Industry:
Manufacturing – Adhesives
The DVS Group Role:
Buyside Representation
Buyer:
Lighthouse for the Blind – St. Louis
Lighthouse for the Blind (“LHB”) has been a DVS Group client since 2015 when they acquired Tear Mender. Last year, LHB acquired RapidFix. Hitting their fourth acquisition overall and third with us, LHB acquired Badge Magic in September 2018.
As a nonprofit organization, LHB is a unique business buyer. It’s mission is to “assist individuals who are legally blind maintain dignity and independence by making available employment, education and support services.”
The nonprofit employs 48 people who are legally blind in their two St. Louis County assembly and packaging plants. The sales revenues from these products support LHB’s community outreach programs.
John Thompson, LHB’s president, said, “The Badge Magic acquisition is another exciting opportunity for the St. Louis blind and visually impaired community. It will bring jobs to the area and provide a new source of revenue that will help fund our other support services.”
Seller:
Dave Herzig founded Badge Magic in 2004 “after a two-year search for a better way to attach badges to Scout uniforms” (read the full story here).
Badge Magic is an adhesive product that allows users to stick patches and badges to a variety of surfaces without sewing or ironing. A household Goo-Gone-like product can easily remove the Badge Magic adhesive.
The product has become particularly popular with children’s organizations requiring badges – for example, Boy Scouts, Girl Scouts, and American Heritage Girls. The product has also been branded as CosBond to appeal to those creating costumes for cosplay.
The Deal:
LHB started their acquisition search early in 2018. Dave Herzig responded to DVS outreach in May expressing interest in selling to LHB.
After learning more about Dave and the Badge Magic product, it became apparent that the adhesive manufacturing would be a complement to the operations LHB is currently running with the Tear Mender and Rapid Fix products. LHB presented an LOI to Dave; they agreed to valuation and deal terms; and the dealmaking process moved to a close smoothly. The transaction closed on September 21, 2018.
Ben said, “Getting deals done for LHB will never get old for me. We’ve done three and I’m ready for more. It’s an honor to be part of LHB’s mission to create employment for people who are blind. I don’t know of any other M&A advisors who get to work with nonprofit clients. This is the positive change The DVS Group loves to be a part of.”
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