Keystone Capital Mergers and Acquisitions Summary

Private Equity Firm Profile

In the last 3 years, Keystone Capital has acquired 1 company. It has also invested in 2 others.

Keystone Capital’s most common sectors for investment arebusiness services (18%) and engineering (15%) . The Firm’s most common investment types include buyout (lbo, mbo, mbi) (20%) and divestiture (18%). In total, Keystone Capital has invested in 18 US states and 2 different countries. Its largest (disclosed) acquisition occurred in 1999 when it acquired Polymicro Technologies for $15M.

In the last 3 years, Keystone Capital has exited 2 companies. The Firm’s most common exit type is trade sale (57%). Keystone Capital’s largest (disclosed) exit occurred in 2010 when it sold Keystone Bakery Holdings for $185M.

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M&A Summary

  • M&A Total Activity58
    • M&A Buy Activity35
    • M&A Sell Activity23
  • Total Sectors Invested 17
  • Total Countries Invested 2
  • M&A Buy/Sell Connections 22
  • M&A Advisors 5

Keystone Capital

155 N. Wacker Dr. Suite 4150,
Chicago, Illinois 60606
United States
(312) 219-7900
www.keystonecapitalinc.com
info@keystonecapital.com

Keystone Capital is a private equity firm focused on acquiring family businesses, corporate divestitures, industry consolidations, and special situations. Keystone prefers lower middle-market, US-based businesses with EBITDA of $3 to $15 million. Target sectors include specialty manufacturing, business services/outsourcing, food processing and ingredients, publishing, instrumentation, optical components, and healthcare products/services. Keystone will not invest in start-ups, turnarounds, commodities, defense/government contractors, retail stores, or restaurants. Keystone Capital was formed in 1994 and is based in Chicago, Illinois.


Investment Criteria

Sectors of Interest: Apparel/Textiles, Beverages, Business Services, Construction, Consumer Products, Consumer Services, Electrical Equipment, Electronics, Engineering, Food, Healthcare Services, Information Technology, Internet Software and Services, Manufacturing, Medical Products, Metals/Mining, Packaging, Safety/Security, Software, Staffing

Target Transaction Types: Buyout (LBO, MBO, MBI), Consolidation, Divestiture, Recapitalization, Special Situations/Distressed

Geographic Preferences: East US, Midwest US, South US, West US

Transaction Criteria Min Max
Target Revenue - -
Target EBITDA 3 15
Investment Size - -
Enterprise Value - -
values in millions of USD

M&A Summary

Buy vs Sell

Year ≤ '20 '21 '22 '23 '24 '25 T
Buy (1.4/yr) # 28 4 3 - - - 35
vol $15M $15M
Sell (0.8/yr) # 19 2 2 - - - 23
vol $185M $185M
  58

Most Recent M&A

Company Date Value Type
Environments for Health, LLC 2022-10-18 - Add-on Acquisition
Williston, Vermont · www.e4harchitecture.com
Keystone Natural Holdings LLC 2022-09-16 - Add-on Acquisition
Folcroft, Pennsylvania · www.keystonenatural.com
Novatio Solutions 2022-08-16 - Stake Purchase
Chicago, Illinois · www.novatiosolutions.com
Pinchin Ltd. 2022-02-07 - Stake Purchase
Mississauga, Ontario · www.pinchin.com
Integra Testing Services 2022-02-01 - Consolidation
Mentor, Ohio · www.integratesting.com
Tribute Baking Company 2021-12-13 - Consolidation
Bohemia, New York · www.tributebaking.com
Hometown Foods USA 2021-12-13 - Add-on Acquisition
Medley, Florida · www.hometownfoodsusa.com
VDA, Inc. 2021-12-01 - Buyout (LBO, MBO, MBI)
East Hanover, New Jersey · www.vdassoc.com
Peak Technologies, Inc. 2021-04-09 - Secondary Buyout
Columbia, Maryland · www.peaktech.com
ClearWater Solutions (CWS) 2021-03-01 - Buyout (LBO, MBO, MBI)
Auburn, Alabama · www.clearwatersol.com
View All >>

Portfolio M&A

Company Acquired Add-On/Sale Date #
Tribute Baking Company 2021-12-13 Hometown Foods USA 2021-12-13 1
Bohemia, New York · www.tributebaking.com Medley, Florida · www.hometownfoodsusa.com
CONSOR Engineers 2019-01-05 U.S. Underwater Services LLC 2020-08-03 6
Chicago, Illinois · www.consoreng.com Mansfield, Texas · www.usunderwaterservices.com
MERGE 2018-12-17 Sandbox Group LLC 2020-03-03 4
Chicago, Illinois · www.mergeworld.com Chicago, Illinois · www.sandboxww.com
CONSOR Engineers 2019-01-05 Target Engineering Group, Inc. 2019-01-05 5
Chicago, Illinois · www.consoreng.com Coral Gables, Florida · www.targetengineering.com

M&A by Sector

Sector Current # Value All-time # Value
Business Services 4 (29%) - 6 (17%) -
Engineering 1 (7%) - 5 (14%) -
Food 1 (7%) - 5 (14%) -
Manufacturing - - 3 (9%) 15M (100%)
Apparel/Textiles 1 (7%) - 2 (6%) -
Environmental 2 (14%) - 2 (6%) -
Healthcare Services 1 (7%) - 2 (6%) -
Consumer Products - - 1 (3%) -
Consumer Services 1 (7%) - 1 (3%) -
Distribution 1 (7%) - 1 (3%) -
Energy Services and Equipment 1 (7%) - 1 (3%) -
Information Technology - - 1 (3%) -
Marketing 1 (7%) - 1 (3%) -
Metals/Mining - - 1 (3%) -
Packaging - - 1 (3%) -
Safety/Security - - 1 (3%) -
Test/Measurement Equipment - - 1 (3%) -
Total 14 - 35 $15M

Acquisitions By Geo

State/Country Current # Value All-time # Value
United States 13 (93%) - 34 (97%) 15M (100%)
  Illinois 4 (29%) - 6 (17%) -
  New Jersey 2 (14%) - 4 (11%) -
  Pennsylvania - - 3 (9%) -
  Texas 1 (7%) - 2 (6%) -
  New York 1 (7%) - 2 (6%) -
  Georgia 1 (7%) - 2 (6%) -
  Wisconsin - - 2 (6%) -
  Indiana - - 2 (6%) -
  Florida - - 2 (6%) -
  Ohio 1 (7%) - 1 (3%) -
  Minnesota 1 (7%) - 1 (3%) -
  Michigan 1 (7%) - 1 (3%) -
  Alabama 1 (7%) - 1 (3%) -
  Arizona - - 1 (3%) 15M (100%)
  Vermont - - 1 (3%) -
  New Hampshire - - 1 (3%) -
  Massachusetts - - 1 (3%) -
  Maryland - - 1 (3%) -
Canada 1 (7%) - 1 (3%) -
  Ontario 1 (7%) - 1 (3%) -
Domestic 13 (93%) - 34 (97%) 15M (100%)
Cross-border 1 (7%) - 1 (3%) -
Total 14 - 35 $15M

Acquisitions by Deal Type

Type Current # Value All-time # Value
Buyout (LBO, MBO, MBI) 5 (36%) - 7 (20%) -
Divestiture 1 (7%) - 6 (17%) 15M (100%)
Recapitalization 1 (7%) - 6 (17%) -
Consolidation 3 (21%) - 4 (11%) -
Stake Purchase 3 (21%) - 4 (11%) -
Growth Capital - - 3 (9%) -
Special Situations/Distressed - - 3 (9%) -
Secondary Buyout 1 (7%) - 2 (6%) -
Total 14 - 35 $15M

Exits by Deal Type

Type Total # Value
Trade Sale 11 (48%) -
Secondary Sale 6 (26%) -
Trade Sale - Public Company 3 (13%) 185M (100%)
Merger 2 (9%) -
Unknown 1 (4%) -
Total 23 $185M

Top M&A Advisors

Financial Deals
Fairmount Partners LLC
1
CohnReznick LLP
1
Legal Deals
Honigman Miller Schwartz and Cohn LLP
7
Kirkland & Ellis
2
DLA Piper
2

Deal Values

buy # Total
< $100M 1 $15M
TOTAL $15M
Largest Polymicro Technologies, Inc.
$15M (1999-07-06)
sell # Total
$100M to $1B 1 $185M
TOTAL $185M
Largest Keystone Bakery Holdings, LLC
$185M (2010-09-24)

M&A Connections

Deals
Acquired from
Investor(s)
6%
2 (6%)
Strategic(s)
17%
6 (17%)
Exited to
Investor(s)
26%
6 (26%)
Strategic(s)
65%
15 (65%)

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