M&A Report: July 2024 sees 5 notable transactions involving New Orleans area companies

G.F. Gay Le Breton And Liam Norton //August 6, 2024

https://bit.ly/Chaffe-CB-July24

July 2024 saw five notable transactions involving companies in the greater New Orleans area: two company acquisitions, two minority investments of growth capital and one sale of subsidiary.

On July 1, Maritime Partners, headquartered in Metairie, completed its acquisition of e1 Marine, paving the way for hydrogen-powered maritime solutions. Oregon-based e1 Marine is known for its advanced methanol-to-hydrogen generation products, which provide a cleaner fuel source for marine vessels. By converting methanol into hydrogen, users can utilize the technology to power fuel cells, resulting in significantly reduced emissions and an increase in fuel efficiency.

The practical applications of e1 Marine’s technology are already being realized. In May, Maritime Partners signed a Design Basis Agreement with the U.S. Coast Guard, facilitating the path to clearing e1 Marine’s technology for use on Coast Guard vessels, including the groundbreaking Hydrogen One, a first-in-its-class towboat. The innovation will allow the towboat to convert stored methanol into hydrogen onboard, showcasing the potential for widespread adoption of this cleaner technology.

Maritime Partners is a leading provider of maritime leasing and financing solutions. Servicing the Jones Act trade and beyond, the company offers a fleet of over 1,900 vessels for inland, coastal and blue water bareboat charters and flexible lending options throughout the world.

On July 30, New Orleans-based Turn Services, a major fleeting and shifting company working in the maritime industry, announced its acquisition of Marine Fueling Service Inc. (“MFS”), a Texas-based provider of marine support services.  MFS offers fleeting, shifting, towing, boat charter, and fuel and lube services in the golden Triangle area and the Intracoastal Waterway in Texas. It was owned by the Bean family of Port Arthur for over six decades

“The acquisition of MFS is the latest step in our strategy to expand our footprint along the Gulf Coast Shipping corridor,” said Mario Munez, president of Turn Services. MFS’ strategic location at the intersection of the Intracoastal Waterway, the Neches River, and the Sabine River is expected to be a considerable tailwind for business. The location can accommodate 140 barges of various types and sizes.

The acquisition, expected to close by mid-August 2024, also includes eight motor vessels with 1,000 to 2,000 horsepower.

On July 11, Ampirical Solutions (“Ampirical”), a North Shore-based electrical engineering and software company, received a growth equity investment from a large California private equity group. Ampirical, which offers its electrical-focused services to the power market, struck a deal with the San Francisco PE firm SkyKnight Capital that will keep the company’s founders as significant shareholders and the existing management team in place.

Ampirical Co-Founder and President Matthew Saacks had this to say: “We are proud and excited to partner with SkyKnight as Ampirical continues to build on its mission to deliver high-quality engineering solutions to the power industry. SkyKnight’s investment will provide us with the capital and resources to enhance our offerings, expand into new markets, and deliver best-in-class service to our customers.”

Ampirical specializes in solutions for a wide range of applications, including design engineering of transmission and distribution systems, substations, and protective relays, as well as SaaS and cybersecurity for those involved in power markets.

As a part of the investment from SkyKnight, Ampirical will be launching an employee ownership program to further attract, retain, and award its employees, underscoring the company culture that the owners and management have fostered.

Also receiving growth capital in July was hampr, an app-based wash and fold laundry service with delivery to your door within 24 hours. hampr received a minority capital investment from Benson Capital Partners to support expansion of its footprint. The business, started by Lafayette owner Laurel Hess less than two years ago, is now in the New Orleans market and 13 others. It includes Dallas, Phoenix and Denver. Its peer-to-peer model allows it to scale quickly with minimal capital expenses, which has led to its quick growth.

Mike Katz, managing director of Benson Capital Partners, believes hampr’s success across its expanding footprint signals that a strong marketplace is emerging within this sector. Competitors such as Rinse in San Francisco and Poplin in Minneapolis are also venture backed.

Realizing a gain on an investment, Ballard Brands of Mandeville sold two restaurant brands which it acquired in a 2018 bankruptcy sale. Amada Tapas y Vino and Village Whiskey, concepts of celebrity chef Jose Garces, were sold by the North Shore hospitality and foodservice company to SPB Hospitality for an undisclosed sum.

SPB Hospitality operates 37 restaurants spanning 37 states and territories of the U.S., notable, national brands Logan’s Roadhouse, Krystal, Old Chicago Pizza + Taproom, J. Alexander’s. The buyer plans to expand Amada and Village Whiskey in suburban areas and urban centers in mid-sized to large metropolitan areas.

Ballard Brands operates a number of food- and hospitality-related brands, including PJ’s Coffee of New Orleans, WOW American Eats, New Orleans Roast, and Ideation Hospitality. The company’s founders, Paul, Steven, and Scott Ballard, found early success operating franchises for Smoothie King and PJ’s Coffee in Louisiana, Georgia and North Carolina, before returning to partner together on franchises in their home state.

G.F. Gay Le Breton is managing director for Chaffe & Associates Inc., responsible for the corporate finance activities of the firm. Liam Norton is a corporate finance analyst with the firm. Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC. For more information, visit http://chaffe-associates.com.