H.I.G. Capital buys BIC Graphic for $80M
Business as usual can be expected for the promotional products business. BIC Graphic soon will be sold, but people who work at the Red Wing facility can expect to see little change in the coming months, according to company officials.
BIC Group announced Tuesday, June 6, that it has signed a purchase agreement to sell operations to H.I.G. Capital.
The global U.S. private equity firm has bought BIC Graphic North America and Asian Sourcing operations for $80 million. The closing is expected to happen no later than June 30.
Vice President and General Manager of BIC Graphic North America Emmanuel Bruno stated that after a strategic review of the promotional products division, BIC Graphic would be better served under new ownership.
“Ultimately, the review legitimized that North America, along with the Asian Sourcing Division, was a truly stand alone, profitable entity,” Bruno said.
Looking forward, the Red Wing facility at 5151 Moundview Drive, can rest assured that nothing will change, Bruno told the Republican Eagle, including that the management team will remain in place and run the day-to-day operations of the company.
With new support, BIC Graphic could even see some of the company’s planned initiatives be accelerated, Bruno said.
“There are exciting things coming at each of our sites, all already planned for and unrelated to the review and sale of the company, such as R&D initiatives, improvements in manufacturing and imprinting capabilities,” Bruno said. “As well as our ongoing commitment to customer integration and making it easier to do business with us.”
Once the city of Red Wing and its Port Authority were made aware that BIC Graphic would be purchased by H.I.G., Shari Chorney, business development manager, contacted BIC to ensure the new owner understands the community’s support for this promotional products business.
The city and Port Authority has also partnered with H.I.G. on potential opportunities in Red Wing as part of its efforts to expand and retain area businesses. The Port Authority has assisted the BIC Group in Red Wing in a variety of ways, including providing funding for additional parking after the 2010 expansion by utilizing the Greater Minnesota Business Development Public Infrastructure Grant.
“During my first month here in Red Wing, I was able to meet with BIC management at their facility,” said Dan Rogness, community development director for Red Wing. “They are an important part of this city’s economy, and I know the city and its Port Authority will continue to support this business and its new ownership team.”