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MONDAY, JAN. 7, 2019 | IN THIS ISSUE
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Sale of Marion Process Solutions paves way for growth
Marion Process Solutions, one of the Corridor's oldest locally based manufacturers, has been acquired by a private equity firm in a move that's expected to accelerate growth.
Chicago-based May River Capital acquired Marion Process Solutions effective Dec. 31 from owners Barry Boyer of Cedar Rapids and former Cedar Rapidian Jim Hoke of Arizona. Terms of the sale were not disclosed.
"May River believes there is a terrific opportunity in front of Marion and we're excited to partner with management and assist the company through its next phase of growth," said Chip Grace, partner at May River Capital. "The former owners and the senior leadership team have built a very strong foundation at Marion through excellent customer service and innovative, market-leading products. We aim to build on this foundation by providing financial and strategic resources to the management team and employees to help accelerate the growth of the company."
Founded in 2012, May River Capital seeks out small, high-caliber industrial growth businesses that have the potential to be transformed into larger, more valuable enterprises. May River's goals for Marion Process Solutions include tripling or quadrupling revenues into a range of $80-$100 million and adding on complementary products, Mr. Grace said.
CEO Lee Eilers will continue to head the leadership team of the 86-year-old Marion business, which employs about 55. It will also continue to operate in Marion under its current name.
Mr. Boyer said the decision to sell Marion Process Solutions after owning and growing the company for more than 20 years came down to the fact that significant investment was required to capitalize on immediate growth opportunities.
"At the root of it, we made a promise to our people that we would continue to invest in the business as it grew," Mr. Boyer said. "We had some new technology and innovation that caused not only strong growth, but potential for dramatic growth, and we decided that seeking some sources for outside funding made sense."
About 70 companies expressed interest in acquiring the company, a leading producer of industrial mixing equipment and the developer of the new microwave-based WaveMix precision mixing technology. May River Capital was selected out of about 10 companies that submitted offers in a letter-of-intent process.
"We picked the company that we thought would be most supportive of the kind of empowered culture we created there and was backed by the significant resources and money to build a platform to grow it in the future," Mr. Boyer said. "It's going to allow us opportunities to expand into tangential markets that complement our overall offering in the process solutions space."
Marion Process Solutions changed its name in 2015 from Marion Mixers to convey the broadening of its product offerings from mixers to include products such as conveyors and baggers. The move was rewarded by strong acceptance in the coffee industry, and a
new $1.5 million lab facility was recently opened to allow customers to test their products on Marion Process Solutions equipment.
Mr. Eilers voiced gratitude from the company's staff to Mr. Boyer and Mr. Hoke for their support as owners, saying "We make the turn with a heart full of gratitude to those gentleman, and look forward to continuing to grow this business in the Marion community for years to come."
May River Capital has assets of about $400 million, and with the Marion Process Solutions has seven different business platforms, Mr. Grace said. It has so far not sold any of its businesses, but generally targets a five to seven year time horizon for holding its investments.
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Alissa Weber |
Alissa Weber has been promoted from CFO to CEO of UnitedHealthcare's Community Plan of Iowa, effective Jan. 15.
In her new role, Ms. Weber will lead the UnitedHealthcare team that helps manage the IA Health Link program. Ms. Weber
is a native of the Quad Cities and attended the University of Iowa. She has an extensive background in health care, including more than 15 years of managed Medicaid experience.
UnitedHealthcare Community Plan of Iowa serves more than 400,000 IA Health Link members. UnitedHealthcare is a division of UnitedHealth Group, a diversified health and well-being company.
As CFO, Ms. Weber provided leadership and oversight for the financial management of the health plan, and strategic direction for the development of a sustainable Medicaid program. Before joining UnitedHealthcare, Ms. Weber worked at Centene Corporation for more than 12 years, holding a number of leadership positions including health plan vice president of finance for Home State Health Plan, controller for several different health plans and director of corporate development. She also served as an officer on the board of directors for Home State Health Plan.
She currently resides with her family in central Iowa, where she is active in volunteer activities supporting public education and children.
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A photo of the Cargill corn milling plant in Cedar Rapids |
Cargill is asking Cedar Rapids and state officials to support incentives for a $36.7 million project to update the company's corn milling plant at 1710 16th St. SE.
The project includes $31.5 million for equipment replacement in the factory's preparation plant and degumming facility, as well as construction of a 27,000-square-foot building expansion, according to background provided to city council members, who will consider a resolution of support for incentives tomorrow.
The council will consider city sponsorship of an application by Cargill to the Iowa Economic Development Authority for state tax credits under the High Quality Jobs Program for plant facility modernization. Receiving assistance under the program also requires the city to provide a local match for the state grant.
Under Cedar Rapids' Local Match Economic Development Program, the city plans to provide a 10-year, declining-scale exemption of the increased property valuation generated by the plant improvements, averaging 44 percent over the 10 years. Since most of the investment will be in equipment that is not taxed as real estate, the assessed value is expected to increase by only $2.1 million. The project would generate $2.1 million in taxes over the 10 years, of which $367,700 would be rebated to Cargill and $1.8 million would go to the city.
The corn milling plant has been in operation for more than a half-century, and produces an assortment of products. The city has also been in discussions with Cargill about the sale of city-owned land south of Steward Road and Otis Avenue SE so that the company can build a $6.5 million rail car storage and switching yard, a proposal facing some opposition from owners of adjacent property.
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In early December, we asked a handful of Corridor business leaders from various sectors for the trends and developments they would be watching in 2019, in hopes of getting a fuller picture of the business year to come. While everyone remains calm, there appears to be a bigger dose of uncertainty than in our previous compilations. The following is a preview of our annual Year Ahead in Business feature, available now in the Jan. 7 edition of the CBJ.
What business trends will you be watching in the new year? Share with us on Facebook or Twitter,
@CBJournal, #CBJ2019.
Trade issues, rising interest rates could cloud picture
Dick Isaacson
Founder, Agri-Management Services
2019 will be another challenging year for agriculture. International trade disruptions have negatively impacted key agricultural exports, particularly pork and soybeans. Grain prices have been declining or stagnant for five years, while input costs have been fairly steady. The Midwest has experienced four consecutive years of record crop yields. Even with our unusual weather patterns, the overall growing seasons have been above average. A return to historical patterns could snap this trend.
Historically low interest rates, excellent yields and limited amounts of land offered for sale have supported land values. As interest rates rise, the long-term impacts of trade policies and deteriorating farm balance sheets could negatively impact the agricultural economy. This, combined with a need to transition farm assets to the next generation, increases the likelihood of instability in the agricultural economy.
2019 bringing challenges and opportunities for owners and developers
Darryl High
Founder, High Property Management & High Development Corp.
Rising interest rates and cost of funds will change the profile for transactions under development and construction in the coming year, while material costs and tariff impacts will create more challenges for developers in 2019.
The Corridor market has seen increases in rental rates in Cedar Rapids and stable rates in the Iowa City area, where the student segment is feeling market pressure. The overall multifamily outlook is stable, in our opinion. The office and retail sector will continue to be user-driven. These segments have some existing vacancy, and we believe this will continue into next year, possibly increasing when new and more desirable properties come online from the development sector.
The Corridor continues to see solid growth and a possible tipping point in population moving forward. With many quality employers and private and public sector organizations, we feel Eastern Iowa is a place to invest, develop and have ownership. Improvements in infrastructure at Interstate 80 and 380 and an increase in lanes along I-380 to Cedar Rapids will continue spurring additional development in the residential and commercial property groups.
Read all of this year's predictions in this week's print or digital editions of the CBJ.
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Vendor eX² Technology today announced final acceptance of a Truck Parking Information Management System (TPIMS) that will enable truck drivers to more quickly find parking spaces for rest periods, a service that will aid compliance with federal hours of service regulations.
The Iowa TPIMS solution, Trucks Park Here, was deployed in partnership with the Iowa Department of Transportation (DOT) on Jan. 4. It
provides real-time information on available truck parking spaces for public rest areas, private truck stops and other privately owned facilities along Iowa's I-80, I-29, I-35, I-235 and I-380 corridors.
The system connects to 41 truck parking facilities, including 24 public rest areas, 15 privately owned truck stops, one privately owned restaurant and one privately owned casino. Three additional sites will be connected to the Iowa network within the first quarter of 2019.
The Iowa project was part of a larger Mid America Association of State Transportation Officials (MAASTO) initiative that was funded in part through a $25 million federal Transportation Investment Generating Economic Recovery (TIGER) grant awarded to a group of eight partnering states: Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Ohio and Wisconsin. While each state had a responsibility for implementing its own TPIMS solution, the systems will eventually work together to provide a regional TPIMS.
The Iowa Department of Transportation received $3.4 million in MAASTO grant dollars to fund the $4 million Trucks Park Here project, with a portion of the overall costs covering three years of systems maintenance and operations.
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Jan. 7
Coralville Roundtable
,
by Iowa City Area Chamber of Commerce, no
on
-
1 p.m.,
Wig & Pen
Pizza Pub, 1220 Highway 6 W., Iowa City
.
Roundtables are social lunches over the noon hour.
All are invited to network, keep up
-
to
-
date with
c
hamber and community events and frequent a
member restaurant or business. Free.
Questions can
be directed to
Emily at
(319)
337
-
9637 or
[email protected]
.
Jan. 8
TechBrew AM,
by Technology Association of Iowa, 8
-
9 a.m., Cedar Rapids Metro Economic
Alliance
,
501 First St. SE, Cedar Rapids. TechBrew
AM is an informal networking event for
entrepreneurs, technologists, business people and funders. Free. For more information visit
Monthly Roundtable
, by SCORE of East Central Iowa, noon
-
1 p.m., Grani
te City Food &
Brewery, 4755 First Ave. SE, Cedar Rapids.
A business topic will be discussed
,
along with
networking among participants.
Entrepreneurs and those thinking about starting a business are
invited. Free. For more information or to pre
-
register, v
isit scorecr.org.
Jan. 9
1 Million Cups, by 1MC Cedar Rapids, 8:15-9:15 a.m., Geonetric, 415 12th Ave. SE, Cedar Rapids. Join for community connections, free coffee, and presentations by entrepreneurs, established companies, experts, founder firesides, and fail labs. Free. For more information, visit
facebook.com/1MCICR.
1 Million Cups, by 1MC Iowa City, 9-10 a.m., MERGE, 136 S. Dubuque St., Iowa City. Join for community connections, startup pitches and free coffee. Free. For more information, visit
facebook.com/1MCICR.
Jan. 10
Your Resume: Ticket to a Promotion or Interview
, by PMI Eastern Iowa Chapter, 7:15
-
9
a.m., Cedar Rapids Marriott, 1200 Collins Road NE, Cedar Rapids. Participants will obtain tips
and tricks on upgrading their resumes and havi
ng successful interviews/conversations that could
lead to leadership and growth opportunities. Cost: $13 for members, $20 for guests. For more
Membership 101,
by Cedar Rapids Metro Economic Alliance, 3
:30
-
5 p.m., Economic Alliance,
501 First St.
SE, Cedar Rapids.
Find out how to best
use your
membership, meet other new
members
and hear from existing membe
rs
. Free. For more information visit
bit.ly/2KTYPzq
.
Six Steps to Growing Your Business
, by SCORE of East Central Iowa, 6:30
-
8 p.m., Linn Area
Credit Union, 3375 Seventh Ave., Marion. This workshop will unpack the six essential steps for
every successful business, and provide strategies for planning, financials,
marketing, people and
more. Attendees will receive worksheets, a business analysis survey and a free book. Free. To
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Forward the FREE CBJ Business Daily newsletter to your friends and colleagues, and share the feeling of being informed! Use our fast, one-minute subscription to the CBJ's newsletters
here, or check out our other subscription options
here.
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Headlines from CBS2/FOX 28
These news items are provided by CBS2/FOX 28
One man is behind bars after a stabbing sent another man to the hospital Sunday evening in Marion.
Police responded to 1301 Sixth St. for a reported stabbing at 7:44 p.m. Officers found a man inside the home with a stab wound to the back of his left arm.
He was taken to a local hospital with non life-threatening injuries.
Quincy Franklin, 32, was later arrested for the stabbing and charged with felony willful injury causing bodily injury. Mr.
Franklin is now in the Linn County Jail.
Police are still investigating.
For the first time ever, country superstar Luke Bryan will play at the Iowa State Fair grandstand. Mr.
Bryan and special guest Jon Langston will perform on Aug. 16. Mr.
Bryan is a two-time Academy of Country Music Association Entertainer of the Year and was named CMT Artist of the Year for six consecutive years.
Tickets for the 8 p.m. show start at $70 and go on sale Jan. 10 at 10 a.m.
For more information, visit the
Iowa State Fair website.
T
hese news items are provided by CBS2/FOX 28
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CBS2 Chief Meteorologist Terry Swails' Weather First Forecast
Rain will continue through the first half of the day as a storm system moves through Eastern Iowa. This system will pull in mild air with the rain and temperatures will climb into the upper 40s to low 50s - near record high temperatures in spots. The rain will end by midday, leaving behind 0.25 to 0.50" of rain across the area. A cold front will move through the area and temperatures will drop through the afternoon and winds will pick up.
A weak system will move close to the Iowa/Minnesota border Tuesday and there may be a rain/snow mix, especially in the far north. Otherwise it will be a cooler day with a mix of sun and clouds and temperatures in the mid 30s to around 40. It will be windy, too, winds out of the west around 20-40 mph.
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