Team Lab

Finding the right partner to help drive growth.

Team Lab has been acquired by Lightspring Capital Partners

Based in Detroit Lakes, Minnesota, Team Lab is a recognized leader in the specialty chemical industry. Team Lab offers a suite of products and supplies for paved surface construction and maintenance, wastewater and pool treatment, turf care, building surfaces and floors, and boiler systems. The Company is widely known for BASE ONE, a patented and cost-effective aggregate base stabilizer for road structures that improves road strength and stability and reduces maintenance costs. BASE ONE is used in new construction, reconstruction, full depth reclamation, and chip seal application, or used simply to stabilize aggregate surface roadways. Team Lab sells its products and solutions to cities, counties, municipalities, schools, hospitals, construction companies, and other commercial businesses.

Situation Overview

Owners Terry and Michelle Maier were looking for a partner who would provide them with liquidity and help them execute an aggressive growth plan.

Thank you, Vermillion Capital! You kept us calm and helped guide us through our first business sale, which had a wonderful outcome! You had the intelligence, experience, and resourcefulness to get us the best deal. – Michelle Maier, Owner, Team Lab

M&A Transaction Process

Vermillion worked closely with Team Lab for several months to prepare the Company for its sale prior to going to market. Vermillion advised Team Lab on several strategic initiatives and decisions, including:

  • Advised Team Lab on building a detailed roadmap for growth for the Company’s patented BASE ONE product.
  • Advised Team Lab on analyzing its financials to identify add-backs to EBITDA to ensure the owners were getting full credit with respect to valuation from buyers.
Prospective Buyers Signed NDAs
First Round Bids
%
Premium Over Next Highest Bidder

Result

Through a broad marketing process, Vermillion spoke with over 150 prospective buyers and secured 31 first round bids. Team Lab was sold to Lightspring Capital Partners at an 8.3% premium to the next highest bidder.

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