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

As it should be, Keystone expects their portfolio companies to run their businesses, yet are willing to step in and assist where they can bring value, whether that involvement relates to assessing strategic opportunities or focused improvement projects. Keystone is a truly unique firm with an investment philosophy tied to true long-term partnerships.

Stuart D Eden

CEO/President, Rocore holdings

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

Investment Date: January 2016

Business Overview
CONSOR is a North American transportation and water engineering and inspection 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 providing exceptional service to their clients and local communities. With more than 60 offices across the US and Canada, CONSOR has more than 1,200 employees including more than 250 professional licensed engineers.

CONSOR Engineers Website

Acquisition Areas of Interest

Transportation engineering and inspection firms in the Western, Mountain, Southeastern, and Mid-Atlantic states
Water-wastewater and water resources engineering specialists
Rail/transit engineering and inspection specialists
Traffic engineering and ITS specialists
Aviation engineering and inspection specialists
Environmental engineering specialists

Acquisitions During Ownership

Target Engineering Group (2016): Original investment, a statewide leader in Florida construction management/inspection
AIA Engineers (2017): A full-service transportation design, traffic, and construction management/inspection firm based in Texas
Infrastructure Engineers (2018): A national leader in bridge inspection that had capabilities in design and construction management/inspection as well
Johnson-Adams (2018): A leader in construction management/inspection and CPM scheduling in western Florida
Structural Grace (2019): An Arizona leader in design, construction management/inspection, and construction staking with a specialty in bridges
TKW Consulting Engineers (2019): A water-wastewater engineering leader in southwestern Florida
U.S. Underwater Services (2020): A commercial diving company specializing in municipal water tank inspections and maintenance based in Texas
Apex Design (2020): A Colorado leader in traffic engineering, ITS, smart cities, transportation planning, and construction services
Murraysmith (2020): A leader in transportation and water engineering and inspection in the Pacific Northwest

Keystone Contact: Scott L. Gwilliam

Keystone was more than just a financial partner – they are long-term partners, both operationally and financially, in helping build our business. Even during the tough economic periods Keystone was our best cheerleader. They truly were the best partners for our business.

Gary Nelson

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Jason V.

Andrew C. Wehr

Principal of Finance

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Andrew W.

Michael Weston

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 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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

Legal counsel was provided by Kirkland & Ellis LLP.

Contact Information

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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

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

Contact Information

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

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

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

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

Bill Sommerschield

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

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

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

Andrew Wehr

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

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

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

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

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

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

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

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

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

About Scott Group

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

Contact Information

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

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

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

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

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

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

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

About Capsa Solutions

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

About Kirby Lester

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

Contact Information

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

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

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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

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

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

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

Contact Information

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

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

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

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

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

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

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

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

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

Contact Information

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

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

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

Dennis Howe

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

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

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

Charles Shreve

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

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

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

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

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

Movilitas Consulting AG

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

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

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

Bernal, Inc.

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

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

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

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

Contact Information

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

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

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