Experts in Building Leading U.S. Middle Market Distribution and Business Services Companies
We are a private equity firm that has a 28+ year history of partnering with management teams to build businesses.
WESTPORT, Conn. – August 30, 2019 – Sterling Investment Partners (“Sterling”), a leading middle market private equity firm, announced today that it has made a majority equity investment in HeartLand (“HeartLand” or the “Company”), in partnership with management. HeartLand is a premier provider of commercial landscape and facilities services, currently operating in five markets across the Central United States. The Company’s founder, Edward Schatz Jr, backed by a proven and entrepreneurial team of “green industry” executives, chose to partner with Sterling to continue building a scalable platform in the industry. Terms of the transaction were not disclosed.
Headquartered in Kansas City, HeartLand serves clients through its five regional companies: Signature Landscape in Kansas City (Kansas and Western Missouri); Columbia Landcare (Central Missouri); Keesen Landscape (Denver, Colorado); Hillenmeyer Landscape (Lexington, Kentucky); and JML Landscape (Pittsburgh, Pennsylvania). Services include full-service maintenance (mowing, pruning, fertilization and chemical, irrigation, bed maintenance and annual flowers), landscape enhancements (property upgrades and renovations), and winter services (de-icing and snow removal). Each operating platform is a leader in their respective market, with strong brand reputations for high-quality work, responsiveness, reliability, excellent communication and sustaining long-term client relationships. HeartLand’s leadership team includes Chief Executive Officer Ed Schatz, Chief Development Officer Bill Dellecker, and Chief Financial Officer Peter Welch, who have decades of experience building successful businesses within the commercial landscape industry. By selectively investing in top regional providers, HeartLand has created a diverse platform that combines the power of a pre-eminent local service model with the financial resources, integrated systems, technical and developmental resources of a progressive industry leader.
Edward Schatz Jr, CEO of HeartLand, stated, “We conducted an intensive and focused search to secure a new financial partner who will support our continued growth; that process led us to the ultimate selection of Sterling Investment Partners. While they possess the depth of financial resources we needed, they also bring an understanding of and enthusiasm for this business. Their proven track record and management partnership philosophy has resulted in the growth and development of multiple firms over the years and we are confident they will help HeartLand achieve that same level of success. We’ll make a strong team!”
Charles Santoro, Managing Partner and Co-Founder of Sterling, commented, “We are very excited to partner with HeartLand’s entrepreneurial team, who have a compelling history of success in the space. We look forward to working with the Company to expand its geographic reach, as the team continues to build a world-class platform.”
About Sterling Investment Partners
Sterling Investment Partners is a private equity firm that has been investing in and building middle-market companies for over 28 years with a highly-experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Over its history, Sterling has completed over 165 transactions, representing $16.8 billion in transaction value. Key industries Sterling focuses on include value-added distribution and business services. www.sterlinglp.com.
HeartLand is a leading provider of commercial landscape and facilities services, operating through five market-leading operating companies that serve clients in Kansas City, Denver, Columbia (MO), Lexington (KY), and Pittsburgh. Services include turn-key grounds maintenance, landscape enhancements and winter services (snow removal). The Company’s customer base is comprised of over 3,000 properties across all commercial market segments. For more information, please visit www.HeartLandcompany.com.
Sterling Investment Partners ("Sterling"), a private equity firm that has been investing in and building middle-market companies for 28 years, announced that it has completed the sale of Lipari Foods, LLC ("Lipari Foods" or the "Company") to an affiliate of H.I.G. Capital (“H.I.G.”). Sterling has made a new investment in the Company and will hold a board seat. Terms of the transaction were not disclosed.
Lipari Foods is the leading specialty food products distributor in the Midwest. The Company offers its more than 10,000 customers, which are primarily small and mid-sized grocery store chains, access to over 25,000 national and proprietary stock keeping units across a broad range of “perimeter-of-the-store” food product categories, including, deli, bakery, dairy, confections, natural, organic and frozen.
Throughout Sterling’s ownership period, Lipari Foods has grown organically by increasing market breadth and penetration, and through strategic add-on acquisitions in existing and adjacent markets. Lipari Foods completed seven add-on acquisitions and successfully executed several operational initiatives, growing annual revenues to approximately $1 billion, expanding its product lines, enhancing its salesforce, and adding significant warehouse and manufacturing capacity.
Lipari’s management team, including founding family member and current CEO, Thom Lipari, will continue to lead the Company and maintain a significant investment.
“The guidance and support we received from Sterling was instrumental to our success. Sterling provided the resources necessary to allow us to execute on our shared vision for the Company,” said Thom Lipari. “We look forward to their continued involvement with Lipari Foods going forward.”
Charles Santoro, Co-founder and Managing Partner at Sterling noted, “We are very proud to have supported Thom and his leadership team to help build a more geographically diverse business, broaden the Company’s product offering and make significant investments in operations and human capital in order to achieve our strategic objectives for this dynamic business.”
Mr. Santoro continued, “The Company is extremely well positioned for future growth and we very much look forward to working with H.I.G. and the management team of Lipari Foods during this next phase of growth.”
Sterling Investment Partners
Sterling Investment Partners is a private equity firm with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Sterling has over $1.5 billion in initial fund commitments. Over its history, Sterling has completed platform investments, strategic or add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of over $15.8 billion, representing more than 160 transactions. Key industries Sterling focuses on include value added distribution – B2B and consumer, business services, speciality manufacturing, and transportation and logistics. www.sterlinglp.com
Sterling Investment Partners ("Sterling"), a private equity firm that has been investing in and building middle-market companies for 28 years, announced that the firm has invested in Marcone Appliance Parts ("Marcone" or the "Company").
Headquartered in St. Louis, Missouri, Marcone is one of the leading distributors of original equipment parts for the repair of residential appliances in the United States and Canada. The Company’s customer base is comprised of thousands of residential appliance repair service providers and technicians.
Marcone provides industry-leading parts availability and responsiveness through an unmatched distribution footprint comprised of ten regional distribution centers and 35 local branches. The Company offers its customers approximately 70,000 unique SKUs and delivers parts to 90% of its customers next-day, and 100% of its customers in two days.
Jim Souers, President and CEO of Marcone stated, "We have developed a close relationship with the Sterling team, and believe Sterling will be a truly value-added partner to Marcone.”
M. William Macey, Jr., Co-founder and Managing Partner at Sterling noted, “Sterling is excited to invest in the leading distributor of original equipment parts for residential appliances. Marcone’s national distribution network, parts availability and response time to its customers make it a leader in its market. The Company has best-in-class technology which drives improved efficiency and an improved customer experience. Marcone has an outstanding management team. We are thrilled to partner with the team and assist in continuing the Company’s growth.”
Sterling Investment Partners
Sterling Investment Partners is a private equity firm with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Sterling has over $1.5 billion in initial fund commitments. Over its history, Sterling has completed platform investments, strategic or add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of over $15.8 billion, representing more than 160 transactions. Key industries Sterling focuses on include value added distribution - B2B and consumer, business services, transportation and logistics and specialty manufacturing. www.sterlinglp.com
Sterling Investment Partners ("Sterling"), announces that its portfolio company, Belnick LLC (“Belnick” or the “Company”), has acquired Classroom Essentials Online, Inc. (“Classroom Essentials”). Founded in 1985, Classroom Essentials is a distributor of value-oriented furniture through company-owned microsites to retail, residential, commercial and institutional end markets. Key product categories include church chairs, folding chairs and tables, Chiavari chairs, banquet chairs and other products.
Belnick is a leading online distributor of value-oriented furniture for residential and commercial use, serving both wholesale and direct-to-consumer channels. The Company offers over 4,300 unique furniture products, including office chairs, stacking chairs, folding chairs, restaurant furniture and reception furniture.
According to M. William Macey, Co-founder and Managing Partner at Sterling Investment Partners, “The acquisition of Classroom Essentials will enhance Belnick’s competitive position and product offering in the Company’s direct-to-consumer business. The combination of the two businesses will allow us to realize cost-synergies as well as to benefit from cross-selling products to new and existing customers. In addition, we are very pleased to add key members of the Classroom Essentials management team to the Belnick management team.”
Sterling Investment Partners
Sterling Investment Partners is a private equity firm with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Sterling has over $1.5 billion in initial fund commitments. Over its history, Sterling has completed platform investments, strategic or add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of over $15.8 billion, representing more than 160 transactions. Key industries Sterling focuses on include B2B and consumer value-added distribution, business services, specialty manufacturing, and transportation and logistics. www.sterlinglp.com
WARREN, Mich. – On Friday, November 2, Lipari Foods, a leading Midwest food distributor based in Warren, Mich., closed on the acquisition of the specialty deli company, Heagy Foods, including the Guernsey’s Gift brand. Heagy Foods is headquartered in Lancaster, Pennsylvania. The opportunity increases Lipari’s eastern Pennsylvania distribution area along with expanding their portfolio of specialty deli product offerings.
Thom Lipari, President and CEO of Lipari Foods says: “We are excited to team up with a solid, service driven company like Heagy Foods. Adding a variety of their specialty deli products to Lipari’s portfolio along with ability to expand the Lipari distribution footprint will surely bring added value to both Lipari’s existing customers as well as customers that are currently serviced by Heagy Foods.”
Lipari’s strategic position continues to be one of the premier “perimeter of the store and specialty grocery distributors in the US. The acquisition of Heagy Foods is a natural “next step” for Lipari, as Lipari continues to expand their service area within Pennsylvania and beyond.
About Heagy Foods, Inc.
In 1953, Richard M. Heagy purchased a small deli stand at a Farmer’s Market in Philadelphia. It was there where he started his own business of “Richard M. Heagy’s Quality Smoked Meats and Cheese” located in his home. As demand grew for his products, area businesses began to request wholesale orders and Richard M. Heagy, Inc. came to fruition.
Now known as Heagy Foods, the company is renowned for its service and distributes cheeses, deli meats, and frozen foods to independent grocery stores, corporate chains, and numerous other retailers and wholesalers.
WARREN, Mich. – On Friday, October 19, Lipari Foods, a leading Midwest food distributor based in Warren, Mich., closed on the acquisition of the Mediterranean food business of Jerusalem Foods, including the Sahtein brand. Jerusalem Foods is headquartered in Dearborn, Michigan. This opportunity expands Lipari’s product breadth and fulfills another strategic goal for the company.
“Lipari’s strategic position is to be one of the premier “perimeter of the store and specialty grocery distributors in the US.” Thom Lipari, President and CEO of Lipari Foods says: “We are looking forward to the addition of a full ethnic food division with the organization and expanding our current product offerings. Jerusalem Foods is a leader in the Mediterranean and Middle Eastern market and combining what they have established with all that Lipari brings to the table means increased value for all of our already diverse customer base.”
“I’m thrilled to have the opportunity to partner with one of our industry’s leaders. I look forward to bringing our extensive capabilities and experience in Mediterranean and Middle Eastern food to support Lipari Foods. This will enable Lipari Foods to represent a broader product selection,” says Ron Batshon, whose father founded the business in 1976.
About Jerusalem Foods
Jerusalem Foods began with the vision of founder Albert Batshon, who owned and operated the highly successful Falafil Palace restaurant in Ann Arbor, Michigan.
In 1976, Albert established Jerusalem Foods and his restaurant based production company grew into a 2,000 sq ft facility located in Westland, Michigan. His business and reputation grew, and in 1988 Jerusalem Foods moved to a 15,000 sq ft facility in Redford, Michigan, followed in 2003 by a move to a 70,000 sq ft facility in Dearborn, Michigan.
Originally Published by Crain’s Detroit Business
March 5, 2018 3:17 PM
By Annalise Frank
Lipari Foods LLC has purchased Waterloo, Wis.- based Jim's Cheese LLC, the Warren-based food distributor announced Monday.
Lipari bought the cheese cutting and packaging firm to grow its manufacturing business, according to a news release. The Wisconsin cheese supplier will fall under Lipari's JLM Manufacturing division.
Terms of the deal were not disclosed. A Lipari representative did not immediately respond to further questions.
The distributor has grown through acquisitions in recent years. It purchased assets of Taylor-based Dairy Fresh Foods Inc. in August for an undisclosed price. And in early 2015, it bought Bridgeville, Pa.-based Clover Mountain Foods LLC for $16 million, expanding its service area and enabling it to become a top distributor of specialty foods and high-demand fresh foods found in the bakery, dairy, deli, seafood, meat, beverage, convenience food and other "perimeter of the store" product areas.
It also bought Sun Prairie, Wis.-based Soderholm Wholesale Foods Inc. for $4 million in late 2014.
Lipari was working toward a $39.4 million expansion of its Warren site as of the end of 2016. The Lipari representative didn't immediately respond to a request for an update on the project.
Originally Published by www.refrigeratedfrozenfood.com
September 21, 2017
Lipari Foods, Warren, Mich., acquired several assets of Dairy Fresh Foods, Inc., Taylor, Mich., including the Dairy Fresh brand, effective Aug. 11.
This opportunity expands Lipari’s product breadth and fulfills another strategic goal for the company—to be one of the premier “perimeter of the store and specialty grocery” distributors in the United States.
“We are excited to have acquired the many brands of Dairy Fresh Foods,” says Tony Franchi, senior vice president of sales at Lipari Foods. “They offer great products to the marketplace and have a long history of servicing the supermarket trade. Combining what they have established with all that Lipari brings to the table means increased value for all of our customers.”
Acquiring select assets of Dairy Fresh Foods is a natural “next step” for Lipari, as the two companies maintain a similar product portfolio of local and national brands and share established relationships with many manufacturing partners.
Lipari Foods will be integrating the acquired assets into its Warren campus, where it added 262,000 square feet of additional warehouse capacity in July. The company expects a smooth transition to the new facility, and is working to avoid any disruption to customers and their businesses.
CHARLOTTE, NC, NEW YORK, NY, and WESTPORT, CT. – July 31st, 2017 – Warburg Pincus, a global private equity firm focused on growth investing, today announced that funds affiliated with the firm have agreed to acquire MSHC, Inc. (“Service Logic” or the “Company”), the largest provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, from Sterling Investment Partners (“Sterling”). Terms of the transaction were not disclosed.
Headquartered in Charlotte, North Carolina, Service Logic is the largest independent provider of aftermarket maintenance, repair, and replacement services for commercial HVAC equipment, chilled water systems, and building automation and control systems. The Company is comprised of leading HVAC service businesses in 34 markets across the United States. By investing in these businesses, Service Logic has created a strong platform that combines a preeminent local service model with the financial and technical resources of a national leader in the energy and mechanical service industry. Service Logic continuously invests in its employees to ensure that the business has a highly trained and skilled workforce that can address the challenges of today and the future for the company’s clients.
Craig Steinke, CEO of Service Logic, commented, “We are pleased to welcome Warburg Pincus as our new investment partner. We are attracted to the firm’s philosophy of partnering with management teams to build durable businesses of scale. Together, we will continue to grow and expand Service Logic, both organically and through strategic acquisitions. We would like to thank Sterling for their close partnership with our team, dedication to the business, and consistent support of investments in the Company’s growth.”
Jeff Goldfaden, Managing Director, Warburg Pincus, commented, “Service Logic has established itself as an industry leader by providing mission-critical services to thousands of clients nationwide and is well positioned to continue its impressive growth under the talented leadership of CEO Craig Steinke and the company’s management team.”
William Macey, Managing Partner and Co-Founder of Sterling commented, “We are proud of the transformative investments and 12 successful acquisitions completed during our ownership of Service Logic. The company is well positioned for future growth, and we wish the Service Logic team all the best in its next chapter.”
About Service Logic
Service Logic is one of the largest privately held Energy and HVAC/Mechanical Services companies in the United States. Committed to long-term client relationships, the company services over 90,000,000 square feet of commercial, industrial and institutional real estate for more than 8,000 clients. Service Logic is a leading provider of integrated services that optimize energy efficiency, comfort, productivity, health and safety. For more information, visit www.servicelogic.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $44 billion in private equity assets under management. The firm’s active portfolio of more than 140 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 16 private equity funds which have invested more than $60 billion in over 780 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information, please visit www.warburgpincus.com.
About Sterling Investment Partners
Sterling Investment Partners is a private equity firm that has been investing in and building middle-market companies for over 25 years with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Over its history, Sterling has completed over 140 transactions, representing $12.7 billion in transaction value. Key industries Sterling focuses on include business services, consumer, value added distribution, niche manufacturing, and transportation and logistics. www.sterlinglp.com.
Article from Lipari Foods "The Mirror" Issue 39, Summer Issue 2017
In the past year Lipari Foods has made some big changes, not only within the organization but within the community as well. Back in 2015, the company made the decision to expand its footprint with the construction of a state-of-the-art frozen warehouse facility across the street from the existing distribution center on Bunert Rd. This came about in response to the need for additional warehouse square footage, particularly space that was close to the current headquarters on Bunert Road. Partnering with Ashley Capital, Lipari Foods acquired two auto salvage yards on the east side of Bunert to construct the facility. The acquisition of this land provided over 17 acres to build an efficient new specialty freezer warehouse. Teaming up with The Tippman Group who constructed the main distribution center on Bunert in 2006, it’s projected that the building will be fully operational by the end of July 2017.
Because of the construction of this facility and the added distribution capabilities it represents, Lipari anticipates the creation of over 300 direct and indirect jobs across the network. The new warehouse space is larger and more ambitious than any other of the Lipari facilities to date. It will stand 36 feet tall and house 252,000 square feet, providing an entire extra layer of pallet storage more than the main warehouse now! It will also feature 27 truck bays to unload and load product onto its climate-controlled dock. Because of this additional space and where it is located, the frozen inventory currently found at the main warehouse will be relocated to this facility. The construction of this building will also allow Lipari Foods to move much of the inventory from the other remote warehouses, such as DFL Logistics in Detroit, to the new building and back to the main distribution center. Having most of the inventory on Bunert Road will result in enhanced shipping efficiencies due to the proximity of the warehouses. We’re excited to have this new space online soon!