and has employees throughout Canada and the United States. For more information on Perkuto, please visit Perkuto.com.

The acquisition bolsters MERGE’s offerings within marketing technology platforms as well as adding additional expertise within the technology client vertical. In turn, MERGE offers Perkuto and its client partners increased creative, executional and technology development capabilities. Combined, the entities offer a 360-degree view of multiple markets with deep expertise within the healthcare, financial services, technology, and consumer verticals.

“Getting marketing technology platforms to work in concert is a challenge for senior marketing and digital executives,” said Patrick Venetucci, Chief Executive Officer of MERGE. “Uniting Perkuto’s Marketo expertise with MERGE’s content management system expertise elevates our ability to merge storytelling and technology such that it converts traffic to transactions for clients.”

All members of the MERGE and Perkuto executive teams will remain in leadership positions with Patrick Venetucci serving as Chief Executive Officer of the combined company, which will operate under the MERGE brand.

MERGE is an independent, integrated marketing and technology development agency with deep domain expertise in the healthcare, financial services, and consumer verticals. MERGE combines historically marketing-oriented capabilities (brand strategy, performance marketing, omni-channel campaign execution, content creation, programmatic media, and reporting & data visualization) with a strong technology and development-focused offering (digital strategy, customer experience & design, marketing stack software implementation, and custom software development). The combined business will be headquartered in Chicago with additional offices in Atlanta, Boston, Denver, Kansas City, New York, Los Angeles, and Montreal. For more information please visit MERGEworld.com.

Terms of the transaction were not disclosed. Legal counsel was provided to MERGE and Keystone by Honigman LLP. Perkuto was advised by MergerTech Group, LLC.

Contact Information

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

Brian Prendergast
(312) 219-7968
bprendergast@keystonecapital.com

Keystone Capital Management, L.P. (“Keystone”) is pleased to announce that its portfolio company, MERGE, has acquired Blue Moon Digital, Inc. (“Blue Moon Digital”), a leading performance marketing, data science, and digital agency based in Denver. This acquisition significantly enhances MERGE’s performance marketing and data science capabilities and deepens the firm’s retailer and pharma vertical expertise. The combined company will have more than 650 employees across seven locations in the United States.

Blue Moon Digital is a leading performance marketing, data science, and digital agency with a focus on driving traffic and transactions for their clients. They bring a full suite of performance marketing offerings ranging from digital strategy, paid media, email, SEO, analytics, data science and marketplaces. Blue Moon Digital is also a two-time partner of the year for Domo with deep data capabilities around media mix modeling, attribution, and demand forecasting. They have an impressive client roster including: Astellas, Kate Spade, the North Face, and TransUnion among others. For more information on Blue Moon Digital, please visit Bluemoondigital.co.

The acquisition bolsters MERGE’s offerings within performance marketing and data science as well as adding additional expertise within the consumer vertical, particularly within apparel. In turn, MERGE offers Blue Moon Digital and its client partners increased creative, executional and technology development capabilities. Combined, the entities offer a 360-degree view of multiple markets with deep expertise within the healthcare, financial services, and consumer verticals.

“At a time when businesses are rapidly adopting an e-commerce mindset, Blue Moon Digital’s strategic performance marketing expertise augments MERGE’s digital capabilities and expands our consumer practice,” said Patrick Venetucci, Chief Executive officer of MERGE. “Fusing Blue Moon Digital’s command of e-commerce and data analytics with MERGE’s content and technology capabilities facilitates our ability to drive traffic and transactions for clients in a powerful way and differentiates MERGE as an agency partner.”

“Blue Moon Digital is a terrific complement to MERGE providing advanced performance marketing and data science capabilities to an impressive roster of world-class, industry-leading clients. We look forward to watching their success as they collaborate to serve clients across their spectrum of storytelling and technology capabilities.” commented Bill Sommerschield, Managing Director at Keystone.

All members of the MERGE and Blue Moon Digital executive teams will remain in leadership positions with Patrick Venetucci serving as Chief Executive Officer of the combined company, which will operate under the MERGE brand.

MERGE is an independent, integrated marketing and technology development agency with deep domain expertise in the healthcare, financial services, and consumer verticals. MERGE combines historically marketing-oriented capabilities (brand strategy, performance marketing, omni-channel campaign execution, content creation, programmatic media, and reporting & data visualization) with a strong technology and development-focused offering (digital strategy, customer experience & design, marketing stack software implementation, and custom software development). The combined business will be headquartered in Chicago with additional offices in Atlanta, Boston, Denver, Kansas City, New York, and Orange County. For more information, please visit MERGEworld.com.

Terms of the transaction were not disclosed. Legal counsel was provided to MERGE and Keystone by Honigman LLP. Blue Moon Digital was advised by Garros Group, LLC and Fortis Law Partners, LLC. Please see the link to our external press release.

Contact Information

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

Brian Prendergast
(312) 219-7968
bprendergast@keystonecapital.com

Keystone Capital Management, LP (“Keystone” or the “Firm”) is pleased to announce that it has held a first and final close of its debut institutional fund, Keystone Capital Fund II, LP (“Fund II”), with $420 million of capital commitments. In line with its history of investing personal capital and its commitment to alignment of interests across all stakeholders, the principals of Keystone collectively represent the largest single investor in Fund II.

Founded in 1994 by Kent Dauten and Scott Gwilliam, Keystone has historically operated as an entrepreneurial holding company, utilizing the personal capital of its partners to acquire high quality, market-leading businesses. Over the course of its history, Keystone has completed over 110 acquisitions across a wide range of sectors including engineering & technical services, tech-enabled services, commercial services & engineered products, and food & beverage manufacturing. Keystone intends to continue the strategy it has employed over the past twenty-seven years with the goal of creating long-term value by creatively building great businesses.

“The decision to raise outside capital was a natural step in our evolution and we have been truly humbled by the support we have received from our new investors,” noted Kent Dauten, Chairman of Keystone. “We are thrilled to be partnering with such a reputable group of like-minded investors who support our long-term, patient capital strategy.”

“We are incredibly excited about the future of Keystone,” added Scott Gwilliam, Managing Partner. “With Fund II, we look forward to continuing our approach of providing operational and growth-oriented support to business owners and management teams, while also serving as a thoughtful, diligent steward of third-party capital.”

Keystone has completed its first two platform investments for Fund II through its recent partnerships with Inspire11 and ClearWater Solutions. The Firm has also been active with its existing portfolio, completing ten add-on acquisitions in the fourth quarter of 2020 and recently announcing the sale of two platform investments, Peak-Ryzex and JOBS Group.

Kirkland & Ellis LLP provided legal counsel on the fundraise for Fund II.

Contact Information

Kent Dauten
(312) 219-7970
kdauten@keystonecapital.com

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

Keystone Capital, Inc. is pleased to announce that its portfolio company Peak-Ryzex, Inc. (Peak) has been acquired by Sole Source Capital, LLC. Terms of the transaction have not been disclosed.

Keystone originally invested in Peak in October 2011, a leading provider of automatic identification, data capture (“AIDC”) and factory automation solutions. Keystone and Peak subsequently completed six add-on acquisitions over the past nine years significantly growing the size of the business and establishing it as the industry leader. Peak represents another successful investment for Keystone within its Commercial and Industrial (C&I) Services efforts.

Founded in 1981, Peak delivers innovative automated data collection solutions to Fortune 500 customers along with small and medium-sized businesses, providing critical technology that allows businesses to become more efficient and responsive. Peak is a technology systems integrator of barcoding, data collection, and factory automation equipment, delivering innovative digital supply chain and mobile workforce solutions across North America and Europe. Peak is headquartered in Columbia, MD and has seven locations in the US and two in the U.K.

“We are extremely appreciative for the hard work, dedication and commitment from the Peak management team in building a market leading business and delivering a successful outcome for shareholders” commented Chaoran Jin, Managing Director of Keystone. “We wish the Peak management team the best for their new chapter with Sole Source.”

Juliann Larimer, Chief Executive Officer of Peak-Ryzex added, “Over the last 9+ years Keystone has been a true partner to Peak in every sense of the word, from sourcing acquisitions through helping to shore up our operations, enabling us to drive record profits and growth. As important, together we have built a “customer-first” culture that is ready to take the business to the next level, and our successful exit is a reflection of that partnership in action.”

Investment banking services were provided to Peak and Keystone by Stifel, Nicolaus & Company, Inc., and legal services were provided by Honigman LLP.

Contact Information

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

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

Brian Chung, CFO
(312) 219-7975
bchung@keystonecapital.com

Brian Prendergast, Associate
(312) 219-7968
bprendergast@keystonecapital.com

Keystone Capital is pleased to announce that its portfolio company JOBS Group (JOBS) has been merged with Valcourt Building Services (Valcourt), which recently received a growth equity investment from private investment firm Littlejohn & Co. Terms of the transaction have not been disclosed.

Keystone formed JOBS in June 2019 after its initial investment in Jobs Building Services, LLC, a leading commercial window cleaning and facility maintenance provider in Houston, TX. Keystone subsequently completed three add-on acquisitions to JOBS over the course of the next 18 months, approximately doubling the size of the business. JOBS represents another successful investment for Keystone within its Commercial and Industrial (C&I) Services efforts.

Based in Houston, TX, JOBS specializes in high-rise façade maintenance including window cleaning and waterproofing, metal surface maintenance, elevator cab interior refurbishment, and other related property maintenance services. The JOBS portfolio of companies operates under the AMST, April Building Services, EDS, JOBS Building Services, and Scottie’s Building Services trade names, primarily in Texas and the Carolinas.

Established in 1986 and headquartered in McLean, VA, Valcourt provides a full range of recurring and essential exterior building maintenance services that require vertical access capabilities, including window cleaning, waterproofing and safety services to Class-A commercial offices, high-rise residential condominiums, hospitality businesses, healthcare facilities and other clients. Valcourt received an investment from Littlejohn & Co. LLC in January 2021.

“We are extremely happy with the outcome of the JOBS investment,” commented Jason Van Zant, Managing Director of Keystone. “We wish Eric Crabb and the JOBS management team the best for their new chapter with the Littlejohn and Valcourt teams.” Keystone has retained a minority equity interest in the combined Valcourt / JOBS business.

Eric Crabb, Chief Executive Officer of JOBS Group added, “Keystone was a terrific partner for JOBS and our partnership with Keystone was strong. We are excited, however, to work with the experienced team at Valcourt and bring together leading building services brands in the U.S.”

Investment banking services were provided to JOBS and Keystone by Truist Securities, and legal services were provided to JOBS and Keystone by Honigman LLP.

Contact Information

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

Kevin Overby, Vice President
(312) 219-7966
koverby@keystonecapital.com

Andrew Wehr, Vice President
(312) 219-7980
awehr@keystonecapital.com

Brian Prendergast, Associate
(312) 219-7968
bprendergast@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed a strategic investment in Inspire11 (“Inspire” or “the Company”), a leading digital transformation and technology innovation consultancy with more than 200 employees across offices in Chicago, Minneapolis, and Atlanta as well as offshore development centers in Macedonia and Kosovo.

Through a unique combination of strategy and development expertise, Inspire helps clients better leverage modern technology infrastructure, data science, and experience design to transform their business. The Company’s capabilities span the full lifecycle of a client’s digital transformation journey and include digital strategy consulting, infrastructure & data architecture implementation, custom development, data science & monetization, and digital product ideation & creation. Inspire delivers its solutions to Fortune 500 clients across market sectors with specific expertise in healthcare, financial services, and food & beverage. In 2020, Inspire11 was recognized in the Inc. 5000 list as the #10 fastest growing business, and #1 fastest growing services business, in the United States over the past three years.

Alban Mehmeti, Co-Founder and CEO, noted, “We are thrilled to begin our partnership with Keystone. Our shared entrepreneurial culture and Keystone’s patient investment philosophy are a perfect fit for our people and clients.”

“Keystone’s deep understanding of our business and their financial support will enable us to pursue exciting new growth initiatives and continue to capitalize on the broad market shift towards adopting modern technology infrastructure and data monetization”, added Hans Nelson, Co-Founder and President.

“Keystone is delighted to partner with Inspire11 to help them build on their incredible success bringing a truly differentiated approach to technology consulting to an enviable group of clients,” commented Bill Sommerschield, Managing Director at Keystone Capital. “We see tremendous opportunity ahead for Inspire to continue to scale and develop through internal growth and talent development initiatives, as well as select complementary acquisitions.”

Co-Founders Alban Mehmeti, Hans Nelson, and Kevin Schaffer will continue to lead the business forward. For more information on Inspire11, please visit inspire11.com.

Terms of the transaction are not being disclosed. In connection with this transaction, senior debt financing was provided by Wintrust Bank, legal counsel was provided to Keystone by Honigman, and legal counsel was provided to Inspire11 by Jones Day.

Contact Information

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

Michael Weston
(312) 219-7982
mweston@keystonecapital.com

Keystone Capital is pleased to announce that its portfolio company JOBS Group has completed two add-on acquisitions, Scottie’s Building Services (“Scottie’s”) and Exterior Diagnostic Services (“EDS”). Headquartered in Houston, JOBS is a leading provider of commercial building maintenance and restoration services, including window cleaning, metal and stone maintenance, elevator cab interior refurbishing, and façade maintenance/waterproofing.

Established in 1986, Scottie’s and EDS are headquartered in Raleigh, NC. Scottie’s is a leading provider of commercial window cleaning, pressure washing, glass & metal restoration, and high dusting services. EDS is a leading provider of waterproofing and façade restoration services for commercial and industrial applications and will complement JOBS’ exterior restoration services group. Scottie’s and EDS will significantly expand the geographic footprint, service capabilities, and management depth of JOBS.

JOBS Group is actively seeking bolt-on acquisition opportunities within niche areas of the commercial facilities services and maintenance industry. Targeted services include window cleaning, pressure washing, façade maintenance, waterproofing, metal and architectural surface maintenance, elevator maintenance, and parking surface maintenance. Parties with knowledge of acquisition opportunities that may fit the JOBS Group strategy are encouraged to contact Keystone Capital.

“We’re excited about the prospects of a ‘one plus two equals four’ combination in the case of JOBS, Scottie’s, and EDS,” commented Jason Van Zant, Managing Director, Keystone Capital. “This transaction is a critical step on our path to building a national commercial façade and surface maintenance platform and adds significantly to the depth of our capabilities and team.”

Contact Information

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

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Brian Prendergast
(312) 219-7968
bprendergast@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed an investment partnership with Jobs Building Services, LLC (d/b/a “JOBS” or “the Company”), a Houston-based niche facilities services provider focused on commercial properties.

Founded in 1970, JOBS operates under the “JOBS” and “AMST” trade names and specializes in high-rise façade maintenance (including window cleaning and waterproofing), metal surface maintenance, elevator cab interior refurbishment, and other related property maintenance services. JOBS has built a market-leading position in the Houston market for its services based on a reputation for safety, reliability, and quality of work. The Company counts the area’s leading property management firms, building owners, and corporations as its clientele. For more information on JOBS, please visit www.jobs-amst.com.

Keystone and JOBS are pleased to announce two exciting new events since the completion of our platform investment in June 2019. In December, JOBS completed the acquisition of April Building Services, Inc. (“April”), a leading provider of façade maintenance services in the Dallas-Ft. Worth market. Founded in 1988, April is led by Donald Brown (President) and Tony Schiber (Vice President).

Secondly, Keystone and JOBS are pleased to welcome Eric Crabb as the Company’s new Chief Executive Officer effective June 1, 2020. Mr. Crabb has a wealth of facilities services experience, having most recently served as Executive Managing Director with Cushman & Wakefield. Prior to his role at Cushman & Wakefield, Mr. Crabb served as CEO of QSI Facilities which was acquired by Cushman & Wakefield in January 2019. Mr. Crabb also has over 10 years of facility services experience in managerial roles at ABM Industries.

Current CEO and Founder LaRue Coleman will be assuming the role of Chairman of the Board, in which he will continue to have strategic involvement with key customers as well as the Company’s acquisition strategy. “There is great opportunity for consolidation in our industry,” noted Mr. Coleman. “As such, our goal was to find a financial partner and management structure to enable our company to lead this consolidation but also to protect what has made our company successful. We believe we have found an ideal partner in Keystone and an ideal CEO to lead us through this next phase in Eric Crabb. We’re also pleased to welcome Don, Tony and the entire April team to our platform and excited about the potential synergies that this partnership can create for our collective client base.”

“I am thrilled to be joining JOBS and am looking forward to helping continue the legacy that LaRue and his team have built over the last 50 years. JOBS has an existing leadership team with a deep breadth of both industry and company experience, having them remain a part of the next phase of transformation will be incredibly instrumental. Additionally, having an equity partner like Keystone, who understands the industry and has a proven track record of building great companies, will be a significant advantage. I started my career in Houston almost 20 years ago, so getting a chance to come back and work with the all the outstanding CRE individuals in the market is a real bonus for me personally, ” commented Mr. Crabb.

“Keystone is excited to partner with LaRue Coleman, Eric Crabb and the team at JOBS,” commented Jason Van Zant, Managing Director of Keystone Capital. “JOBS has a stellar reputation in their market which we are committed to protecting. At the same time, we see great opportunity to grow the business substantially, and the entire management team shares that goal.”

JOBS is actively seeking bolt-on acquisition opportunities within niche areas of the commercial facilities services and maintenance industry. Parties with knowledge of potential investment opportunities in these segments are strongly encouraged to contact Jason Van Zant or Kevin Overby at Keystone Capital.

Terms of these transactions are not being disclosed. Senior debt financing has been provided by CIBC Bank USA and legal counsel was provided by Honigman LLP.

Contact Information

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

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Andrew Wehr
(312) 219-7980
awehr@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its portfolio company, MERGE, has completed the acquisition of the Sandbox Group (“Sandbox”), a leading independent, full-service, strategic and digital agency based in Chicago. The combination forms one of the largest independent agencies in North America with more than 600 employees in seven locations across the United States and Canada.

Keystone initially acquired MERGE, a premium creative technology agency, in December 2018. The Company’s capabilities include business & digital strategy, marketing execution, analytics, experience design, technology development, and media services. MERGE delivers customer engagement solutions across market sectors with specific expertise in healthcare and financial services. MERGE is headquartered in Chicago with additional offices in Boston and Atlanta. For more information on MERGE, please visit Mergeworld.com.

Sandbox is a leading independent, full-service agency which helps companies accelerate growth and drive business transformation. Sandbox has an impressive client roster which includes: Abbott Diabetes, American Express, Boston Scientific, Sprint, and LG among others. The agency operates from five locations across the United States and Canada: Chicago, New York, Kansas City, Toronto, and Orange County. For more information on Sandbox, please visit Sandbox.com.

For several years MERGE and Sandbox have been on parallel paths building agencies that promote health, wealth, and happiness. Combined, the entities offer a true 360-degree view of multiple markets with deep expertise within the healthcare and financial services verticals. Joining forces will provide all clients stronger advanced digital capabilities, specifically in areas such as performance marketing and experience design.

“Many CMOs are seeking to simultaneously elevate their brand and drive business growth, but efforts are often disjointed and diametrically opposed. The partnership of MERGE and Sandbox balances brand building and demand building marketing capabilities as a remedy to those challenges,” said Patrick Venetucci, Chief Executive Officer of MERGE. “Uniting our complementary digital capabilities, MERGE is now even better positioned to help catapult our clients to the top of their categories.”

“Sandbox is a terrific complement to MERGE rounding out our healthcare vertical with deep pharma expertise, providing advanced performance marketing capabilities, and adding shopper marketing through their work with Sprint and LG. We look forward to aligning the agencies more closely in the coming months and watching their success as they collaborate to serve clients.” commented Bill Sommerschield, Managing Director at Keystone.

All of the members of the MERGE and Sandbox executive teams will remain in leadership positions with Patrick Venetucci serving as Chief Executive Officer of the newly combined company, which will operate under the MERGE brand.

Terms of the transaction were not disclosed. Legal counsel was provided to MERGE and Keystone by Honigman Miller Schwartz and Cohn, LLP. Sandbox was advised by Lincoln International in connection with this transaction.

Contact Information

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

The PharmaLex Group (“PharmaLex”), a leading specialist provider of development consulting and scientific affairs, regulatory affairs and pharmacovigilance, has completed the acquisition of Arbour Group, LLC (“Arbour” or “the Company”) from Keystone Capital, Inc. (“Keystone”). Terms of the transaction were not disclosed.

Arbour is a leading provider of regulatory compliance solutions for the global life sciences industry. The Company is headquartered in Chicago, Illinois, and has sales offices throughout North America along with global regulatory delivery centers in Dubai, UAE and Manila, Philippines.

“Arbour Group is a well-recognized service provider with excellent reputation in the regulatory compliance market”, explained Dr Thomas Dobmeyer, CEO PharmaLex. “Their specialist expertise will enable us to drive business in the US whilst allowing us to expand our quality management and compliance service line worldwide. In addition it supports one of our key focus of developing connected health solutions to help customers drive efficiency gains within their own operations,” he added.

Senior management team members Alexander Patterson, Ahsan Raza, and Christopher McNally will be continuing in their current operating roles and as shareholders in Arbour post-closing. “The merger with PharmaLex provides Arbour the ability to deliver broad-spectrum regulatory and pharmaceutical service offerings, which our global customer base is demanding as their operating environments become increasingly complex,” noted Alexander Patterson, Founder and CEO of Arbour Group. “We are delighted to be partnered with an organization that shares the values and market reputation, which we have maintained with our customers throughout our 23-year history.”

“We are pleased with the outcome of the Arbour/PharmaLex transaction, as we believe that these organizations will be a terrific fit in a rapidly evolving industry. We wish both teams the best of luck with the combination,” noted Jason Van Zant, Managing Director, Keystone Capital.

Legal counsel was provided to Keystone and Arbour by Honigman Miller Schwartz and Cohn, LLP, and Fairmount Partners served as Keystone and Arbour’s financial advisor. McDermott Will & Emery LLP served as PharmaLex’s legal counsel, and Rödl Langford de Kock LLP provided tax and accounting advice.

Contact Information

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

Keystone Capital, Inc. (“Keystone”) is pleased to announce the formation of Foundation Dental Partners (“Foundation”), an Alpharetta, Georgia based dental support organization which has been founded to provide doctor-owners with a unique, dentist-friendly partnership alternative. Keystone is excited to build Foundation alongside CEO Adam Ditto who brings 15+ years of dental management experience.

As part of its formation, Foundation has partnered with two general dentistry practices in metro Atlanta and South Carolina which will continue to operate under their respective brand names while leveraging strategic, administrative, and back office support from Foundation. Keystone and Foundation are investing heavily in corporate infrastructure while pursuing additional practice acquisitions in attractive markets across the Southeastern U.S.

“We are thrilled to begin our partnership with Keystone,” noted Adam Ditto, CEO of Foundation. “This has been a unique experience building Foundation from day one and Keystone’s patient, long-term approach to investing personal capital has been the perfect fit for Foundation and truly resonates with our partner practices.”

“We are excited to get Foundation off the ground with two attractive practices,” commented Kevin Overby, Vice President at Keystone Capital. “We, Adam, and the rest of the Foundation team see a tremendous opportunity to provide an alternative to the traditional DSO model and believe we have created a business that will be the ‘partner of choice’ for doctor-owners.”

Foundation is actively seeking acquisitions of single and multi-location, private-pay general dentistry practices with an initial focus on the Southeastern U.S. Parties with knowledge of potential opportunities are encouraged to contact Keystone Capital.

Terms of the transaction are not being disclosed. Senior debt financing was provided by Wintrust Bank and legal counsel was provided to Keystone by Honigman LLP.

Contact Information

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

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

Marlton, New Jersey (October 30, 2019) – Santa Claus and Cherry Hill Programs have partnered to launch a new website www.WhereIsSanta.com, an innovative online resource to help guests pinpoint the perfect location for their visit with Santa.

“WhereIsSanta.com is part of the company’s new marketing strategy and significant investment in the growth of our business; an investment unlike any of its kind in the 60-year history of our company,” shared Ed Warchol CEO at Cherry Hill Programs.

WhereIsSanta.com now makes reserving a time with Santa Claus and pre-purchasing a photo package online easier than ever with one-click access to Santa’s FastPass, the company’s innovative online reservation platform.

“Cherry Hill Programs designed WhereIsSanta.com to provide guests with all the tools necessary to navigate Santa’s busy schedule and make the most of this holiday tradition,” said Matt Windt, Cherry Hill Programs’ chief marketing officer. “Santa’s arrival in some areas comes as early as November 1^st, while in other areas he delays his arrival while he tends to the elves and his reindeer at the North Pole. We’ve built WhereIsSanta.com to be the one-stop shop for our guests to find a convenient location to visit Santa Claus.”

During each visit, a Cherry Hill Programs associate will capture professional photos of the experience, which will then be available for purchase in print & digital photo packages to make one-of-a-kind memories, to cherish for a lifetime.

Warchol added, “Our new programs and the build-out of WhereIsSanta.com illustrates our commitment to growing our business and helping customers find Santa. Our team of 10,000 associates are excited to welcome guests at one of our nearly 900 locations nationwide.”

Please note: Walk-in visits with Santa are always welcome. Reservations are optional and available at select locations.

About Cherry Hill Programs

Cherry Hill Programs is the industry-leader in experiential photography. In partnership with nearly 900 signature shopping and hotel destinations across North America, Cherry Hill Programs delivers more than 10 million magical experiences annually with authentic Santas and Easter Bunnies for the young and young-at-heart. Cherry Hill Programs (CHP) delivers unforgettable memories, captured with high-resolution digital images that guests cherish year after year. Delivering a magical experience. Every time.

Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed the acquisition of Lane Power & Energy Solutions, Inc. (“LPES” or “the Company”), a leading provider of underground hydrocarbon storage solutions for petrochemical facilities, midstream operators, and governmental agencies.

The LPES management team deploys 40 years’ experience and deep construction expertise to provide turnkey Engineering, Procurement, and Construction (EPC) services tailored to specific client needs. From preliminary studies and initial siting to the construction and commissioning of power and energy facilities, LPES solves complex operational challenges for efficient power delivery and product storage. They work to provide the technical expertise, equipment, and construction know-how to successfully deliver projects around the world. Michael Tritt, President of LPES, along with Executive Vice President Tim Reichwein, will continue to lead the talented team. For more information on LPES, please visit www.lanepes.com .

Mike Tritt and Tim Reichwein noted, “We are thrilled to begin our partnership with Keystone Capital. We see tremendous opportunity to build on the strong foundation we have developed over many years. Keystone’s unique approach to patiently investing their personal capital alongside management with a focus on long-term value creation is the perfect fit for our employees and our clients. In addition, Keystone’s deep understanding of construction and engineering service businesses will provide us with an experienced strategic partner to help achieve our goals for organic growth and complementary acquisitions.”

“Keystone is excited to partner with the experienced team at LPES to continue building on their success serving clients with differentiated hydrocarbon storage solutions” commented David Greer, Managing Director at Keystone Capital. “We and management see a substantial opportunity to further enhance our differentiated capabilities, expand our service offerings, and broaden our geographic reach through internal growth initiatives as well as targeted acquisitions.”

Terms of the transaction are not being disclosed; legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP.

Contact Information

David Greer
(312) 219-7972
dgreer@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed an investment partnership with Hometown Foods USA, a manufacturer of bagels and cake products sold to in-store bakeries, club stores, and the foodservice channel.

Operating over a history spanning ~25 years, Hometown Foods USA is currently run by the 4^th generation of the Schwartzberg family and is based in Miami, Florida. Its product offering includes traditional Mrs. W’s Wonderlicious™ bundt cakes, New York style bagels, indulgent crème cakes, crumb bundt cakes, and loaf cakes. The Company supplies their high-quality products to some of the largest club store and grocery chains in the country. For more information on Hometown Foods USA, please visit www.hometownfoodsusa.com.

“Joining forces with Keystone will provide us with a greater level of resources and capabilities to serve our client partners and bring Mrs. W’s Wonderlicious™ bundt cakes and our other high-quality bakery products to an even wider audience – all while preserving our unique culture and unwavering commitment to baking quality and innovation.” noted Troy Schwartzberg, President of Hometown Foods USA.

Commenting on the deal, Chaoran Jin, Managing Director of Keystone, stated, “We are excited to partner with the Schwartzberg family and continue the legacy they’ve built at Hometown Foods. We see a great opportunity to further enhance Hometown’s customer reach, product capabilities as well as channel expansion through organic growth and strategic acquisitions.”

Keystone has reunited with Kevin McDonough who will operate as Executive Chairman and Strategic Advisor to Hometown Foods USA. Kevin most recently served as the President of Weston Foods Frozen and Biscuit Businesses and prior to that he was the President of Keystone Bakeries Holdings, LLC (“KBH”). Weston Foods acquired KBH, Keystone Capital’s bakery platform, in 2010. Kevin noted “It’s exciting to again partner with Keystone to build a new platform in Bakery and I’m looking forward to working with Troy and the entire Hometown Foods team.”

Keystone and Hometown Foods USA will actively seek acquisition opportunities in the bakery space. Parties with knowledge of potential investment opportunities in these segments are encouraged to contact Keystone Capital.

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

Contact Information

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

Keystone Capital continues to see strong growth in new investment activity in 2019 following a record year in 2018. As a result, Keystone Capital is pleased to announce the following promotions and staffing updates!

Kevin Overby Promoted to Vice President

Kevin Overby has recently been promoted to Vice President after joining Keystone as an associate in 2016. Kevin has played a leadership role in three platform investments as well as several add-on acquisitions since joining the firm. Kevin has supported the continued transformation of our plant-based foods business, Keystone Natural Holdings, through the execution of three add-on acquisitions and multiple organic growth initiatives. Kevin is also deeply involved with Keystone’s most recent platform investment, KENDELL. With this promotion, Kevin will continue to focus on identifying new investment opportunities and driving the growth and performance of Keystone’s partner companies.

Tyler Collingbourne

Tyler Collingbourne joined Keystone Capital in late 2018 as an Associate. Tyler’s primary focus is in the identification, sourcing, and evaluation of investment opportunities and supporting the Keystone team and its partner companies. Since joining Keystone, Tyler has been involved in Keystone’s investment in MERGE as well as in the recent acquisition of a food products platform. Prior to Keystone, Tyler worked as an investment banking analyst at TM Capital Corp. focused on middle-market mergers and acquisitions advisory services.

Jennifer Maes

Jennifer Maes joined Keystone in April 2019 as an Accounting Manager. Her primary focus will be working with Keystone’s finance team, with a specific responsibility for Keystone’s internal accounting support. Prior to joining Keystone, Jennifer worked at GTCR, where she focused on investor relations activities as well as portfolio analysis. She also previously worked at PricewaterhouseCoopers as a Senior Tax Associate. Jennifer is a Certified Public Accountant and holds a Master of Accountancy from DePaul University and a B.B.A. in Accounting from Benedictine University.

Brian Prendergast

Brian Prendergast joined Keystone Capital in July 2019 as an Associate. Brian’s primary focus is in the identification, sourcing, and evaluation of investment opportunities and supporting the Keystone team and its partner companies. Previously, Brian worked as an investment banking analyst in the technology group at William Blair & Co. Brian graduated from the University of Illinois at Urbana-Champaign with degrees in Finance & Accountancy.

Contact Information

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Tyler Collingbourne
(312) 219-7967
tcollingbourne@keystonecapital.com

Jennifer Maes
(312) 219-7981
jmaes@keystonecapital.com

Brian Prendergast
(312) 219-7968
bprendergast@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its portfolio company, Cherry Hill Programs, has completed the acquisition of Photogenic, a leading provider of souvenir photography to premier tourist attractions across the United States. Photogenic is headquartered in Chicago, IL.

Keystone initially acquired Cherry Hill Programs, the market leader in providing mall-based holiday photography services and products, in December 2015. Cherry Hill has been managing on-premises Santa and Easter Bunny photography programs since 1961. Under Keystone’s ownership, Cherry Hill’s footprint has grown from 325 to 900+ mall locations across North America. The company is headquartered in Marlton, NJ. For more information on Cherry Hill, please visit cherryhillprograms.com.

Photogenic is a leading provider of souvenir photography services to premier tourist attractions across the United States. Photogenic offers a photography solution that integrates seamlessly with its venue customers’ operations, enhancing the visitor experience and opening a new revenue stream for the venue. CEO, Steve Craig, began operating at Photogenic’s flagship location, Chicago’s Navy Pier Centennial Wheel, in 2002, and has since expanded the company’s presence to tourist attractions and boat tour operations across the United States, including Willis Tower, Entertainment Cruises, The Gateway Arch, The Alamo, Virginia Aquarium & Marine Science Center, Museum of Science & Industry, Phoenix Zoo, and Shedd Aquarium. Steve will remain with Photogenic leading the souvenir photography division. For more information on Photogenic, please visit PhotoGenicInc.com.

The transaction brings together leaders in both the mall-based holiday photography and souvenir photography industries. Cherry Hill and Photogenic have each fostered cultures of operational excellence in their respective sectors, which leads to a natural alignment of values and strategic vision. Management looks forward to working collaboratively to continue delivering a best-in-class customer experience to both our mall and tourist attraction partners.

“Providing a unique and memorable experience is key to attracting visitors to mall and tourist attraction locations alike,” said Ed Warchol, CEO of Cherry Hill. “Steve and Photogenic share our philosophy that the visitor experience must be world-class which requires seamless operations and state-of-the-art imaging technology with caring and attentive employees. We welcome Steve and the Photogenic team to the Cherry Hill family.”

“I’m excited about Photogenic’s future as a part of Cherry Hill Programs”, said Steve Craig, CEO of Photogenic. “In bringing these two businesses together, we are committed to maintaining the entrepreneurial spirit and guest-first approach that the company was founded upon, while tapping into additional resources from Cherry Hill to better serve our tourist attraction partners and their guests as we continue to expand our portfolio of venue locations across North America.”

Terms of the transaction are not being disclosed. Legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP in connection with this transaction.

Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed an investment partnership with KENDELL Doors & Hardware, Inc. (“KENDELL” or “the Company”), a value-added distributor of door openings, door hardware and related access control products for institutional and commercial applications in the built environment.

Operating over a history spanning nearly 80 years, KENDELL is a leading door opening solutions specialist in the Minneapolis/St. Paul metropolitan market. KENDELL provides a host of value-added services, including design, specification, engineering, installation, inspection and pre-installation services to its client base of leading general contractors and institutions. In addition to its Minneapolis headquarters, KENDELL has established regional domestic offices in Winona, MN; Rochester, MN; Mankato, MN; Madison, WI; and Des Moines, IA. KENDELL also recently established a global initiative with the launch of Kendell International, operating out of offices in Dubai, UAE; Muscat, Oman; and Doha, Qatar. For more information on KENDELL, please visit www.kendelldrs.com.

“Our partnership with Keystone could not have been consummated at a more opportune time,” noted John Katter, CEO of KENDELL. “We believe there is great opportunity for further growth and consolidation in the global security and access control market, and that KENDELL is well positioned to play a leadership role in this consolidation. With the long-term, patient and unique model that Keystone contributes to our organization, we will be even better positioned to capitalize on these trends.”

To complement its organic growth plans, KENDELL announced the acquisition of Washington Architectural Hardware (“WAH”) in April 2019. The acquisition of WAH expands KENDELL’s reach into the fast-growing Pacific Northwest region and complements product offerings.

“Without a doubt, Keystone is looking forward to our partnership with John Katter and the team at KENDELL,” commented Jason Van Zant, Managing Director of Keystone Capital. “We, John, and the rest of his team see a substantial opportunity to build a leader in this industry utilizing actionable organic growth initiatives as well as targeted strategic acquisitions.”

Keystone and KENDELL will be actively seeking acquisition opportunities in the security door/door hardware distribution industry as well as in the electronic access control/integration industry. Parties with knowledge of potential investment opportunities in these segments are encouraged to contact Keystone Capital.

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

Contact Information

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

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Keystone Natural Holdings (“KNH”), a portfolio company of Keystone Capital, Inc. (“Keystone”), is pleased to announce the completion of its acquisition of the WestSoy® tofu, seitan, and tempeh businesses from The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial”). The acquisition did not include the WestSoy® plant-based beverage business, which has been retained by Hain Celestial.

KNH is a leading plant-based, better-for-you food company with operations in the United States and Canada. The company’s authentic and health-conscious products from storied brands such as Nature’s Soy®, Franklin Farms™, and Superior Natural™ are proudly sold through mainstream and ethnic channels via retail, mass market, natural, specialty, and food service outlets. The company continues to actively pursue strategic acquisitions to further expand its portfolio of innovative products and better serve consumers seeking alternative proteins for all meal occasions. Please visit www.keystonenatural.com for more information.

This acquisition marks KNH’s third in the past 18 months and provides KNH with additional product capabilities as well as expanded manufacturing capacity in its existing tofu product line. All employees at the WestSoy® facility in Boulder, Colorado have been retained to continue to drive growth and product innovation. “We are excited to welcome WestSoy®’s exceptional people and better-for-you products to KNH,” said Kenny Sung, CEO of KNH. “Our strategy has been to focus on delivering innovative, high-quality, healthy plant-based food to the market. The WestSoy® acquisition is a great fit with that strategy.”

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.

Contact Information

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

Brian Chung
(312) 219-7975
bchung@keystonecapital.com

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its portfolio company, CONSOR Engineers, has completed the acquisition of Structural Grace. With Structural Grace’s proven and talented team of engineers, inspectors, and surveyors as a part of the CONSOR family, CONSOR continues to enhance its resume and expertise in bridge and transit projects and establishes a foundation for future expansion throughout the Western US.

CONSOR is a North American transportation and water resources engineering firm providing services including planning and design, structural assessment, and construction services. The firm was created in 2018 when four entrepreneur-led businesses came together with the vision of building an engineering firm with the scale to win high-profile projects on the national stage while staying true to their entrepreneurial roots and maintaining their commitment to provide exceptional service to their clients and local communities. With more than 40 offices across the US and Canada, CONSOR is approaching 700 employees including more than 135 professional licensed engineers and was recently ranked #134 on ENR’s 2019 list of the top 500 design firms. The company continues to actively pursue like-minded business leaders to expand and strengthen its geographic footprint and diversify into complementary services. Please visit www.consoreng.com for more information.

Structural Grace is an Arizona-based engineering firm specializing in bridge and transit projects. Through its 20-year history, Structural Grace has established itself as a reputable player in the Arizona marketplace, providing design, construction management and inspection, and construction staking services to its public and private clients. The addition of Structural Grace greatly strengthens CONSOR’s Western US presence and adds strong talent and leadership to CONSOR’s growing team. CONSOR is committed to building around the Structural Grace team and legacy to establish a leading presence in Arizona and the greater Western US. Please visit www.structuralgrace.com for more information.

“We are extremely pleased to welcome Structural Grace to the CONSOR family,” commented Scott Gwilliam, Managing Partner of Keystone Capital. “From day one, it was apparent that Structural Grace was the ideal platform for our launch into Arizona. The combination of a strong presence in Phoenix and Tucson, a reputation for superior client and community service, and an employee-centric culture made them the perfect addition to our team at CONSOR.”

“In selecting a partner for Structural Grace, it was imperative that we find a company with compatible business values, a company dedicated to employee development and client-service,” remarked Claudia Perchinelli, Principal and Co-founder of Structural Grace. “We have found that in CONSOR and look forward to the opportunities to better serve our clients and communities in a bigger way than we could before.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by a consortium led by CIBC, and legal counsel was provided to CONSOR by Honigman LLP. Structural Grace was advised in this transaction by Morrissey Goodale LLC.

Contact Information

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

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

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its portfolio company, Merge, has completed the acquisition of Beam, a premier experience design, digital marketing, and technology consultancy based in Boston.

Keystone initially acquired Merge, a premium creative technology agency, in December 2018. The Company’s capabilities include business & digital strategy, creative advertising, marketing execution, content creation, analytics, custom technology development, and media services. Merge delivers customer engagement solutions across market sectors with specific expertise in healthcare. For more information on Merge, please visit Mergeworld.com.

Beam is an experience design and digital marketing consultancy. Beam exists to make frictionless, fantastic, and effective digital experiences and help their clients win in a data-driven, customer-centered world. Core services provided by Beam include opportunity identification, experience strategy and design, CRM, and marketing/sales/analytics platform development. Current clients include Fidelity Investments, Boston Consulting Group, AMG, Charter Communications, and TPG/Beaver-Visitec, among others. For more information on Beam, please visit beamland.com.

The transaction bolsters the company’s offerings in experience strategy and design, CRM, and platform development. In turn, Merge offers Beam and its client partners increased creative and technology depth as well as robust media and contact planning capabilities. Both Merge and Beam bring extensive experience in the healthcare, financial services, travel and leisure, and consumer products sectors. The successful collaboration between the two companies on a number of clients over the past year led naturally to this partnership.

“Engaging experiences are what attract customers and differentiate businesses today.” said Patrick Venetucci, CEO of Merge ”While features and functionality can be easily copied by competitors, a superior experience is difficult to replicate—and Beam excels at creating frictionless, innovative experiences. We are delighted to welcome Beam to the Merge family.”

“Beam nicely complements Merge’s existing capabilities enhancing our experience design, strategy, and platform development capabilities. We are excited to watch the already successful collaboration between the two agencies flourish now that they are under a common flag.” commented Bill Sommerschield, Principal at Keystone Capital.

Terms of the transaction are not being disclosed. Legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and Beam was advised by Palazzo in connection with this transaction.

Contact Information

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

Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed a partnership with MERGE (“MERGE” or “the Company”), a marketing and technology services agency with more than 270 employees across offices in Chicago, Boston, and Atlanta.

MERGE is an integrated agency combining strategy, creativity, and technology to address clients’ business challenges and customer engagement needs. The Company’s capabilities include business & digital strategy, brand development, creative advertising, digital marketing execution, digital design & content creation, data analytics, custom technology development, and media services. Merge delivers omni-channel solutions across market sectors with specific expertise in healthcare. Ron Bess will be named Executive Chairman and will remain as CEO of MERGE. Patrick Venetucci, a 30-year industry veteran with previous global executive roles at Leo Burnett Worldwide and Dentsu Aegis, has joined the agency as CEO partnering with Ron to lead the business forward together. For more information on MERGE, please visit mergeworld.com.

Ron Bess and Patrick Venetucci, CEOs of MERGE, noted, “We are thrilled to begin our partnership with Keystone Capital. We see tremendous opportunity to build on the strong foundation developed over the past two years. Keystone’s unique approach to patiently investing their personal capital alongside management with a focus on long-term value creation is the perfect fit for our employees and our clients. In addition, Keystone’s deep understanding of marketing and technology-enabled services will provide us with an experienced strategic partner to help achieve our goals for organic growth and complementary acquisitions.”

“Keystone is excited to partner with the talented team at MERGE to continue building on their success serving clients at the intersection of marketing and technology” commented Bill Sommerschield, Principal at Keystone Capital. “We and management see a substantial opportunity to further enhance MERGE’s differentiated capabilities, end-market expertise, and client-centric service approach through internal growth and talent development initiatives as well as targeted acquisitions.”

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 MERGE was advised by JEGI in connection with this transaction.

Contact Information

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

Keystone Capital is pleased to announce that its portfolio company E4H Architecture, LLC (“E4H”) has completed a merger with RSG Architects, LLC (“RSG”). Terms of the transaction are not being disclosed.

E4H is a leading design, architecture, planning and consulting firm focused exclusively on the healthcare industry. The firm has 160 healthcare planners and architects in offices across the United States and has collectively completed more than 6,500 healthcare projects over the past four decades. The E4H portfolio includes over $6 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. In 2016, E4H was ranked by Modern Health as the largest architecture firm focused exclusively on the healthcare market. Please visit www.e4harchitecture.com for more information.

RSG is a niche design, architecture and planning firm focused on the healthcare industry based in Chantilly, Virginia. RSG was founded by principals John Scoggin, Jeremy Bartz and Richard Whitaker and is a leader in the D.C./Northern Virginia area. RSG complements E4H’s strategy of adding regional leaders to the platform and realizing synergies across a national base of clients and projects.

“We are extremely pleased about the E4H/RSG transaction and what it will do for our collective platform,” remarked Jason Van Zant, Managing Director of Keystone Capital. “As one of Keystone’s growing platforms in the A/E space, E4H has tremendous momentum as the market leader in healthcare architecture, and this transaction only reinforces it.”

“We’ve built a strong practice in the Mid-Atlantic region and are excited to take our work to the next level by becoming part of a national firm that’s doing award winning healthcare design,” said John Scoggin, Principal, RSG Architects. “We are looking forward to offering E4H’s expertise and enhancing our capacity for our healthcare clients throughout the Mid-Atlantic region.”

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

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 Arbour Group, LLC (“Arbour” or “the Company”).

Arbour, based in Oakbrook Terrace, Illinois, is a leading provider of regulatory compliance services for the global life sciences industry. Arbour specializes in the areas of software validation, packaged compliance solutions, and software testing/auditing to ensure client compliance with applicable global regulatory bodies such as the U.S. FDA and the EU EMA (European Medicines Agency). Arbour partners with name-brand clients in the pharmaceutical, biotechnology, and medical device fields both domestically and internationally.

Arbour was originally founded in 1997 as a spin-out of accounting and tax advisory firm AM&G. In addition to its headquarters in the U.S., Arbour maintains sales offices throughout North America and international locations in Dubai, UAE and Manila, Philippines. For more information on Arbour, please visit the company’s website at www.arbourgroup.com.

“We are excited about the potential for our partnership with Alex Patterson and the management team at Arbour Group,” commented Jason Van Zant, Managing Director at Keystone Capital. “Arbour is another great example of our continued focus on partnering with specialized technology enabled consulting and professional services firms. The growth and consolidation of the global regulatory compliance market, particularly in life sciences, will present ample opportunities for Keystone and management to expand this platform.”

Senior management team members Alexander Patterson, Christopher McNally, and Ahsan Raza will be continuing in their current roles and as significant investors in Arbour post-closing. Mr. Patterson, President and CEO of Arbour, noted: “Arbour’s success over the past 20 years as a privately held company made Keystone a logical choice as a potential partner given their long-term, growth orientation. Keystone’s relevant experience with businesses like Arbour, including other regulatory compliance oriented businesses such as Greeley and Movilitas, was appealing to us and we are looking forward to the opportunity to grow our business with them.”

Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC, legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP, and Arbour Group was advised by Scott-Macon Investment Banking in connection with this transaction.

Contact Information

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

Keystone Capital, Inc. (“Keystone”) is pleased to announce that its portfolio company, Keystone Natural Holdings, LLC (“KNH”), has completed its acquisitions of J.P. Veggies, Inc. (“VeggieLand”) and Superior Tofu Ltd. (“Superior”). VeggieLand and Superior join Nature Soy in KNH’s portfolio of leading manufacturers of healthy, plant-based protein products.

Keystone initially acquired Nature Soy, a Philadelphia-based producer of high-quality soy and vegetarian food products, in June 2016. Nature Soy uses non-GMO ingredients and proprietary formulas to create tofu, soy milk, and rice noodles with unique and desirable flavor profiles. The Company supplies specialty retail and foodservice customers primarily on the East Coast and throughout the Midwest. For more information on Nature Soy, visit www.naturesoy.com.

VeggieLand is a leading manufacturer and distributor of meatless veggie burgers and appetizers. Founded in 1994 and based in Parsippany, New Jersey, VeggieLand has developed a diverse and growing portfolio of healthy meatless products sold into retail and foodservice channels through the Franklin Farms and Jens & Marie brands as well as private label. The partnership with VeggieLand will provide KNH with a broader product portfolio, greater channel reach, and expanded product innovation capabilities. For more information on VeggieLand, visit www.veggieland.com.

Superior Tofu is a Vancouver-based manufacturer and supplier of tofu, soy milk, and other soy-based products. Founded in 1982, Superior has an established, loyal base of specialty and mainstream retail and foodservice customers throughout Canada. With the unique combination of its authentic tofu-making heritage and commitment to world-class food safety, Superior is a natural fit alongside Nature Soy. For more information on Superior Tofu, visit www.superiortofu.com.

The combined business will continue to be led by Kenny Sung, CEO of KNH. Existing management teams at VeggieLand and Superior have been retained to continue driving growth across the platform. “These two acquisitions further enhance our ability to innovate and produce authentic, great tasting and healthy products,” said Kenny. “We are looking forward to providing a broader selection of complementary products across our collective customer base.”

“We are extremely excited about the continued development of our plant-based protein platform through both organic growth and strategic acquisitions,” commented Chaoran Jin, Managing Director of Keystone. “Keystone is committed to investing further in this natural, better-for-you segment.”

Terms of the transactions are not being disclosed. Senior debt financing was provided by Wintrust Bank and legal counsel was provided to Keystone by Honigman Miller Schwartz and Cohn, LLP. Tully & Holland, Inc. advised VeggieLand and CCC Investment Banking advised Superior Tofu in connection with these transactions.

Contact Information

Brian Chung
(312) 219-7975
bchung@keystonecapital.com

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

Kevin Overby
(312) 219-7966
koverby@keystonecapital.com

Keystone Capital, Inc. ("Keystone"), a Chicago-based private investment firm, is pleased to announce that its portfolio company Rocore Inc. (“Rocore”) has been acquired by funds advised by Triton, a leading European private investment firm. Terms of the transaction have not been disclosed.

Rocore is a manufacturer of industrial heat exchangers and provider of heat exchanger repair services. The company’s products consist primarily of highly engineered radiators, heat exchangers and cooling products which are sold into a wide variety of markets including on/off highway, petrochemicals, rail, and power generation. Rocore represented Keystone’s fourth successful exit of a highly engineered industrial products business, following the prior exits of Polymicro Technologies (2007), Judson Technologies (2008), and Atlas Die (2017). For more information on Rocore, please visit www.rocore.com.

“The Keystone and Rocore teams partnered to expand the service offering and drive into new markets. We are pleased that our patient, long term investment approach has created such a positive outcome for us and our management partners,” commented David Greer, Managing Director at Keystone Capital. “We greatly enjoyed our time with the Rocore team and are excited for them in their next chapter with Triton.”

Over the course of Keystone’s investment in Rocore, substantial enhancements in segmentation, go-to-market strategy, and capital efficiency were completed. In addition, Keystone assisted Rocore with the acquisition of CTI Industries, a leader in shell and tube heat exchanger repair services, in 2015.

“It’s a bittersweet moment as Rocore leaves a nine year relationship with Keystone, who worked alongside us to build the successful business we have today but also sees us moving into a new and exciting chapter for the company,” remarked Stuart Eden, CEO of Rocore. “Businesses are built on people, and that’s something Keystone truly understands.”

Rocore and Keystone were represented by Lincoln International in the transaction. Legal advice was provided by Honigman Miller Schwartz & Cohn LLP.

About Keystone Capital

Keystone was founded in 1994 with the goal of acquiring high quality, market-leading niche businesses. Unlike a traditional private equity firm utilizing a fund-based investment model, Keystone operates more like an entrepreneurial holding company – utilizing the personal capital of its partners rather than outside third-party capital, capitalizing its investments with conservative capital structures, and with its principals actively involved in supporting the management teams of its portfolio companies. 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 primary offices are located in Chicago, Illinois with a small office in Shanghai, China. More information can be obtained from our website at www.keystonecapital.com.

Contact Information

David Greer
(312) 219-7972
dgreer@keystonecapital.com

Keystone Capital, Inc. ("Keystone"), a Chicago-based private investment firm, is pleased to announce that its portfolio company Capsa Solutions, LLC (d/b/a Capsa Healthcare or “Capsa”) has been acquired by Levine Leichtman Capital Partners (“LLCP”). Terms of the transaction have not been disclosed.

Capsa is a leading provider of mobile workstations, medication management products, and pharmacy automation solutions for healthcare settings worldwide. The Company’s workflow solutions improve efficiency and effectiveness for over 3,000 customers, including leading health systems, senior care communities, and major retail and institutional pharmacies. Capsa is headquartered in Portland, Oregon and has additional production facilities in Columbus, Ohio and Agua Prieta, Mexico.

“Keystone’s success partnering with Capsa’s management team to build a market leading healthcare technology and equipment company is another terrific example of Keystone’s patient, long-term investment philosophy at work,” commented Scott Gwilliam, Managing Partner of Keystone Capital. “We wish the management team and Levine Leichtman the best with the business and are proud to have been partnered with Capsa for the past 17 years.”

Capsa was the culmination of a 17-year investment horizon for Keystone, during which sales and EBITDA increased 13-fold through a combination of organic growth and add-on acquisitions. The business originally began with Keystone’s purchase of IRSG Holdings in 2000, followed by the acquisitions of MMI Med Carts (2008), Artromick International (2009), Kirby Lester (2014), and Rubbermaid Healthcare (2015). Capsa is led by CEO Andrew Sherrill and a talented management team across the business who will continue to lead Capsa moving forward.

“The success we’ve experienced at Capsa would not have been possible without Keystone’s unwavering support of our team as we sought to build Capsa with an eye always towards our long-term goals,” remarked Sherrill. “The alignment of interest Keystone’s investment approach created with management made Keystone an ideal partner for us during this phase of our growth.”

Capsa was represented by Harris Williams & Co. in the sale of the business. Legal advice was provided by Kirkland & Ellis LLP and Honigman Miller Schwartz & Cohn LLP.

About Keystone Capital

Keystone Capital is a private investment firm which operates with the goal of acquiring high quality, market-leading niche businesses and partnering with these businesses over a long-term horizon, where appropriate. Unlike a traditional private equity firm utilizing a fund-based investment model, Keystone utilizes the personal capital of its partners rather than outside third-party capital, capitalizes its investments with conservative capital structures, and engages actively in supporting the management teams of its portfolio companies. Keystone has completed over 25 platform investments in its history, supported by over 70 add-on acquisitions. Keystone’s primary offices are located in Chicago, Illinois. More information can be obtained from our website at www.keystonecapital.com.

Contact Information

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

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