CashStar purchase highlights interest of out-of-state M&A buyers in Maine companies
Maine-based companies are luring out-of-state M&A buyers with a hearty appetite that shows no signs of slowing.
So far this year, $640 million worth of Maine-targeted mergers and acquisitions have been announced — already more than double the $300 million recorded for the whole of 2016 — according to data compiled for Mainebiz by Dealogic. The $640 million figure takes into account just the six deals whose values were disclosed, out of 25 total transactions.
The total includes the $175 million cash purchase of CashStar Inc., a Portland-based provider of gift card commerce solutions, by Blackhawk Network Holdings Inc. (NASDAQ: HAWK) of Pleasanton, Calif., completed Aug. 30.
Strategic and financial buyers from out of state have been snapping up Maine targets across a broad spectrum of sectors from agribusiness and food to professional services and energy.
Other recent deals include Bob Evans Farms Inc. (NASDAQ: BOBE) gulping down Pineland Farms Potato Co. in Mars Hill for $115 million, though the final price tag may rise by $25 million if certain financial metrics are achieved within the first 24 months after closing; and Gray Television Inc. (NYSE: GTN), of Atlanta, Ga., buying two television stations, including WABI TV5 in Bangor, from Portland's Diversified Communications Inc. for $85 million.
“My sense is that we're going to continue to see activity in the consumer products sector,” Pierce Atwood partner Christopher Howard told Mainebiz. “We're going to continue to see a lot of activity there because Maine has built a lot of great brands that have wide market acceptance but are probably still affordable.”
Yummy bars I: Bixby & Co. opens Rockland store
Bixby & Co., a Rockland-based maker of organic chocolate bars, opened a store next to its headquarters and manufacturing site.
The company, founded in 2011 by Kate McAleer with her mother, Donna McAleer, has been adept at finding financing — in part by winning grants and pitch contests.
In 2014, McAleer won Gorham Savings Bank's LaunchPad pitch competition, a $30,000 prize. In 2016, she was again a winner in a pitch contest, held by the Tory Burch Foundation in New York City; that grant was $100,000. Over a three-year period, Bixby was the recipient of three grants from the Maine Technology Institute, for a total of $53,500, according to the MTI website. (McAleer was also the recipient of the Small Business Administration's “Young Entrepreneur of the Year” award and the Mainebiz NEXT Award, but they do not come with prize money.)
Bixby bars are sold at Whole Foods Markets and other supermarkets, convenience stores and online through Amazon and other retailers.
Yummy bars II: Redd Bar raises in excess of $1.5M
Portland-based protein and energy bar company Redd Bar closed a second round of investments last week higher than expected, exceeding its $1.5 million goal by 30%.
In 2016, the company raised $1 million.
Alden Blease, founder and chief creative officer, said the company was raising money “because we've had such an incredible increase in business.” Proceeds will be used to increase distribution and support the increased business.
The company recently announced new distribution in Sprouts, Gelson's, New Seasons and California Whole Foods markets. The vegan protein bar is now found in more than 1,000 stores, including locally in Hannaford supermarkets, Blease said.
This round of investors, led by Dan Nordstrom of Redd Investors LLC, includes Fresh Tracks Capital and CEI Ventures, as well as Chris Licata, former CEO and president of Blake's All Natural; Scott Case, former managing partner of VMG partners; and Tyler Ricks, president of Noah's Bagels.
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Maine Food Insider: Redd bar looks to its East Coast roots after big year out West
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