Borgman Capital Acquires Minnesota Tile & Stone
Company will merge with K.G. Stevens; Jason Gaare named president
MILWAUKEE – (JANUARY 11, 2023) – Milwaukee private equity firm Borgman Capital announced today its acquisition of Minnesota Tile and Stone (MTS). The company will be merged with Borgman Capital’s portfolio company, K.G. Stevens. The acquisition enables both companies to expand their Midwest footprint and diversify their product offerings.
Borgman Capital also announced that Jason Gaare has been named K.G. Stevens president. In addition, MTS previous owner and president, Alan Dale retired effective with the transaction’s completion.
"MTS and K.G. Stevens share a standard of high-quality product offerings and best-in-class customer service,” said Sequoya Borgman, Borgman Capital’s founder and CEO. “These shared values, geographic proximity and immediate benefit to customers of both companies make the acquisition a win-win, as well as opportunities for future innovation. Under Jason’s leadership we have the technical, customer and people management skills to lead this expanded organization into is next successful phase.”
Founded in 1930 in Minneapolis, MTS offers a unique selection of specialized products, including tile, custom fabricated natural stone, quartz, and porcelain countertops, and brick fireplaces to residential and commercial customers. MTS has five showroom locations throughout the Twin Cities in Lakeville, Minneapolis, Minnetonka, Plymouth and Woodbury, Minn.
Reflecting on his nearly 50 years with MTS, Alan Dale said, “I have been blessed with nearly 50 years involvement with MTS, a 92-year family business. I started my journey in the early 1960’s riding delivery trucks, unloading boxcars and sweeping warehouse floors. I met many incredible people throughout the US and Europe; several becoming mentors and taking me under their wing in my early years. None of this exciting and long career would have been possible without great suppliers, customers, and teammates. Thanks for the ride. MTS has a great management team and with Borgman Capital, can grow and prosper.”
Based in Milwaukee, K.G. Stevens is the largest countertop fabricator in Wisconsin and was acquired by Borgman Capital in October 2022. Both companies sell to a blend of new construction and remodeling projects and serve customers in residential and commercial end markets. “With the addition of MTS to our existing business, we have tremendous opportunity to grow our products and services for both existing and new customers on a solid foundation of great people and high quality craftmanship,” Gaare said.
Gaare joins K.G. Stevens from metal fabricator Super Steel based in Mequon, Wis. where he most recently served as president. He also held various leadership roles with Super Steel since 2005 including chief financial officer, general manager, vice president of sales and materials, and vice president of operations. He holds a Bachelor of Science in Mechanical Engineering and an MBA from Marquette University.
Associated Bank provided senior financing. Milwaukee-based Reinhart Boerner Van Deuren s.c. served as legal counsel. Accounting diligence and advisory services for the transaction were performed by Sikich.
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About Borgman Capital
Borgman Capital is a Milwaukee-based private equity firm focused on investing in profitable and stable lower middle-market businesses with annual revenue between $10 and $100 million. We are opportunistic in nature, ready to explore deals in a fair, flexible and creative manner. Learn more at.borgmancapital.com.
About Minnesota Tile and Stone (MTS)
Founded in 1930 in Minneapolis, MTS has grown to become the premier tile and solid surface provider in the greater Twin Cities. MTS sells a unique selection of specialized products, including tile, custom fabricated natural stone and porcelain countertops, brick, and fireplaces to residential and commercial customers. MTS has five showroom locations located in Lakeville, Minneapolis, Minnetonka, Plymouth and Woodbury, Minn. Learn more at mntile.com.
About K.G. Stevens
K.G. Stevens is Wisconsin’s largest wholesale fabricator and installer of quartz, natural stone, solid surface, ultra-compact, sintered and porcelain countertops. Additionally, the company offers pre-built and ready to install cabinetry and luxury appliances including Kohler products. K.G. Stevens products are sold to commercial and residential markets via builders, contractors and architects, as well as direct-to-consumer via its showroom, website and membership club partners such as Costco. The company is committed to quality craftsmanship, outstanding installation, and excellent customer service. Learn more at kgstevens.com.