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After a winding road to development, work expected to start on new downtown building, PAGE 3 FEBRUARY 29-MARCH 6, 2016

Were Who gave what? Crain’s searched federal records to find out who some of the state’s business and government leaders have warnings missed? backed for president. The results reflect a sampling of $2,700 individual contributions. More donors on Page 25. Michigan donors gave more than $5 million to candidates By Robert Snell signs of revitalization in Detroit. A through January, months before the March 8 primary. [email protected] recession or poor market perform- All Candidates $5,411,523 Paul (R)* $198,289 Mayor Mike Duggan’s revelation ance by the city’s two pension funds Republicans $3,689,330 Fiorina (R)* $101,639 that the city faces a $491 million could even mean Detroit would be pension fund shortfall shocked forced to pay more than $491 mil- Democrats $1,718,804 O’Malley (D)* $31,131 legal experts and city officials who lion starting in 2024. Clinton (D) $1,174,906 Trump (R) $27,067 thought Detroit had left budget- “If there is a change in the market Dan Gilbert Richard DeVos Sr. Bush (R)* $998,093 Christie (R)* $24,075 busting problems behind in bank- ... going forward, it could have an Carson (R) $862,147 Graham (R)* $21,635 $500,000 + $750,000 $250,000 ruptcy court. impact on how large the deficit is in Rubio (R) $618,459 Jindal (R)* $11,300 Interviews and court records, 2024,” Detroit’s CFO John Hill said. America Leads, Right to Rise USA, however, offer insight into what The city’s bankruptcy plan, final- pro-Chris Christie pro-Jeb Bush Cruz (R) $508,109 Huckabee (R)* $8,179 might have caused a half billion-dol- ized in 2014, always prescribed a super PAC super PAC Sanders (D) $504,517 Santorum (R)* $2,367 lar threat to Detroit’s budget and re- balloon payment in eight years. $100,000 $250,000 Kasich (R) $235,787 Pataki (R)* $500 veal missed warning signs during the That payment was expected to be New Day for America, Conservative Solutions, * Suspended their campaigns frantic pace of the largest municipal $111 million. pro-John Kasich pro-Marco Rubio bankruptcy case in U.S. history. The city’s bankruptcy plan calcu- super PAC super PAC Duggan said the $491 million lated the payment after projecting shortfall is not yet a crisis for De- the life expectancy of city retirees troit, which shed about $7 billion in based on old mortality tables, from debt during the bankruptcy. That’s the year 2000, according to the De- because the city has a projected $30 troit Financial Review Commission. million surplus this fiscal year — “They assumed people were not money that will be used in the short going to live as long as they would,” term to help fill the pension gap. Duggan said during the Feb. 23 But the shortfall has emerged State of the City address. Tom Gores Peter Karmanos Jr. Roger Penske David Cotton during a national economic recov- Duggan did not identify which ery that may be peaking and amid SEE PENSIONS, PAGE 24 $2,700 $2,700 $2,700 $2,700 Hillary Clinton Marco Rubio Jeb Bush John Kasich OldOldmoney,money,newnewdirectiondirection State’s major givers target candidates in changing presidential field

By Lindsay VanHulle DeVos, Meijer, Schuette and Schostak — Crain’s Detroit Business/Bridge Magazine back now? LANSING — Michigan loves Jeb Bush. “With him getting out, it just kind of shows Until recently, the former Florida governor that there are a lot of different people who are was the top fundraiser of all presidential candi- important players in GOP politics up for grabs,” 2015 M&A — a huge deal dates in the state, regardless of political party, ac- said Craig Mauger, executive director of the Michi- cording to campaign finance records released by gan Campaign Finance Network. We’ve been tracking big deals for years. And 2015 was the biggest. the Federal Election Commission. “It’s almost like they’re trying to put their chips Crain’s found 138 deals in Michigan last year worth at least $10 million, But Bush, trailing in early primaries, suspend- on different people,” said Mauger, adding that and those deals added up to $101.5 billion. ed his campaign more than a week ago after re- U.S. Sen. Marco Rubio of Florida and Ohio Gov. sults were tallied in South Carolina, despite rais- John Kasich could be likely contenders. That figure was buoyed by the biggest deal in Michigan history — Dow ing and spending millions in his bid to be third in Some backers, indeed, have donated to sever- Chemical Co.’s $65.6 billion merger with fellow chemical competitor his family to win the White House. And in Janu- al candidates in hopes that one will emerge as DuPont. ary, Democratic candidate Hillary Clinton sur- the candidate in a large Republican primary. But the rest of the deals were frequent — and diverse. Food, technology, passed him as Michigan’s overall fundraising The billionaire DeVos family of West Michigan, health care, automotive — all are highlighted beginning on Page 9. leader. long influential in Republican politics, has cho- Which raises the question: Who will Bush’s sen to endorse Rubio now that the field has nar- biggest Michigan supporters — with names like SEE DONORS, PAGE 25 © Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 32 No 9 $2 a copy. $59 a year.

Merging of the Minds We make M&A manageable NEWSPAPER 20160229-NEWS--0002-NAT-CCI-CD_-- 2/26/2016 3:59 PM Page 1

2 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016

payments,” said Dave Hurst, direc- Francisco-based ride-hailing MICHIGAN tor of market analysis for Detroit- company defended its screening INSIDE based NextEnergy. “With policy up of drivers, saying it couldn’t have THIS ISSUE in the air at the moment, it’s hard to predicted that driver Jason Dal- BANKRUPTCIES ...... 7 CALENDAR ...... 20 see a strong incentive for invest- ton would engage in the random CLASSIFIED ADS ...... 21 ment. These markets don’t like tur- shootings that left six people DEALS & DETAILS ...... 19 bulence, and Michigan is certainly dead in Kalamazoo Feb. 20, AP re- MARY KRAMER ...... 6 BRIEFS setting the stage for turbulence in ported. Uber said its safety proce- OPINION ...... 6 the next couple of years.” dures don’t need to change. But PEOPLE ...... 20 Senators reach deal on that they think could have helped Comprehensive energy propos- some experts say the company RUMBLINGS ...... 27 water crisis,but vote delayed prevent the public health crisis in als in the state House and Senate must take a harder look at poten- WEEK ON THE WEB ...... 27 Flint, AP reported. Sponsors of a bill include changes that would reim- tial drivers if it wants to convince Senators from both parties in package that would restore com- burse generators for excess electric- riders the service is safe, even as Washington reached a tentative missions to oversee the Department ity at wholesale, rather than retail, they agreed that Dalton wouldn’t COMPANY INDEX: $220 million deal to address the of Environmental Quality said during rates. A similar change in Nevada have raised red flags because he SEE PAGE 25 water crisis in Flint and allow a a news conference that the com- reportedly drove several large in- didn’t have a criminal record. long-stalled energy bill to move for- missions would help curtail future stallation businesses — and hun- Ⅲ The Grand Rapids-Wyoming gan Strategic Fund, a division of the ward, although presidential candi- lead-contamination crises. dreds of jobs — out of the state. market ranks No. 16 in a ranking of Michigan Economic Development Corp. date Ted Cruz and other Republi- the “Best & Worst Cities for Women- The one-year contract includes four can senators initially held up the Report: Solar industry MICH-CELLANEOUS Owned Businesses” by WalletHub, annual renewal options. legislation last week, The Associat- outlook to improve in state the Grand Rapids Business Journal Ⅲ The historic Capitol Theater in ed Press reported. Ⅲ Dow Chemical said it will pay reported. The analysts compared downtown Flint is inching its way A proposal by Sen. Debbie A recent solar jobs report says $835 million to settle a long-stand- the top 100 metro statistical areas in toward renovation after getting $5.5 Stabenow, D-Mich., and Sen. James Michigan stands to boost industry ing class-action lawsuit, after the 10 metric areas. Nashville, Tenn., million from the Michigan Strategic Inhofe, R-Okla., would authorize employment by 14 percent this death of Justice Antonin Scalia de- ranked No. 1; Detroit was 46th. Fund, MLive.com reported. The $100 million in emergency aid to fix year, but those in the sector say the creased its chances of prevailing at Ⅲ The state’s Pure Michigan project includes an 1,800-seat the- and replace Flint’s lead-contami- long-term outlook is much more the U.S. Supreme Court, AP reported. tourism website is getting an over- ater with 21,000-square feet of of- nated pipes and $70 million in uncertain, Midwest Energy News re- The Midland-based company was haul — with help from a Florida- fice space. The project also will get a loans to improve its water infra- ported. found liable in 2013 by a Kansas based marketing company. Miles $500,000 grant from the Michigan structure. The deal also authorizes Smaller, distributed projects jury of allegedly conspiring to fix Media Group LLP, based in Sarasota, State Housing Development Authority $50 million nationwide to bolster have largely fueled Michigan’s solar prices for polyurethane, an indus- Fla., won a $389,690 contract to re- and an expected $3.7 million feder- lead-prevention programs and im- growth, though analysts project the trial chemical used in everything build Michigan.org from the Michi- al Historic Tax Equity. Ⅲ prove children’s health. Cruz at first next wave will come from utility- from packaging to car interiors. The objected to a quick vote, delaying sale projects. Advocates say the judgment dealt with alleged com- Correction Senate consideration, but he later solar industry has been steadily im- pany actions between 2000 and removed the hold placed on the proving, but distributed generation 2003. Dow had petitioned the high The story “Acquisitions drive record growth of brokerage bill. growth could be limited under utili- court to reconsider the judgment. Acrisure” on Page 13 of the Feb. 22 issue should have said Acrisure has In related news, Democratic law- ty-backed policy changes before Ⅲ Uber is again facing tough offices in 11 cities in Michigan, including Caledonia, Grand Rapids, makers from Flint and Detroit said the state Legislature. questions about safety after one Kalamazoo, East Lansing, Traverse City, and five in the De- they have proposed restoring envi- “The installer base is going to be of its drivers was charged with troit area. Incorrect information was provided by the company. ronmental oversight commissions heavily influenced by the return on murder. The fast-growing, San

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CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 3 DMC,WSU med school work to reach new pact

By Jay Greene nations and contribute to the financial lion in 2015 compared with $68 mil- private doctors for follow-up care help it become a top 15 academic [email protected] turnaround at Wayne State medical lion in 2009 — for teaching, clinical rather than WSU specialists, DMC health system, and Wayne State Contract talks began earlier this school and faculty practice plan. and administrative services. paying less per full-time equivalent wants DMC to help it achieve a top month between top officials at Detroit Since 2009, when the current con- From 2011 to 2015, Wayne has doctor and DMC paying WSU doctors 40 medical school ranking. Medical Center and Wayne State Universi- tract was negotiated after former been paid a collective $48 million less for indigent care because Healthy Over the past month, Joe Mullany, ty School of Medicine over how to struc- DMC CEO Mike Duggan in 2008 less than it expected under the con- Michigan Medicaid expansion has re- CEO of DMC, and David Hefner, new ture a long-term deal between two unilaterally stopped making $1.6 tract by DMC, according to Wayne duced the ranks of the uninsured. vice president for health affairs of health organizations that have seen million monthly payments to Wayne State officials. With the contract expiring March Wayne State, have been meeting once years of tension. If an agreement is State, DMC has paid the medical The amount has dropped for a 31, DMC and Wayne State want to a week to negotiate a long-term deal. reached, Wayne State and DMC could school and faculty group practice an number of reasons, say DMC and radically overhaul the often stormy “We want more alignment be- end years of disputes and service elimi- ever-declining amount — $51 mil- Wayne. They include DMC assigning relationship. DMC wants Wayne to See PACT, Page 23 Local roads likely to get first bump in state funds By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine LANSING — When the first of Michigan’s new revenue for road projects shows up early in 2017, local roads are likely to benefit most at first. That’s because nearly two-thirds — 61 percent — of the income from increased gas taxes and vehicle reg- istration fees that kick in Jan. 1, 2017, would be distrib- A look at 2017 uted to county road project road agencies, plans, at a cities and villages. glance, In all, Gov. Rick Page 21. Snyder budgeted an extra $533 mil- LARRY PEPLIN Jim Jenkins (left) and Christopher Jackson at the property they intend to develop at Woodward Avenue and Stimson Street. lion for transportation during the 2017 fiscal year that starts Oct. 1. Of that, roughly $465 million will be the result of the new tax and fee revenue collected starting in the second quarter of the next fiscal year, said Ed Building character Timpf, budget officer for the Michigan Department of Transportation. By Kirk Pinho fell through. Queen Lillian couldn’t get a con- “We’re definitely excited about [email protected] The Mondrian on track struction loan without half of the building pre- some of the additional revenue,” After false starts, raised hopes and a U-turn leased due to lending standards. said Ed Noyola, deputy director of on the road to construction, work on a new after struggles The tenant that originally expected to occu- the County Road Association of Michi- mixed-use building downtown Detroit is ex- py the medical office building, the Wayne State gan, which represents road agencies pected to begin in July. an $18.4 million medical office building a University Physicians Group, backed out of dis- serving the state’s 83 counties. “That The Mondrian — named after Dutch painter mile away. cussions after finding another site just up takes a big load off of the general Piet Mondrian, who inspired the De Stijl archi- Yes, development and redevelopment have Woodward north of Mack Avenue. (That proj- fund, for now.” tecture mode in which the building is de- rebounded in a meaningful way in Midtown ect hasn’t yet begun construction because of As part of the package Snyder signed — is expected to bring up to 108 apart- and downtown. But even in the improved en- the physicians group’s financial woes.) The signed in November, the state’s flat ments and 15,000 square feet of retail space to vironment, developers of all sizes must hit the DMC was also courted to occupy the building. 19-cent per-gallon gasoline tax will the west side of Woodward Avenue, south of occasional curveball and react to changing After losing the physicians group, Jackson rise by 7.3 cents in 2017, while Martin Luther King Jr. Boulevard. market conditions. turned his attention to smaller medical office Michigan’s 15-cent diesel tax climbs It’s been Detroit-based Queen Lillian Develop- Planned occupancy of The Mondrian, origi- tenants — the private practices of doctors and by 11.3 cents. Both will be tied to in- ment LLC and developer Chris Jackson’s tale of nally proposed as a complementary 75,000- dentists, for example. Although he had inter- flation starting in 2022. Vehicle reg- stalled and then restarted development efforts square-foot medical office building within See MONDRIAN, Page 22 See ROADS, Page 21 at the 1.6-acre site after finishing Queen Lillian I, field-goal length of the Detroit Medical Center,

MUST READS OF THE WEEK Empowering workers Postcards from Motown Empowerment Plan ramps up jobs training program, 20 winning postcards picked for display at Detroit-themed pavilion looks to raise money, plans expansion to other cities, at international architecture show, Page 27 Page 4 Full gallery at CrainsDetroit.com. 20160229-NEWS--0004,0005-NAT-CCI-CD_-- 2/26/2016 1:41 PM Page 1

4 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 Sleeping bag coat maker to scale up worker education,job programs

By Sherri Welch tion and college education online [email protected] or at area institutions. The Empowerment Plan is known The Empowerment Plan about for the sleeping bag coats its for- six months ago began offering all merly homeless employees in De- but the college education free to troit sew for others sleeping on employees during paid work hours. streets around the world. JOHNSON CONTROLS That enables more of them to take By 2020, it’s hoping to be known Sleeping bag coats are sewn by formerly advantage of it by removing trans- as much or more for its employ- homeless employees. portation and child care barriers ment and education program and spaces and move from Corktown that arise with after-hours and off- job placement. creative incubator Ponyride during site programs, Scott said. The nonprofit has set a goal over the third quarter, Scott said. Pro-Literacy Detroit, Level One the next five years to rotate 600 peo- New employment Bank, the Coalition on Temporary Shel- ple through its one- to three-year ter (COTS) and 2-Way Communica- employment and education pro- During the second half of the tions LLC are providing the educa- gram as a steppingstone to other year, The Empowerment Plan will tional programs. living-wage jobs in the community. hire 22 new employees to cut and The Empowerment Plan also To fund the plan, it’s launched a sew the sleeping bag coats, adding gets employee referrals from COTS campaign to raise $6 million to to its current 30. and taps the Neighborhood Service $8 million and soon will begin pro- As with existing employees, the Organization to help distribute the duction of a limited-edition coat new hires will be offered the op- sleeping bag coats. that will debut in the retail market portunity to attend two hours of Three of its employees are using through online hub Kickstarter dur- classes during each workday: in fi- the paid educational time to take on- ing the fourth quarter. nancial literacy, professional/lead- SINCERELY INVESTED IN YOU Once it’s scaled up the employ- ership development, GED educa- SEE NEXT PAGE ment and education program in At our firm, we value our team and clients like family. Detroit, it plans to take the model to Our investment advice is tailored for each institution three other cities by 2020, beginning with or Flint and then to and individual. cities such as Cleveland, , New York and San Francisco. “Our focus is (now) on employ- ment, not ... creating more coats,” said founder and CEO Veronika A Fee-Only Wealth Management Group Scott, a College for Creative Studies alumna and metro Detroit native. “The coats are a vehicle to do Michigan’s Top NAPFA-Registered that, mind you, but they don’t come * before people.” Fee-Only Financial Advisor The Empowerment Plan will look Invested alongside to hire people who are homeless or you since 1976. served by a housing program and have family depending on them in a bid to help end generational pover- ty, said Scott, 26, who was named Member FINRA/SIPC among 40 nonprofit trailblazers across the country highlighted by Investment Advisors s (866) 644-2701 s www.GJSCO.com The Chronicle of Philanthropy in January for crafting new approach- Charles C. Zhang es to entrenched problems. She also CFP®, MBA, MSFS, ChFC is a Crain’s 20 in their 20s winner. Managing Partner Many of the people in Detroit shelters were born and raised in the city and don’t have the requisite ed- ucation or work experience, she said. And they can’t compete for the jobs that are being created. “There is a whole group of people who are getting left behind ... (who) need a steppingstone into this new economy,” Scott said. Jessica L. Rossana, CFP® Jeremiah Ludington III, JD Director - Client Services Manager - Client Services Since its launch four years ago, The Empowerment Plan has pro- duced about 15,000 sleeping bag We Uphold a Fiduciary Standard coats, Scott said, for people in 30 states, six Canadian provinces, New 101 West Big Beaver Road Zealand, Australia, Switzerland, Sweden, Malaysia and France. 14th Floor As it continues to produce coats Troy, MI 48084 for the homeless, it plans to add a new cutting operation, with equip- (248) 687-1258 (888) 777-0126 ment and training donated by Carhartt Inc. www.zhangfinancial.com To accommodate the cutting op- Assets under custody of LPL Financial and TD Ameritrade. eration and production of a coat for *Charles Zhang is Michigan’s Top Advisor as reported in Barron’s February 23, retail sale, the nonprofit is looking 2015. Factors included in the rankings: , revenue and in Detroit at two new, light-industri- the quality of the advisors’ practices, and other factors. NAPFA-Registered al spaces of about 15,000 square status reported as of September 18, 2015 on www.napfa.org. feet. It plans to choose one of the Minimum investment requirement: $1,000,000 20160229-NEWS--0004,0005-NAT-CCI-CD_-- 2/26/2016 1:41 PM Page 2

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 5

FROM PREVIOUS PAGE

line college courses or attend class at the University of Phoenix, she said. That college education was some- thing they took the initiative for. “Now ... we’re in the process of setting up a fund to pay for those col- lege courses for individuals who want to take education to the next level,” Scott said. As planned, by 2017 there will be 60 employees in the program at any given time, with about 30 graduating into other, living-wage jobs in the community each year. She said it’s a little scary to add job placement to the things The Em- powerment Plan is offering its em- ployees, but the goal is to give them a baseline so they can compete, and give them a living wage of $12-$15 per hour. The model is already working, she said, noting that three of The Empowerment Plan’s former em- ployees moved onto jobs at Quick- en Loans Inc., FCA US LLC (formerly Corp.) and a home health care agency last year. Other companies, such as Shino- la/Detroit LLC, whose president, Jacques Panis, sits on The Empower- ment Plan’s board, have also indicat- ed interest in hiring the nonprofit’s employees, Scott said. Retail effort The Leader in A core group of six to 12 of the De- troit-based nonprofit’s seasoned Shareholder Rights employees will move into the retail coat production. The Empowerment Plan expects to produce and sell 3,500 of the 2016 limited-edition coats beginning in October, initially through Kickstarter and then through its own website, with new, limited editions produced each year for a yet-to-be-determined price. YOUR PLANE SHOULD BE “The product we make serves a critical need in the community, and BASED WHERE YOU ARE. at the same time it could stand on the shelf of any store and it wouldn’t need the story of who made it to sell Locally based facilities, fleet and full-time it,” Scott said. professional team provide our Southeast What The Empowerment Plan Michigan members best-in-class personalized is doing is bigger than teaching services, availability and cost efficiencies. people how to sew, said Pamela Moore, president and CEO of the Detroit Employment Solutions Corp., a nonprofit workforce development agency for the city. Scott is teaching them how to stand on their own, she said. According to research J.P. Morgan Chase & Co. commissioned from the Corporation for a Skilled Workforce and released in January, there are about 248-461-9001 | corporateeagle.com 228,500 people unemployed or not participating in the Detroit work- force, Moore said. Those are most likely people who don’t have the technical skills that are needed or employability skills, from filing out an application to conflict resolution and knowing what employees ex- pect on the job, she said. Scott and The Empowerment Plan will give some of those people the tools they need to be independ- ent, Moore said. “Those people are going to be able to buy homes, pay taxes ... put their children in good schools ... and be a benefit to the community.”Ⅲ Sherri Welch: (313) 446-1694 Twitter: @SherriWelch 20160229-NEWS--0006-NAT-CCI-CD_-- 2/26/2016 5:34 PM Page 1

6 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 CRAIN’S LETTERS DETROIT BUSINESS Blame politicians,not bankers,for housing mess

Editor: While many people expected the Send your letters: Crain’s Detroit In a Feb. 8 Crain’s Detroit Business housing bubble to burst, few fore- Business will consider for OPINION column, Publisher Mary Kramer saw the contagion. As the financial publication all signed letters to the advocated seeing the movie “The system locked up, the powers-that- editor that do not defame Big Short” to better understand the be insisted that all assets be individuals or organizations. Letters mortgage meltdown of 2008. She “marked-to-market.” That made will be edited for length and clarity. interviewed a prominent Detroit at- the meltdown much worse. State must be open torney who said, “Banks were mak- Email: [email protected] The other major decision by the ing risky big bets with all of our powers-that-be that exacerbated money” and “lots of people just subprime loans to avoid the gov- the crisis was the requirement that don’t understand this stuff.” Kramer ernment pitchforks. Of course, if underwater mortgages could not be added that “the movie’s cynical end- you offer a subprime borrower a refinanced to lower interest rates on mental health ing questions why nothing has hap- good deal, you have to offer at least and longer terms. After all, the pened to Wall Street to prevent an- as good a deal to a more qualified mortgage was underwater. The o we trust the state, under fire for the Flint water crisis, to do the right other meltdown.” Similarly, Greta borrower. If not, you are guilty of banks and the borrowers would thing when it comes to $2.4 billion in mental health funds? That’s the Van Susteren recently on her Fox discrimination. both have been a lot better off, but D amount at stake in the current rounds of state budget talks. News show lamented that no With the Fed setting interest rates federal lending requirements pro- In recent stories and blogs, our health care reporter, Jay Greene, has navigat- bankers have gone to jail for their artificially low, investors and their hibited such common sense. ed conflicting information, confusing language in proposed legislation and — role in the meltdown. These are advisers were looking for better And to answer the question: Why most recently — found some clarity from Lt. Gov. Brian Calley. common — but ill-founded — ac- yields and found them in CMOs haven’t any “bankers” gone to jail? A budget of $2.4 billion is a lot of money, and the plan to take funds from cusations and laments. (collateralized mortgage obliga- Actually, some “bankers” have been the public mental health services and create a “carve-in” to steer the money Some of us really do understand tions), which were created by in- fined and sent to jail. I put “bankers” through private HMOs for behavioral health benefits has raised red flags “this stuff.” There were a lot of par- vestment banks working with mort- in quotes because it is wrong to vilify with nonprofit and client advocacy groups. ticipants in this fiasco, and the so- gage banks. all people in the banking industry. Calley told Crain’s (read Greene’s blog at crainsdetroit.com) the state has called “bankers” are far down on the But how do subprime mortgages, There are retail bankers, commer- agreed to replace confusing boilerplate budget language with a consensus list. The Democrats in Congress when combined by the thousands cial bankers, mortgage bankers, in- proposal from work groups of stakeholders. had been pushing affordable hous- into a new security, suddenly be- vestment bankers, community Calley insists that using Medicaid HMOs to manage the funds doesn’t mean ing at least since the late 1990s. In come AAA-rated? That is the ques- bankers, etc. Then investment ad- privatization. That’s debatable. It does appear that slowing down the proposal the early, 2000s, CEOs at big com- tion for the three credit-rating agen- visers, investment brokers and to get everybody on board is a sign that the Flint crisis has made the adminis- mercial banks were hauled before cies that the federal government mortgage brokers are often thought tration more open to building consensus. congressional committees and sanctioned. Now the buyers of of as in this mix as well. If the prose- For someone dealing with a mental health issue, or for their families, the threatened with jail if they did not many of these CMOs were sophisti- cutors could have made a case prospect of losing a long-term relationship with a trusted provider or simply increase mortgages to subprime cated buyers, i.e. large financial in- against anyone, they would have. having to navigate a new claims system could be overwhelming. borrowers so that low-income stitutions. They should have looked So, yes, some people don’t under- No matter what is ultimately decided, the debate around this issue needs homeownership statistics could be beyond the credit rating at the qual- stand “this stuff” — and those who to be transparent and include all those involved, from consumers to mental improved. Much of this subprime ity of the underlying mortgages. But don’t and publish their misunder- health organizations. lending was made, insured by why bother when the mortgages are standings anyway, whether in print and/or endorsed by the Federal guaranteed, substantially and im- or film, can hide behind the First Housing Administration and its plicitly, by Uncle Sam? Amendment and freedom of the City faces questions on pensions subsidiaries, Fannie Mae and Fred- Independent auditors of any fi- press. Anyone seriously trying to die Mac, thereby giving the widely nancial organization buying these understand the issue could read ar- Last week, Detroit Mayor Mike Duggan shed some light on a city pension perceived federal government guar- collateralized subprime obligations guments on both sides before draw- liability concern that’s been brewing for some time. antee for these mortgages. The Wall should have looked past the credit ing conclusions. In November, after using new actuarials to project the city’s future pension Street Journal, among others, rating and demanded increased re- But the worst part? The powers- costs from retirees, Duggan said it’s now clear the city faces an additional warned often, beginning around serves or qualified their opinions on that-be are at it again. Even after $491 million in liability starting in 2024. It is mind-boggling to learn that out- 2002, that these government-sup- the financial statements of these or- Dodd-Frank and the Consumer Fi- of-date mortality tables were used to estimate how the liability would grow ported programs were privatizing ganizations — but it did not happen. nance Protection Bureau, even after over time. The bottom line, as reported in Robert Snell’s Page 1 story, is that profits and socializing losses. The Brokers were promoting these the $140B+ required to sustain annual payments starting in eight years will expand to $194.4 million a year. Bush administration went to Capi- securities as “safe as cash,” and li- Freddie and Fannie, the Democrats The pension shortfall shows how even after the bankruptcy exit, financial tol Hill 17 times trying to get legisla- brary districts in Australia (just to in Congress are back pushing af- stability in Detroit isn’t actually a known quantity. Will the city need another tion to correct this. U.S. Rep. Barney give a wacky example) and all sorts fordable housing. Dodd-Frank and “grand bargain” in the years ahead? As now-retired U.S. Bankruptcy Judge Frank, D-Mass., blocked such ef- of other naive investors worldwide the CFPB raise the cost of doing Steven Rhodes warned during Crain’s 2015 Newsmaker event, cities need to forts, famously saying that he would were piling into these investments, business and drive business off- consider switching to 401(k)-style defined contribution plans in order to rather “roll the dice” than cut back with no clue as to the risk they were shore. But they will do nothing to grapple with mounting liabilities. Did Detroit miss the boat? And what hap- on affordable housing programs. taking. The more the naive de- prevent the next meltdown. pens next? He rolled the dice; the country lost. manded these securities, the more Ed Clarke These are big questions for the mayor, and other local municipalities. So the “banks” promoted these were cranked out. Ann Arbor Crime Stoppers gained respect by focusing on the right thing: Customers Who are your customers? crimes. Broad retired recently after who are Crime Stoppers’ cus- ond-highest tip rate among Crime At Crain’s Detroit Business, “Read- an 11-year run. tomers? The victims? Their families? Stoppers units in the U.S. ers first” has been the mantra since Broad was an early adopter of the Law enforcement who rely on the Many of these thousands of tips company founder G.D. Crain set career path that leads for-profit exec- tips? He credits his business back- ultimately led to convictions — that as a foundational principle. It utives to nonprofit leadership. He ground for helping to identify the earning Broad some local notoriety. seems to have served us pretty well. used to own and operate a steel real customer — the tipster. Broad said that he was in a car wash Today, our publication’s audience company but became passionate “The important thing was to get recently and an employee walked includes 26,000 print subscribers about public safety while helping to the trust of the community. We up to him and said: “I heard you had and 230,000 registered website MARY KRAMER: create the forerunner to Crime Stop- guarantee their call will be anony- retired. Good luck.” users. About 5,000 people attend Publisher pers — the Alliance for a Safer Greater mous,” Broad said. “People are fear- Broad said: “I don’t know if he Crain’s events each year. Detroit. The group spun out of work ful of potential retaliation. We need was a family member or a tipster.” The second most important cus- tomers to keep front and center in within the Detroit Regional Chamber. to get their trust. If the tipster does- Either way, I think he was a tomer? The folks who buy advertis- your priority setting. The alliance supported a multi- n’t have a good experience, they customer. ing or use marketing plans that use Identifying the right customer agency task force to catch fugitives, won’t come back.” Mary Kramer is publisher of Crain’s print and digital advertising and was paramount to John Broad started a college program for at-risk And in fact, serial tipsters have Detroit Business. Catch her take on event sponsorships. But without an when he became CEO and presi- kids and created the freeway cour- offered help in solving ever-more- business news at 6:10 a.m. Mondays engaged audience, those customers dent of Crime Stoppers of Michigan, tesy patrol for stranded motorists on serious crimes. on the Paul W. Smith show on WJR would almost certainly look some- which makes cash awards to Detroit highways, now run by Michi- Tips to the nonprofit rose from AM 760 and in her blog at where else. No matter the organiza- anonymous tipsters whose infor- gan Department of Transportation. 1,000 in 2004 to about 7,000 tips a www.crainsdetroit.com. tion type, there are always key cus- mation leads to convictions in As the new CEO, Broad asked: year, which Broad said is the sec- 20160229-NEWS--0007-NAT-CCI-CD_-- 2/26/2016 5:02 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 7 Level One may consider IPO after growth to $1 billion level By Tom Henderson and through possible acquisitions. “From a size perspective, portunities for us to capture market [email protected] From the end of the third quarter share,” said Fehring. Now that Farmington Hills- to the end of 2015, the bank grew its (the billion dollar level) Bank of Michigan, despite the based Level One Bancorp Inc. has be- assets by about $23 million. takes us to the next level, to name, had just one branch. Mon- come a billion-dollar bank, it is Fehring said two major bank ac- day’s closing gives Level One 11 time to consider an initial public quisitions announced in January the next bracket of peers. ... branches. In October, it opened offering, says President and CEO also present an opportunity for Once you get to that size, its first branch in Detroit, in the Patrick Fehring. Level One to add customers and Julian Madison Building at 1420 Wash- A deal Level One announced in assets. the question about ... an IPO ington Blvd. October to buy Farmington Hills- On Jan. 26, Midland-based Chem- starts being asked.” The closing had been contingent based Bank of Michigan was sched- ical Financial Corp. announced it was on approval by Bank of Michigan’s uled to close on Monday, and would purchasing Talmer for $1.1 billion, Patrick Fehring,Level One Bancorp shareholders, the Federal Reserve push Level One past the $1 billion and Columbus, Ohio-based Hunt- Bank of Chicago, the Michigan Depart- threshold. ington Bancshares Inc. announced it little overlap, with only five or six branches, yet to be determined, will ment of Insurance and Financial Ser- Level One was one of a handful of was buying Akron, Ohio-based branch closings expected. But there be closed. vices and the FDIC. Ⅲ community banks that launched in FirstMerit Corp. for $3.4 billion. is substantial overlap with Hunting- “Changes in the local banking Tom Henderson: (313) 446-0337 2007, all of them with aspirations of Talmer and Chemical have very ton and FirstMerit, and numerous environment will present good op- Twitter: @TomHenderson2 going public sooner rather than later as a way of returning profits to original investors. But well before they got to the IPO stage, the Great Recession hit. One that launched within a few weeks of Level One was Troy-based First Michigan Bank, later renamed Talmer Bank and Trust, which had its IPO in 2014. According to filings with the Federal Deposit Insurance Corp., as of Dec. 31, the Bank of Michigan had $111 million in assets and Level One Bank had $923.5 million in assets. After Monday’s closing, Level One will have more than $1 billion in assets. “In our industry, from a size per- spective, that takes us to the next level, to the next bracket of peers, so that’s exciting,” said Fehring. “Once you get to that size, the question about whether to do an IPO starts being asked,” he said. “We’ve created good value for our shareholders, but at some point you need to look for liquidity, and an IPO could be part of that strategy. It will be something for the board to decide.” Another bank that launched in 2007, Novi-based Lotus Bancorp Inc., was bought by Level One last Febru- ary. Previously, it bought the assets of two financially troubled banks, You do business where we do business. Michigan Heritage Bank in 2009 and Paramount Bank in 2010. Both were based in Farmington Hills. We should meet. Talmer built its assets based through a series of acquisitions, be- ginning in 2010, of the assets of troubled banks shut down by feder- At Huntington we believe that a stronger business community makes the whole community stronger. al and state regulators, including That’s why we work so hard to truly understand your business goals, and to deliver the insights that Community Central Bank of Mt. Clemens, Peoples State Bank of can get you there. We’re proud of the place we call home, and together we can make it even better. Madison Heights and Citizens First Bank in Port Huron. Fehring said that pending any decision about an IPO — there is no timing, yet, to proceed — Level One will continue to grow organically

BANKRUPTCIES

The following business filed for protection in U.S. Bankruptcy Court in Detroit Feb. 19-25. Under Chap- ter 11, a company files for reorgani- zation. Burst Sound & Lighting Systems L.L.C., 6774 Brandt St., Romulus, vol- Member FDIC. A ® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. untary Chapter 11. Assets: Huntington® Welcome.TM is a service mark of Huntington Bancshares Incorporated. © 2015 Huntington Bancshares Incorporated. $763,434.51; liabilities: $467,834.65. Mike Lewis 20160229-NEWS--0008-NAT-CCI-CD_-- 2/26/2016 3:54 PM Page 1

8 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 CDB promotes Matt Langan M&A Experience to ad director ® A longtime Crain’s Detroit Busi- In Your Corner. ness advertising account executive has been named advertising di- Ŷ Mergers and acquisitions, , angel rector of the publication. Langan, 54, and , finance, and joint venture has been with transactions. Crain’s since Ŷ Commercial transactions, corporate structuring 1988 and was and succession planning, real estate transactions, promoted from tax planning matters, and 1031 exchange senior account transactions. executive. Langan is a graduate of Matt Langan: Has Wayne State been with Crain’s University and since 1988. is a retired military intelli- gence captain in the U.S. Army Reserves. “It says a lot about an organiza- tion when it can — and does — promote from within,” Crain’s Group Publisher Mary Kramer said. “Matt has been an informal leader for years, helping to train and orient new account execu- tives. Our portfolio of opportuni- ties — print, digital, event spon- First Tier Ranking in sorships and custom projects — Corporate Law and Commercial Litigation continues to grow, and Matt will ensure we are working collabora- Contact Pete Roth at [email protected] Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings tively with clients to help them reach their marketing goals.”

Nominees sought {Just right.} for 20 in their 20s It’s that time of year — time to nominate a 20-something pro- Which audit, tax, and consulting firm is the right size fessional who is making his or her mark in metro Detroit. for your organization? This program recognizes the hard work of local rising stars Too small and you may not benefit from industry experts and the while also giving them the op- bench strength to meet your needs. Too large and you could feel portunity to further propel their that your needs don’t come first. careers. Employers, take note: This is your chance to boast For more than 90 years, Plante Moran has delivered knowledge, about internal talent. pragmatism, and high-touch client service. Last year, 97% of our Candidates for Crain’s 20 in clients said they receive solutions that are relevant and address their 20s include up-and-com- ers making waves within a com- their business needs. pany, men and women who have shown success or originali- If you want to experience the Plante Moran difference, ty as entrepreneurs, or those contact us today. who have made an impact in civic or community leadership A higher return on experience. roles. Winners will be profiled in Crain’s. Nominees must be 29 or younger before June 1. Nomina- tions are due Feb. 29. To fill out the form, visit crainsdetroit.com/nominate. Read about last year’s 20 in their 20s class at crainsde- troit.com/20. Gordon Krater, managing partner Questions? Contact Crain’s 248.223.3262 Assistant Managing Editor [email protected] Kristin Bull at [email protected] or (313) 446-1608, or Special Pro- Interested in learning more? dobetter.plantemoran.com jects Coordinator Keenan Cov- ington at [email protected] or (313) 446-0417. 20160229-NEWS--0009-NAT-CCI-CD_-- 2/25/2016 11:03 AM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 9 SPECIAL REPORT: FINANCE

2015 sets local M&A records; 2016 looks to be strong, too

By Tom Henderson “A general theme for our clients is, ‘If it’s not bolt- [email protected] Top 5 deals overall ed down, it’s a good time to sell,’ ” he said. Michael DuBay, the group practice leader for Acquirer/Acquiree/Value In fact, he and other local experts in M&A say private equity for the Detroit-based law firm of that, counterintuitive as it might seem, market tur- Honigman Miller Schwartz and Cohn LLP, thought 1) Dow Chemical Co./ moil and concerns about China could make deals things couldn’t get any better in the world of M&A DuPont Co., easier to get done. than they were in 2014. $65.6 billion They expect a trend that started in the fourth And then 2015 got even better. 2) Olin Corp./Blue Cube quarter to continue throughout 2016 — banks Crain’s tallied 138 deals in Michigan last year Spinco Inc., $5 billion worried about national and world economic con- with a minimum deal value of $10 million, for a ditions got more conservative with their commer- 3) Dow Chemical Co./Dow total of $101.6 billion. Both numbers are records cial lending, which brought deal multiples down Corning Corp., $4.8 billion since Crain’s started running its list of big deals from record highs and started to lower seller expec- more than two decades ago 4) Equate Petrochemical Co./MEGlobal BV, tations. “It was clearly an amazing year,” said Rajesh $3.2 billion Lower deal multiples — of EBIDTA (earnings be- Kothari, managing director of Southfield-based 5) XPO Logistics Inc./Con-way Inc., $3.02 billion fore interest, depreciation, taxes and amortization) Cascade Partners LLC, an and to sale price — and lower expectations should All 138 biggest deals, pages 15-18 private investment firm. mean another strong year in 2016. The previous record for deals was 114 in 2014, For a searchable database of the deals, “We’re seeing our pipeline filling up rapidly, be- and the previous dollar record of $80.9 billion was see crainsdetroit.com/bigdeals cause deals are a little cheaper to do,” said DuBay. set in 2009, an anomaly since all but $4.3 billion of “Valuations had got a bit out of control, but that total was tied to bankruptcy or government transactions nationally last year, up from 103 deals there was some pullback in the fourth quarter,” bailouts of the auto industry. the year before. Dollar volume for both years was said Kothari. “There’s been some tempering of en- Of course, one could argue that the dollar vol- about $8 billion. thusiasm, but the market is enthusiastic, nonethe- ume last year was a bit anomalous, too, because it And despite recent market turmoil, concerns less.” involved the whopping $65.6 billion, headline- about China and expected increases in interest “The balloons have come off the ceiling on valu- making deal involving Dow Chemical and DuPont. rates later this year by the Federal Reserve, DuBay ations. They’re coming down and we’ll continue to Honigman set a record, too, advising on 107 thinks 2016 will be another strong year. SEE DEALS, PAGE 10

Health care deals, Page 11 | Food deals, Page 12 | Tech and auto deals, Page 13 138 Biggest Deals of 2015, Pages 15-18 20160229-NEWS--0010-NAT-CCI-CD_-- 2/25/2016 11:03 AM Page 1

10 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016

BIGGEST DEALS OF 2015

can M&A market despite a strength- other record year in 2015, with 25 DEALS 5 years of big deals ening dollar that means it takes transactions, including 19 acquisi- FROM PAGE 9 Year No. of deals Volume more euros to get deals done. tions in 13 states. see them come down,” said Scott “It’s counterintuitive with the In December alone, Huron sold 2015 138 $101.6 billion Eisenberg, managing partner in the dollar coming close to parity with two companies and added three Birmingham-based investment bank- 2014 114 $43.7 billion the euro. You’d think you’d see a new companies to serve as plat- ing firm Amherst Partners LLC. 2013 102 $44.8 billion cooling of interest by Europeans in forms for further acquisitions. “We’ve been telling people, ‘If investing here, but there is a flight to Managing partner Brian 2012 96 $27.5 billion you’re on the fence now, get off it. safety. They have more interest in Demkowicz said the sudden drop in Michael DuBay: Sam Valenti III: You can’t wait.’ I sent an email out 2011 72 $19.3 billion investing in the U.S.,” he said. the availability of bank credit and “Deals are a little “I’m looking at yesterday to a prospect who was declines in corporate earnings A public company cheaper to do.” many prospects.” saying he wanted to wait until operating as a PE firm could make deals easier to do spring to sell. I told him, ‘You might vate equity capital being deployed,” this year. want to go now,’ ” he said. he said. Sam Valenti III, the executive manufacturers as well as carve-outs “You saw deals falling apart in the “Last year was a frothy year,” said Marsh said the strength of the U.S. chairman of Bloomfield Hills-based from larger companies looking to fourth quarter and valuations com- Kevin Prokop, managing partner at economy relative to Europe, coupled Horizon Global Corp. (NYSE: HZN), generate cash and hoped to close ing down,” he said. Detroit-based Rockbridge Growth Eq- with market turmoil in China, has expects lower deal multiples to help on its first acquisition in the third or “It felt to us in October like it did uity LLC. “There was a lot of private made U.S. companies attractive tar- Horizon belatedly close on some fourth quarter. in the fall of 2007. Valuations were at equity money looking to be de- gets for foreign buyers, with Chinese acquisitions this year. But Valenti said a disconnect be- an all-time high, well in excess of ployed. There was bank debt. And companies looking for key technolo- When Horizon was spun off from tween sellers’ expectations and his where they should have been from strategic buyers had a lot of money gies and European companies look- Bloomfield Hills-based TriMas Corp. kept any deals from getting done. an economic point of view. Eco- on their balance sheets. ing for a toehold in what they view as last July, Valenti said the company He said sellers expected high nomic growth had been anemic, at “This year will still be strong, but a safe place to invest. would basically operate as a private prices for much of last year for 1 to 2 percent.” buyers will be more selective. The Munich-based Blue Corporate Fi- equity firm that trades as a public good reasons — interest rates were Demkowicz said more rational market is going to be more binary,” nance was looking for more than a company, with an aggressive acqui- at record lows; slow organic growth pricing will keep Huron active this he said. “Good deals will have no foothold in the U.S. market when it sition plan both here and in China for companies in general meant year. He said the firm has letters of trouble getting done. More ques- and Birmingham-based Quarton and South America. that if they wanted to grow their intent on five deals, two of them to tionable deals will have trouble get- Partners LLC formed a Swiss-based Horizon Global has two business top lines they had to do so through serve as platform companies and ting funded.” holding company in December, units, Cequent Americas and Cequent acquisitions; and banks were eager three to be add-ons for current plat- Kevin Marsh, managing director Quarton International AG, to help Asia Pacific, Europe and Africa, and to lend. forms. at the Birmingham-based Angle Ad- them source deals and share in the the two dominate the towing, trailer But with Fed rates heading up He expects deal flow to be strong visors–Investment Banking LLC, said a investment banking fees involved. and cargo management industries, and banks more conservative, later in the year, thanks to a lag be- decrease in the availability of debt Andre Augier, Quarton’s co- operating under such brand names Valenti expects to finally get some tween seller expectations and mar- will, somewhat counterintuitively, founder and chairman and CEO of as Draw-Tite, Bulldog, Reese, Fulton deals done. “I’m looking at many ket realities. “It can take a couple of drive deal-making. North American operations for the and Hayman Reese. prospects as we speak,” he said. quarters for sellers to adjust,” “Historically, it’s still a very good new holding company, said Blue Valenti and CEO Mark Zeffiro Detroit-based Huron Capital Part- he said. Ⅲ market. With multiples coming Corporate Finance was eager to be said at the time of the IPO that the ners LLC, annually the state’s most Tom Henderson: (313) 446-0337 down, you can expect a surge in pri- more active in the hot North Ameri- company would look to buy small active private equity firm, had an- Twitter: @TomHenderson2

Your deal gets done here

Apple Sauce, Inc. Apple Sauce, Inc.

Sale of 10 Applebee’s restaurants to Sale of 33 Applebee’s restaurants to Doherty Apple South Florida, LLC RMH Franchise Corporation Sale to Aurora Diagnostics, LLC Cottonwood Acquisitions, LLC Sale of stock to Hynes Acquisition of assets of Roadie Sale to CeramTec Holding Company Products, Inc.

Lee Steel Corporation Lee Steel Corporation Acquisition of certain assets of Industrial Maintenance and its affiliates and its affiliates LTS Metrology LLC Hospitality Technical Services that Acquisition of dESCO, LLC Services, Inc. Sale of Wyoming, Michigan facilities Sale of Romulus industrial real estate Acquisition of substantially made DCI an Enhanced GPNS Sale to Technology Service and business to Union Partners I, LLC and facilities to Hilco Industrial and all the assets of Provider to Marriott International Professionals, Inc. pursuant to Bankruptcy Code § 363 Hilco Real Estate LTS Scale Company, LLC

MCM Capital Partners III, L.P. S. G. Morris Tioga Air Heaters, LLC Tioga Air Heaters, LLC Recapitalization with two Offering of Limited $70 million Senior Represented independent private equity firms Partnership Units Guaranteed Notes trustee in the sale to Acquisition of Reliable Acquisition of Mobile Air Applied Industrial Technologies Construction Heaters, Inc.

McDonald Hopkins PLC +BNFT+#PVUSPVT ** 39533 Woodward Avenue, Suite 318 Detroit Managing Member Bloomfield Hills, MI 48304 248.646.5070

mcdonaldhopkins.com Carl J. Grassi $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDIt 8BTIJOHUPO %$ President * McDonald Hopkins Government Strategies LLC is owned by the law firm McDonald Hopkins LLC. McDonald Hopkins Government Strategies is not a law firm and does not provide legal services. 20160229-NEWS--0011-NAT-CCI-CD_-- 2/25/2016 11:04 AM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 11

BIGGEST DEALS OF 2015

Cardinal finds alignment with $1.12B Harvard Drug buy Top 5 health care deals Acquirer/Acquiree/Value After nine years under private eq- “Since the acquisition, we have ings to serve hospital systems and In 2010, Harvard Drug ran afoul 1) Cardinal Health Inc./Harvard Drug U.S. Drug Enforcement Adminis- uity firm ownership, Livonia-based been trending well with the culture other companies. of the Group LLC, $1.12 billion Harvard Drug Group LLC last year and the business and have had The law firm Jones Day advised tration over sale of controlled sub- sold its business to Cardinal tremendous results,” said Cardinal Health on the deal, while stances. The DEA had suspended 2) Diplomat Pharmacy Inc./Biorx Health Inc. in a $1.12 bil- Greiner, adding that the Harvard Drug Group was advised Harvard’s registration to sell Sched- LLC, $315 million lion transaction. two companies are still in by Dechert LLP. Credit Suisse Group ule III, IV and V controlled sub- 3) Henry Ford Health For Dublin, Ohio- the process of integra- AG served as Harvard Drug Group’s stances, including OxyContin. In System/Allegiance Health, based Cardinal, Har- tion operations and financial adviser. 2011, Harvard was fined $8 million $293 million vard was the sixth sharing best practices Cardinal Health is a $103-billion- for the infractions. 4) Ascension Health/Crittenton generic drug company with Harvard. a-year supply business that also Other drug companies were also Hospital Medical Center, $225 million it has purchased since For example, Harvard helps health care clients reduce ordered to improve oversight of dis- 2006. Cardinal also has ac- has helped to expand Car- costs, enhance efficiency and im- tribution of controlled substances 5) Villa Healthcare Management quired Metro Medical Supply Co., dinal’s portfolio of over-the prove quality. Last year, Cardinal to prevent drug diversions, includ- Inc./Bortz Health Care Facilities Inc., DIK Drug Co. and Kinray Inc. in the counter pharmaceutical products opened a distribution warehouse in ing Cardinal Health.Ⅲ $114 million past five years. and specialized packaging offer- Detroit near Henry Ford Hospital. Jay Greene For Harvard, the 49-year-old company is now part of a major health care distributor with a major warehouse in Midtown instead of being owned the past decade by two out-of-state private equity firms. When Companies Turn to Dealmaking, In 2010, Court Square Capital Part- ners of New York acquired Harvard They Turn to Dykema Drug, which had been owned by another private equity firm, Miami- These are but a few of the major deals that the law firm of Dykema helped its clients close in 2015. From middle-market businesses based H.I.G. Capital since 2006. Har- to publicly traded institutions, privately held enterprises to large-scale public financings, clients nationwide look to Dykema for vard began operations as an inde- pendent, family-owned pharmacy sophisticated counsel, top-tier representation and customized solutions. When you consider your next transaction, choose Dykema. in 1967 as Great Lakes Wholesale Drug. In 2014, Harvard Drug had rev- enue of $450 million with 450 em- ployees in two distribution facilities. Cardinal officials declined to pro- vide Harvard sales figures for 2015. Perceptron, Inc. Paqui LLC Johnson Oil Company Michigan State Colleen Greiner, Cardinal Health’s Acquisition of Sale to Amplify Sale of Assets to Building Authority vice president of sales, said Harvard Coord3 Industries s.r.l. and Snack Brands, Inc. F.S. Holdings, Inc. and 2015 Revenue and perfectly aligned with Cardinal’s Revenue Refunding Bonds Next Metrology Software s.r.o. $12,000,000 Circle K Stores Inc. growth strategy in generics. $989,340,000 February 2015 April 2015 June, December 2015 July 2015

Crainsdetroit.com/blogs Southern Minnesota TWEET @Crainsdetroit Research Data Energy Cooperative Auto-Owners FMP SA Management Group Analysis, Inc. Insurance Group Acquisition of Alliant Energy Sale of Buffalo Wild Wings Stock sale to an affiliate assets in Minnesota and various Acquisition of franchises asset sales to its members of Paris-headquartered Strickland Insurance Group $160,000,000 Ipsos, S.A. $120,000,000 August 2015 August 2015 July 2015 July, December 2015

Crittenton Hospital HealthPlus of Michigan, Inc. Michigan Finance Authority Celonova Biosciences, Inc. Medical Center & HealthPlus Partners, Inc. City of Detroit Financial Recovery Sale of interventional Transfer via Member Sale of assets of Medicaid and Income Tax Revenue and radiology business to Substitution to MIChild businesses to Molina Refunding Local Project Bonds Boston Scientific Corporation Ascension Health Healthcare of Michigan, Inc. $245,000,000 $270,000,000 September 2015 September 2015 September 2015 December 2015 Big bucks, HIGH TECH Exceptional service. Dykema delivers.

with Tom Henderson Cooper-Standard Detroit Water and Automotive Inc. Sewerage Department Sale of Cooper-Standard Revenue and Revenue Tom covers banking, Rockford, Inc. Refunding Bonds, Series 2015 finance, technology December 2015 $324,325,000 www.dykema.com and biotechnology. December 2015 California | Illinois | Michigan | Minnesota | Texas | Washington, D.C. © 2016 Dykema Gossett PLLC Attorney Advertising TWEET @TOMHENDERSON2 20160229-NEWS--0012-NAT-CCI-CD_-- 2/25/2016 11:04 AM Page 1

12 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 BIGGEST DEALS OF 2015 Fresh food trend feeds Flatout deal Columbus, Ohio-based Lancaster Colony Corp. had met the founders of Top 5 food deals CONGRATULATIONS Saline-based Flatout Holdings long be- Acquirer/Acquiree/Value fore its purchase of the company nearly a year ago. “We were 1) Campbell Soup Co./Garden familiar with the business Fresh Salsa Co Inc., $231 million and had developed a 2) Lancaster Colony little bit of a relation- Corp./Flatout Holdings Inc., ship through our busi- $92 million ness development ef- 3) Kroger Co./Seven metro Honigman congratulates Crain’s Biggest Deals forts with the owners,” Detroit Hiller’s Markets said Dale Ganobsik, di- locations, $60 million rector of investor relations Zinners anG ȴnalists anG o΍ers our Eest ZisKes and corporate planning. 4) Diversified Restaurant Holdings Lancaster looked at Flatout in the Inc./18 St. Louis-area Buffalo Wild mid-2000s and knew the owners, Wings restaurants, $54 million to all oI tKis \earȇs Konorees Michael and Stacey Marsh, prior to 5) Lipari Foods LLC/Clover private equity firm North Castle Part- Mountain Foods LLC, $16 million ners LLC taking a position in it in 2010, he said. As Crain’s reported at the time, chasing Flatout last March for $92 200+ Greenwich, Conn.-based North Cas- million. tle and Glencoe Capital Michigan LLC Flatout expanded T. Marzetti’s Honigman SroYiGeG counsel on more tKan  corSorate transactions tKat closeG in  acquired a majority interest that year presence in the deli department, he in the maker of flatbread and other said, noting the perimeter of the specialty food items for $53.3 million. store is a growing area for most retail $14 billion When North Castle and Mike and grocers today. The impetus was sim- 7otal Yalue oI tKese  transactions Zas nearl\  Eillion Stacy Marsh put the business up for ilar to that of Campbell Soup Co. in its sale in 2014, their financial adviser, blockbuster deal to buy Ferndale- Chicago-based Lincoln International, based Garden Fresh Salsa Co. Inc. approached Lancaster’s subsidiary, “Fresh food is the more popular T. Marzetti Co., among others about thing right now with consumers. In- purchasing the company. creasing health-consciousness is WWW.HONIGMAN.COM The deal happened fairly quickly, feeding that,” Ganobsik said. Ⅲ Ganobsik said, with Lancaster pur- Sherri Welch

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Medical Technology: Bryan Hughes 248.223.3678 [email protected]

P&M Corporate Finance, LLC (“PMCF”) completed transactions valued at over $2.5 billion in the previous five years across its dedicated industry teams. These successes serve as examples of PMCF’s focus on helping business owners plan and execute winning transactions globally. With 22 professionals in the United States and over 200 professionals in 27 countries through its Corporate Finance International™ group, PMCF combines its experience and relationships to drive optimal results for clients. 20160229-NEWS--0013-NAT-CCI-CD_-- 2/25/2016 11:05 AM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 13 BIGGEST DEALS OF 2015 Rizvi Traverse Remy deal helps BorgWarner drive toward revenue growth BorgWarner Inc. CEO James Verrier along with a provision that Remy not turns focus to made a bold promise in 2013 to seek other bidders, the Indianapolis Top 5 automotive deals double the company’s revenue to Business Journal reported. The boards Acquirer/Acquiree/Value $15 billion by 2020. of the suppliers settled on $29.50 per 1) Bain Capital/TI Automotive, $2.4 billion 3-D with RealD Despite above-market growth, the share, a 44 percent premium over drivetrain component supplier Remy’s share price at that time. 2) Delphi Automotive plc/HellermannTyton Group plc, $1.58 billion needed to make a big play as it man- BorgWarner targeted Remy to build 3) BorgWarner Inc./Remy International Inc., $1.2 billion buy for $537.8M ufactures combustion-engine prod- on the companies’ joint develop- 4) Co./GMAC-SAIC Automotive Finance Co. Ltd., $1 billion ucts in an increasingly electric world. ments, Verrier told Crain’s at the North Timing is everything, as RealD After a three-month courtship, American International Auto Show in 5) Koch Industries Inc./Truck-Lite Co. Ltd., $1 billion found out in November when Birm- BorgWarner announced in July January. Remy gave BorgWarner ac- ingham-based Rizvi Traverse Man- 2015 that it would acquire electric cess to electrification technologies it BorgWarner, which had revenue of tric) is changing the landscape,” Ver- agement LLC agreed to pay $537.8 motors manufacturer Remy Interna- didn’t have in its portfolio and a main- $8.3 billion in 2014, and now has rier told Crain’s. “We’re not relying million, including tional Inc. in a $1.2 billion deal. line to the engineering talent it needed content in electric vehicles such as on vast volume growth. Our growth the assump- Auburn Hills-based BorgWarner to compete in that space, he said. the Chevy Volt. will come from penetration gains.”Ⅲ tion of debt, initially offered $29 share for Remy The result is a bigger and better “The vehicle of the future (elec- Dustin Walsh for the strug- gling 3-D technology company, a deal that worked out to When it's mission critical for your deal — engage about $11 a share. The deal came a year after Beverly and deploy our tactically trained team of M&A legal Hills, Calif.-based RealD rejected an specialists. We secure the desired results for our unsolicited offer of $600 million clients by applying years of practical deal experience from the activist hedge fund - gained out in the field not hiding behind a desk! board Value LP, and nine months after RealD management decided it want- ed to sell the company, after all, and began shopping it around. RealD’s investment banker report- edly reached out to 71 would-be buy-

ers, and 36 signed confidentiality agreements. Despite RealD’s presence in more than 27,000 theaters world- PC Treasures, Inc. wide, only five prospective buyers had SALE OF OWNERSHIP SALE OF ASSETS TO enough follow-up interest to receive a ACQUISITION OF RECAPITALIZATION AND INTEREST TO formal management presentation. MINORITY INVESTMENT BY Of those, Rizvi Traverse had the O2 Investment sole bid in the final round. RealD’s Partners, LLC PineBridge Structured Capital Partners board unanimously approved. November, 2015 According to a filing RealD made November, 2015 October, 2015 with the U.S. Securities and Exchange July, 2015 Commission after the deal was an- nounced, interest by others was cooled by “perceived risks around consumer appetite for 3-D films” and fears that theaters might not renew The Sandbox Group, LLC deals to license RealD technology. Callahan Automotive, Inc. Your Company John Giampetroni, a Rizvi Tra- ACQUIRED THE STOCK OF Logo Here verse co-founder and partner, was ACQUISITION OF named by Crain’s as one of its 10 SALE OF STOCK TO JLM 1926 Holdings, Inc. SALE OF STOCK TO Newsmakers of the Year for 2013. Strategic Buyer Though based in the Midwest, Rizvi Traverse is a powerhouse in digital media and entertainment. A hybrid 2016 February, 2015 February, 2015 of venture capitalist and private eq- March, 2015 uity firm, the company was the largest investor in Twitter before its . It was an early investor in Square, a popular mobile-payment plat- form; the social-media company Areas of M&A Expertise: Snapchat; and SpaceX, the rocket and spacecraft company founded Automotive | Energy | Financial Institutions | Healthcare | Industrial | International | Private Equity | Technology | Venture Capital by Elon Musk. Ⅲ Tom Henderson Our top ranked M&A group offers scalable resources and vast industry expertise to cover every aspect of your M&A transactions from qualifying buyers, IP due diligence and negotiation of deal documents, to post-closing integration. Applying innovative thinking and trusted insight, we Top 5 tech deals deliver deals from the millions to the billions to help make your merger, acquisition or divestiture successful and cost effective – every time. Acquirer/Acquiree/Value 1) Tyler Technologies Inc./New World Systems Corp., $713.9 million 2) Rizvi Traverse Management LLC/RealD Inc., $537.8 million ® 3) ProQuest LLC/Ex Libris, $500 million www.howardandhoward.com | 248.645.1483 4) Dyson James Ltd./Sakti3 Inc., $90 million Ann Arbor, Michigan | Detroit, Michigan | Chicago, Illinois | Peoria, Illinois | Las Vegas, Nevada 5) API Technologies Corp./Aeroflex/Inmet Inc.; Aeroflex/Winschel, $80 million DBpageAD_DBpageAD.qxd 1/21/2016 4:25 PM Page 1

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CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 15 CRAIN'S LIST: LARGEST MERGERS & ACQUISITIONS OF 2015

  Á   Ä  Á Rank ÃÄÄ  Äÿ ÃÄÄ Ä Äÿ Ä  ÄÂÁ  B 1 Dow Chemical Co., Midland DuPont Co., Wilmington, Weil Gotshal; Simpson Evercore Partners; Pending The two chenical conglomerates are expected to merge $65,600.0 Del. Thacher Goldman Sachs as equals pending regulatory approvals. Olin Corp., Clayton, Mo. Blue Cube Spinco Inc., JP Morgan Barclays; Goldman Sachs Oct. 31, Dow sold its chlorine business to Olin for $2 billion in $5,000.0 2 Midland 2015 cash, a debt swap and 50.5 percent of Olin stock worth $2.2 billion. Dow Chemical Co., Midland Dow Corning Corp., Midland Sherman Sterling J.P. Morgan Securities; Pending Dow acquired the remaining 50 percent of the joint $4,800.0 3 KPMG AG; Kirkland & Ellis venture from Corning Inc. Equate Petrochemical Co. KSCC, MEGlobal BV, Dubai, United Latham & Watkins Ernst & Young Dec. 23, Dow sold MEGlobal as part of its strategy to reduce its $3,200.0 4 Kuwait Arab Emirates 2015 stake in several Kuwaiti ventures. XPO Logistics Inc., Greenwich, Con-way Inc., Ann Arbor Wachtell Lipton; Davis White & Case; Citi; Sidley Oct. 30, The Deal makes XPO the second largest less-than- $3,016.1 5 Conn. Polk Austin 2015 truckload shipper in North America. C Bain Capital LLC, Boston TI Automotive Ltd., Auburn Goldman, Sachs & Co.; Weil, Gotshal & Manges June 30, Sold by consortium of hedge funds, including Oaktree $2,400.0 6 Hills UBS Securities LLC LLP 2015 and Duquesne Capital Management. Delphi Automotive plc, Troy HellermannTyton Group plc, Barclays; Linkaters LLP Goldman Sachs; J.P. Dec. 18, HellermannTyton and its 3,800 employees will be part of $1,580.0 7 Crowley, England Morgan 2015 Delphi's electronics division based in Shanghai. BorgWarner Inc., Auburn Hills Remy International Inc., Bank of America Merrill Gibson Dunn; UBS Nov. 10, BorgWarner paid $29.50 per share, more than 40 $1,195.7 8 Pendleton, Ind. Lynch; KeyBanc Capital Securities; Sullivan & 2015 percent premium over Remy's trading price. Markets Cromwell Cardinal Health Inc., Dublin, Harvard Drug Group LLC, Dechert LLP, Jones Day Credit Suisse; Piper July 6, 2015 Sold by Court Square Capital Partners LP $1,115.0 9 Ohio Livonia General Motors Co., Detroit GMAC-SAIC Automotive Sullivan Cromwell Jan. 5, 2015 Had been owned by Inc., Detroit $1,000.0 10 Finance Co. Ltd., Pudong New Area, China Koch Industries Inc., Wichita, Truck-Lite Co. Ltd., Falconer, Jones Day; Latham & Robert W. Baird; Wells Dec. 31, Koch acquired the automotive aftermarket lighting $1,000.0 10 Kan. N.Y. Watkins Fargo 2015 manufacturer from Penske Corp. Mahle GmbH, Stuttgart, Thermal unit of Delphi Citigroup Capital Markets Barclays July 1, 2015 The Delphi unit reported $1.2 billion in revenue with $727.0 12 Germany Automotive plc, Troy Inc. more than 7,600 employees. Tyler Technologies Inc., Plano, New World Systems Corp., Wells Fargo Honigman Miller Nov. 16, Tyler acquired New World Systems for $360 million in $713.9 13 Texas Troy Schwartz and Cohn 2015 cash and approximately 2.1 million shares. The Gores Group U.S. Farathane Holdings Weil Gotshal Angle Advisors Jan. 31, U.S. Farathane issued $470 million in debt to finance its $700.0 14 Corp., Auburn Hills 2015 own acquisition to Gores. Deal value from Moody's. Aviation Industry Corp. of China, Henniges Automotive Miller, Canfield, Paddock Morgan Stanley; UBS Sept. 9, Sold by Littlejohn & Co. LLC. $600.0 15 Beijing Holdings Inc., Auburn Hills and Stone PLC 2015 Rizvi Traverse Management LLC, RealD Inc., Beverly Hills, Latham & Watkins Moelis & Co.; Cooley LLP; Pending RealD Inc. developed RealD 3-D technology, used for $537.8 16 Birmingham Calif. Freshfields; Wachtell projecting films using circularly polarized light. Lipton Mann Hummel Holding GmbH, Automotive filters unit, Davies Ward/Manatt Robert W. Baird; Hogan Pending German supplier Mann Hummel also assumed the $513.1 17 Ludwigsburg, Germany Affinia Group Holdings, Ann Phelps Lovells; McCarthy Tetraul unit's debt burden as part of the deal. Arbor Proquest LLC, Ann Arbor Ex Libris, Jerusalem, Israel Fried, Frank, Harris, Jefferies LLC Oct. 6, Provider of cloud-based and other IT services for $500.0 18 Shriver & Jacobson LLP 2015 libraries had been owned by Golden Gate Capital. Huntington Bancshares Inc., Macquarie Equipment Guggenheim Securities; KPMG; Mayer Brown April 1, Had been owned by Australian company. $457.8 19 Columbus, Ohio Finance Inc., Bloomfield Wachtell Lipton Rose & 2015 Hills Katz Fosun International Ltd Meadowbrook Insurance DLA Piper LLP, Paul Sidley Austin LLP, Brian July 10, Fosun paid $8.65 per share for Meadowbrook, which at $433.0 20 Group Inc. Chen Fahrney; Willis Capital 2015 the time of the deal was more than 20 percent over its Markets, Matt Morris trading price. THK Co Ltd, Tokyo, Japan ZF TRW, Livonia, linkage and Fasken Martineau, BNP Paribas; Honigman Sept. 1, TRW Holdings sold the unit, with $550 million in $400.0 21 suspension business in Hengeler Mueller, Mori Miller Schwartz and Cohn 2015 revenue, to THK ahead of its own acquisition by ZF Europe, NA Hamada & Matsumoto Friedrichshafen AG. Plastipak Holdings Inc., APPE packaging division of Forest Partners, Estrada & July 7, 2015 APPE is Wales operation of liquidated La Seda $386.2 22 La Seda de Barcelona Group Associaados Diplomat Pharmacy Inc., Flint Biorx LLC, Cincinnati Bass Berry & Sim Choate Hall Stewart April 1, Deal includes $210 million in cash and $105 million in $315.0 23 2015 Diplomat common stock. D Gryphon Investors, San Jensen Hughes Inc., Arbutus, Kirkland & Ellis Honigman Miller Dec. 31, Fire protection and engineering company had been a $300.0+ 24 Francisco Md. Schwartz and Cohn; 2015 portfolio company of Huron Capital, Detroit. Value is Crowe Horwath greater than $300 million. ITT Corp., White Plains, N.Y. Wolverine Automotive Hughes Hubbard & Reed UBS; Foley & Lardner Oct. 5, Had been owned by Wynnchurch Capital, Rosemont, Ill. $300.0 25 Holdings Inc., Dearborn 2015 D Henry Ford Health System, Allegiance Health, Jackson Pending Allegiance is a 480-bed community-owned health $293.0 26 Detroit system, including Foote Hospital in Jackson. Campbell Soup Co., Camden, N.J. Garden Fresh Salsa Co Inc., Morgan Lewis UHY; Maddin Hauser June 29, The acquisition gave Campbell Fresh division entree to $231.0 27 Ferndale 2015 the deli section of grocery stores. D Ascension Health, Warren Crittenton Hospital Medical Hall, Render, Killian, Dykema Gossett PLLC Oct. 1, $225.0 28 (Ascension Health, St. Louis) Center, Rochester Hills Health & Lyman 2015 Strength Capital Partners, Arch Global Precision, Jaffe Raitt Heuer & Weiss Aug. 7, Recapitalization of supplier of machined aluminum, $171.6 29 Birmingham Livonia PC 2015 with previous investors, including Strength, getting a return. D Charter NEX Films, Milton, Wis. Optimum Plastics, Bloomer, Hogan Lovells Honigman Miller Dec. 31, Blown-film manufacturer had been a portfolio company $150.0+ 30 Wis. Schwartz and Cohn 2015 of Huron Capital. Value is greater than $150 million. Thor Industries, Elkhart, Ind. Postle Aluminum Co., Jaffe Raitt Heuer & Weiss May 1, Strength Capital of Birmingham sold its stake in Postle. $145.9 31 Elkhart, Ind. PC 2015 Impellam Group plc, UK Bartech Holding Corp., Nelson Mullins Sverica Capital Dec. 9, Deal was combination of cash and debt. $120.0 Bartech Group Inc. Management LLC; 2015 32 SunTrust Robinson Humphrey; Foley & Lardner LLP D Robert Bosch North America Climatec LLC, Phoenix, Ariz. Dorsey & Whitney William Blair; Kirkland & Jan. 15, Climatec, formerly owned by Pegasus Capital Advisors $120.0 32 Corp., Farmington Hills Ellis 2015 LP, generated revenue of $190 million in 2014.

Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2015 transactions, only those valued at $10 million or more. B The total deal value represents half the value of both companies to show one company is effectively absorbing the other. C Bloomberg estimate. D Crain's estimate. CONTINUED ON NEXT PAGE LIST RESEARCHED BY CRAIN'S STAFF 20160229-NEWS--0016-NAT-CCI-CD_-- 2/25/2016 2:19 PM Page 1

16 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 CRAIN'S LIST: LARGEST MERGERS & ACQUISITIONS OF 2015

FROM PREVIOUS PAGE   Á   Ä  Á Rank ÃÄÄ  Äÿ ÃÄÄ Ä Äÿ Ä  ÄÂÁ  Mueller Industries Inc., Tecumseh Products Co., Ann Willkie Farr Citigroup; Honigman Sept. 22, The deal included more than $93 million cash and $119.6 34 Memphis, Tenn.; Atlas Holdings Arbor Miller; J.H. Cohn 2015 assumed debt. LLC, Greenwich, Conn. B Villa Healthcare Management Bortz Health Care Facilities July 1, 2015 Deal value is estimated based on comparable deals. $114.0 35 Inc., Skokie, Ill. Inc., Warren Hexpool AB, Sweden Rhetech Inc., Whitmore Lake Honigman Miller Jan. 16, Rhetech, which manufacturers resins and additives for $112.0 36 Schwartz and Cohn 2015 thermoplastics, had roughly $117 million in 2013 revenue. B Dwyer Group Inc, Waco, Texas Service Brands International Jones Day June 30, $110.0 37 Inc., Ann Arbor 2015 Delphi Automotive plc, Troy Control-Tec LLC, Allen Park KPMG Corporate Dec. 31, Control-Tec captures vehicle data and analytics to $105.0 38 Finance; Greenwich 2015 support product development. Capital Group PineBridge Structured Capital Proper Group International McGladrey LLP UHY Corporate Finance; Oct. 15, The deal includes a recapitalization and a minority $102.0 39 Partners, New York City Inc., Warren Howard & Howard PLLC 2015 interest sale to the private equity firm. B Mel Morris, English entrepreneur Derby County Football Club Geldards LLP Jaffe Raitt Heuer & Weiss Sept. 3, The English soccer club was sold by a group of investors $100.0 40 Ltd., Derby, England PC; Flint Bishop LLP; 2015 led by Andy Appleby, owner of Rochester-based General Smith Cooper Ltd. Sports & Entertainment LLC. Three different buyers Affinia Automotiva Ltda, BR Partners; Barbosa Oct. 1, Pellegrino acquired shock absorber factory in Sao Paulo. $92.3 Osasco, Sao Paulo, Brazil; Mussnich 2015 Distributors — Auto Norte, Cobra and Distribuidora 41 unit of Affinia Group Automotiva — acquired the industrial business. Holdings, Ann Arbor Lancaster Colony Corp., Flatout Holdings Inc., Saline Lincoln International Lincoln International LLC Mar. 13, Lancaster's wholly-owned subsidiary, T. Marzetti Co., $92.0 42 Columbus, Ohio LLC 2015 acquired Flatout from North Castle Partners LLC. Dyson James Ltd., Malmesbury, Sakti3 Inc., Ann Arbor Oct. 19, Acquisition of lithium-ion battery company follows an $90.0 43 England 2015 investment of $20 million led by Dyson B Watermill Group LLC, Lexington, Quality Metalcraft Inc., Goodwin Procter Quarton International; June 30, $90.0 43 Mass. Livonia Clarkson Law pllc 2015 Meredith Corp., Des Moines, Shape Magazine, Troy Feb. 28, Had been owned by New York-based American Media $87.4 45 Iowa 2015 Inc. Deal included Shape, Natural Health, and Fit Pregnancy magazines and their related digital assets. API Technologies Corp., Orlando, Aeroflex/Inmet Inc., Ann Wilson Sonsini June 8, Had been owned by Cobham PLC, Wimborne, England $80.0 46 Fla. Arbor; Aeroflex/Weinschel 2015 Inc., Frederick, Md. Northeast Industries Group Co. Reception systems unit of None Angle Advisors July 31, The Delphi unit manufactures automotive antennas and $70.0 47 Ltd., China Delphi Automotive plc, Troy 2015 in-vehicle TV tuners. B Kroger Co., Cincinnati Seven metro Detroit Hiller's July 1, 2015 Kroger gained market share through the deal and entrée $60.0 48 Markets locations to specialty and ethnic food products. U.S. Farathane Holdings Corp., Tepso Plastics Mex SA de CV, Pending U.S. Farathane sought an additional $110 million in debt $60.0 48 Auburn Hills Apodaca, Mexico to suppot the transaction. Centene Corp., St. Louis Fidelis SecureCare of May 31, Sold by Concerto Healthcare Inc., Detroit. Centene $57.0 50 Michigan Inc., Livonia 2015 acquired the 32 percent stake it didn't already own. B Heartland Payment Systems Inc., Payroll 1 Inc., Birmingham Preston Todd Advisors March 2, Payroll1 provides payroll and tax-filing services for $57.0 50 Princeton, N.J. 2015 businesses. Magellan Health Inc., Avon, 4D Pharmacy Management Weil Gotshal April 1, The deal also includes consideration for $30 million $55.0 52 Conn. Systems Inc., Troy 2015 more based on future milestones. Diversified Restaurant Holdings 18 St. Louis-area Buffalo July 1, 2015 Sold by A Sure Wing LLC, Creve Coeur, Mo. $54.0 53 Inc., Southfield Wild Wings restaurants Dykema Gossett PLLC, Detroit Cox Smith Matthews Inc., May 1, 118 Cox Smith attorneys in San Antonio, McAllen and El $53.0 54 San Antonio, Tex. 2015 Paso, Texas, as well as in Austin and Dallas, where Dykema already has an office, join the Detroit firm. B Huron Capital Partners, Detroit Earnest Brothers Logistics, Dykema Gossett; Plante Vedder Price Dec. 1, Logistics company was bought to form a platform for $50.0+ 55 Chicago Moran 2015 future acquisitions. Value is greater than $50 million. B ProQuest LLC, Ann Arbor Coutts Information Services Fried, Frank, Harris, June 1, Company with broad base of print and digital books and $50.0+ 55 Ltd., Blashford, England Shriver & Jacobson LLP 2015 materials was bought from Tennessee-based Ingram Content Group. Ascension Health, St. Louis U.S. Health & Life Insurance Dykema Gossett PPLC June 30, U.S. Health operates in 20 states, including Michigan, $50.0 57 Co. Inc., Birmingham 2015 Ohio, Illinois and Indiana. Goldman Sachs Group Inc., New LLamasoft Inc., Ann Arbor Fenwick & West DLA Piper Sept. 29, Investment was largest VC round in an IT company in $50.0 57 York City 2015 state history. Llamasoft makes supply-chain software Shanghai Shenda Co Ltd., NYX Inc., Livonia Pending Chinese company plans to acquire a 35 percent stake. $48.7 59 Shanghai, China B TransForce Inc., St. Laurent, Hazen Final Mile, Taylor May 22, $41.0 60 Quebec 2015 B BGC Partners Inc., New York City Computerized Facility May 30, CFI rolled into BGC's Newmark Grubb Knight Frank $40.0 61 Integration LLC, Southfield 2015 service portfolio. Various investmemt firms Delphinus Medical Sept. 10, Follow-on investment. Largest in state history for a $39.5 Technologies Inc., Plymouth 2015 medical device company. Company, spun off from 62 Karmanos Cancer Institute, uses ultrasound to detect breast cancer. CNL Healthcare Properties Inc., Novi Orthopaedic Center, Feb. 26, Sold by St. John Providence Health System, Warren, and $30.5 63 Orlando, Fla. Novi 2015 other minority owners. Opus Group AB, Molndal, Drew Technologies Inc., Ann Vinge Advokatfirman; March 23, $25 million in cash and $5 million to the sellers. $30.0 64 Sweden Arbor Ellis and Winters LLP 2015 Various investment firms Duo Security Inc., Ann Arbor Gunderson Dettmer April 14, Duo makes two-factor security for IT networks, has $30.0 2015 6,000 customers in 80 countries, including Facebook, 64 Twitter, NASA and, after its debacle with hackers last year, Sony. Truck Hero Inc., Ann Arbor N-Fab Inc., Houston Dec. 1, N-Fab manufactures nerf bars, pre-runners and other $28.0 66 2015 off-road vehicle accessories. B Various investment firms Summit Sports Inc., Forbes MA Group June 30, The investment firms acquired a majority share. $27.0 67 Bloomfield Hills 2015 United States Steel Corp., Double Steel Coating June 1, U.S. Steel acquired outstanding stake in joint venture $25.2 Pittsburgh Co., Dearborn 2015 held by competitor AK Steel. AK Steel took over the stake 68 after acquiring the Dearborn operations from Severstal in 2013. Masco Corp., Taylor Endless Pools Inc., Aston, Pa. Paul Hastings Feb. 27, Endless Pools becomes part of Watkins Manufacturing $25.0 69 2015 Corp., a Masco subsidiary in California.

B Crain's estimate. CONTINUED ON NEXT PAGE 20160229-NEWS--0017-NAT-CCI-CD_-- 2/25/2016 4:42 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 17 CRAIN'S LIST: LARGEST MERGERS & ACQUISITIONS OF 2015

FROM PREVIOUS PAGE   Á   Ä  Á Rank ÃÄÄ  Äÿ ÃÄÄ Ä Äÿ Ä  ÄÂÁ  Wellington Management Group Sharecare Inc., Atlanta April 8, Boston-based Wellington invested $20 million, and $25.0 LLP, Trinity Health Corp. 2015 Livonia-based Trinity $5 million, in wellness and health- 69 assesment company founded by WebMD founder Jeff Arnold and TV personality Dr. Mehmet Oz. Civitas Solutions Inc., Boston Cassell & Associates LLC, Jan. 13, $24.3 71 Novi 2015 NHN Investment Corp., Intel Avegant Corp., Ann Arbor Aug. 21, Avegant, which makes virtual reality goggles, moved to $24.0 72 Capital Corp. (Fund: Intel Capital 2015 Redwood City, Calif., after this deal. Connected Car Fund) Union Partners I LLC, Oak Wyoming, Mich., operations Stahl, Cowen, Crowley, Huron Consulting; Sept. 18, Assets acquired out of Chapter 11 bankruptcy in an $23.6 73 Brook, Ill. of Lee Steel, Novi Addis McDonald Hopkins PLC 2015 auction. M Holland Co., Northbrook, Ill. Polymer Z LLC, Birmingham Pending Deal value is estimated based on comparable deals and $23.0 74 Polymer Z's 2014 revenue of roughly $29 million. Rentokil Initial PLC, West Sussex, Pest control assets of Eradico Internal Tullius Co. Inc., Foley & Mar. 3, Eradico Services retains a lawn care and seasonal $23.0 74 England Services Inc., Novi Mansfield PLLP 2015 Christmas decorations business after sale. Shareholders, United Truckload Universal Truckload Services July 8, 2015 $22.5 76 Services Inc., Warren Inc., Warren B Crowne Group LLC, Cleveland Vari-Form, Troy Jones Day Lincoln International LLC July 15, Had been owned by Sun Capital Partners Inc. $22.0 77 2015 B Ipsos, Paris, France Research Data Analysis Inc., DeSilva & Phillips; July 15, Research data generated revenue of about $25 million in $22.0 77 Bloomfield Hills Dykema; Gordon Advisors 2015 2014 and employs 180 in 60 countries. Power Solutions International Powertrain Integration LLC, June 30, The purchase price consists of $21.6 million in cash and $21.6 79 Inc., Wood Dale, Ill. Madison Heights 2015 contingent consideration of $8 million more in cash. Luna Innovations Inc., Roanoke, Advanced Photonix Inc., Ann Cooley LLP May 11, Advanced Photonix was a pubicly traded maker of $21.0 80 Va. Arbor 2015 optoelectronic sensors, devices, and test and measurement instrumentation. Oxford Instruments PLC, Tubney Medical Imaging Resources May 1, Deal involves $10.4 million in cash and a $10.1 million $20.5 81 Woods, London Inc., Ann Arbor 2015 earn-out payment in 2016. AGM Automotive Inc., Troy Durmont Donnelly Penman & April 10, Austria-based Cross Industries AG sold Durmont to $20.3 82 Teppichbodenfabrik GmbH, Partners 2015 AGM and its investment partner Dallas-based Trive Austria Capital. B Huron Capital Partners, Detroit Drake Automotive Group, Honigman, BDO Sheppard, Mullin, Richter Dec. 1, Aftermarket parts company for muscle car and Mustang $20.0+ 83 Henderson, Nev. & Hampton 2015 enthusiasts was bought as platform company to grow through acquisitions. B Huron Capital Partners, Detroit Erin Engineering and Honigman Miller Reed Smith May 1, Merged acquired company into portfolio company $20.0+ 83 Research Inc., Walnut Creek, Schwartz and Cohn; 2015 Jensen Hughes, Baltimore, Md. Calif. Plante Moran B LLamasoft Inc., Ann Arbor Barloworld, South Africa's Nov. 3, Deal adds 100 employees for Llamasoft with purchase of $20.0+ 83 supply chain software 2015 South African business unit. B LLamasoft Inc., Ann Arbor LogicTools supply chain April 1, Deal adds 120 employees and such customers as Apple, $20.0+ 83 applications business of IBM 2015 Microsoft, Rubbermaid and Shell. Corp. Investors, including James Sakti3 Inc., Ann Arbor Mar. 15, VC deal to ramp up production of maker of solid-state $20.0 Dyson, GM Ventures, Beringea 2015 batteries for household applicances. 87 LLC, Itochu Ventures, Khosla Ventures Beringea LLC, Farmington Hills D3O Labs Ltd., England PricewaterhouseCoopers April 7, Beringea invested $13 million to lead round in company $19.0 88 2015 that makes shock-absorbing clothing materials. Incipio Technologies Inc., Irvine, ClamCase LLC, Grosse Wunderlich Bodman PLC, UHY June 5, Maker of keyboards that attach to iPad, and other $17.0 89 Calif. Pointe Farms Advisors LLP, Black Steel 2015 electronic devices. Partners B Pure HealthyBack Inc., Orlando, Dynamic Rehabilitation, Marco Eadie; Polsinelli Warner Norcross & Judd March 11, $17.0 89 Fla. Troy Roetzel & Andress LLP 2015 Level One Bancorp Inc. Bank of Michigan, Nelson, Mullins, Riley & Howard & Howard Pending Bank of Michigan had one branch and $110 million in $16.5 91 Farmington Hills Scarborough; FinPro assets. This gives Level One about $1 billion in assets. Capital Advisors Inc. Lipari Foods LLC, Warren Clover Mountain Foods LLC Jan. 20, The deal expanded Lipari’s service area by bringing it $16.0 92 2015 Clover Mountain's six-state distribution area. Park Lawn Corp., Toronto Midwest Memorial Group Pending Midwest Memorial owns and manages 28 cemeteries in $16.0 92 LLC, Beverly Hills Michigan. Hilco Global, Northbrook, Ill. Romulus operations of Lee Pepper Hamilton Huron Consulting; Sept. 18, Assets acquired out of Chapter 11 bankruptcy in an $15.5 94 Steel, Novi McDonald Hopkins PLC 2015 auction. B Penske Corp., Detroit Transfreight North America, Debevoise & Plimpton; May 8, Had been owned by Mitsui & Co. Ltd. $15.0 95 Erlanger, Ky. Gowling Lafleur 2015 Henderson LLP Meritor Inc., Troy Morganton, N.C., assets of July 10, Meritor paid Sypris $14.5 million in cash, some $14.5 96 Sypris Solutions, Louisville, 2015 equipment, assets and intellectual property, a five-year Ky. lease of the property, inventories and accounts receivable, certain accounts payable and liabilities. Perceptron Inc., Plymouth Coord 3 Industries Srl, Dykema Gossett PLLC Gianni, Origoni, Grippo, Feb. 27, The deal for the Turin, Italy-based coordinate $13.1 97 Bruzolo, Italy Cappelli & Partners 2015 measurement machine maker involves cash and assumption of debt. Saga Communications Inc., WLVQ-FM, Columbus, Ohio Bergner & Co. Pending Had been owned by Wilks Broadcast Group LLC, $13.0 98 Grosse Pointe Farms Alpharetta, Ga. Dandong Xintai Electric Co Ltd., Coherix Inc., Ann Arbor Sept. 10, Deal sets up joint venture in China for 3-D machine $12.0 99 Dangdong City, China 2015 vision products. B HCI Equity Partners LLC, Tribar Manufacturing LLC, Greenberg Traurig Finnea Group March 31, $12.0 99 Washington, D.C. Howell 2015 B Mojix Inc., Los Angeles Tierconnect Inc., Plymouth June 4, Deal included Tierconnect subsidiary CodeRed, also $12.0 99 2015 based in Plymouth. Ntvb Media Inc., Troy TV Guide Magazine, New Desilva & Philps Oct. 7, Had been owned by OpenGate Capital LLC, Los Angeles $12.0 99 York City 2015 Unique Fabricating Inc., Auburn Great Lakes Foam Sept. 1, The purchase of the supplier of molded polyurethane $12.0 99 Hills Technologies Inc., Concord, 2015 components was funded using Unique’s $19.5 million Mich. revolving line of credit. Vast LLC, Auburn Hills Minda Valeo Security Accelerator Group LLC April 30, Vast, a joint venture between several companies $12.0 99 Systems Pvt. Ltd., India 2015 including Grand Rapids-based ADAC Plastics Inc., acquired a 50 percent stake.

B Crain's estimate. CONTINUED ON NEXT PAGE 20160229-NEWS--0018-NAT-CCI-CD_-- 2/25/2016 2:20 PM Page 1

18 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 CRAIN'S LIST: LARGEST MERGERS & ACQUISITIONS OF 2015

FROM PREVIOUS PAGE   Á   Ä  Á Rank ÃÄÄ  Äÿ ÃÄÄ Ä Äÿ Ä  ÄÂÁ  BlackEagle Partners LLC, Temperform Corp., Novi Honigman Miller Bodman PLC; Jan. 1, 2015 Future acquisitions will be rolled into Temperform. $11.7 105 Bloomfield Hills Schwartz and Cohn Montgomery, Wiethorn & Burke PC B Tooling Technology Holdings Majestic Industries Inc., May 22, $11.0 106 LLC, Fort Laramie, Ohio Macomb Township 2015 B 02 Investment Partners LLC, National Technnologies Inc., Honigman Miller Ice Miller LLP Sept. 30, Value is greater than $10 million. $10.0+ 107 Bloomfield Hills Oak Creek, Wis. Schwartz and Cohn LLP 2015 B 123.net Inc., Southfield T2 Communications, May 4, T2, which operates fiber networks in Grand Rapids area, $10.0+ 107 Holland, Mich. 2015 was a division of Texas-based CornerWorld Corp. Bankrate Inc., Palm Beach, Fla. Quizzle LLC, Detroit April 1, Company, launched in 2008 as part of Quicken Loans to $10.0+ 107 2015 provide free credit monitoring and identity protection, will remain in Detroit. B Clearlake Capital Group LP, CNI Enterprises Inc., DLA Piper LLP Finnea Group June 15, CNI now operates under Clearlakes Futuris Global $10.0+ 107 Santa Monica, Calif. Madison Heights 2015 Holdings automotive unit. B Confidential buyer Marriott Auburn Hills March 10, Sold by Bethesda, Md.-based RLJ Lodging Trust. $10.0+ 107 Pontiac Centerpoint 2015 B Excelsior Capital, Newport Artissimo Designs, El Bradley Arant Boult Honigman Miller May 1, Wall decor manufacturer that was sold had been a $10.0+ 107 Beach, Calif. Segundo, Calif. Cummings Schwartz and Cohn 2015 porfolio compan of Huron Capital Partners, Detroit. B HCI Equity Partners LLC, Commercial Steel Treating Finnea Group; Greenberg July 25, HCI acquired a minoity stake in the steel firm. $10.0+ 107 Washington, D.C. Corp., Madison Heights Traurig LLP 2015 B Huron Capital Partners, Detroit Nexus Technical Services, Honigman Miller Culhane Meadows June 30, Fire protection engineering and consulting company $10.0+ 107 Oakbrook Terrace, Ill. Schwartz and Cohn; 2015 bought for Jensen Hughes portfolio company. Plante Moran B Huron Capital Partners, Detroit Valentus Specialty Perkins Cole, Crowe Barrus Dec. 31, Reactive chemical coatings company was bought to $10.0+ 107 Chemicals, N. Brunswick, Horwath 2015 form a platform company for further acquisitions. N.J. B Huron Capital Partners, Detroit Greater Kalamazoo Auto Honigman Miller Kreis, Enderle, Hudgins & May 1, Company was acquired by platform company Xlerate $10.0+ 107 Auction, Schoolcraft Schwartz and Cohn; Borsos 2015 Group, Indianapolis. Crowe Horwath B Huron Capital Partners, Detroit Sky Technologies, New York Honigman Miller McCarter & English March 1, Energy mangement and building automation company $10.0+ 107 Schwartz and Cohn; 2015 bought as add-on for Albiero Energy portfolio company. Plante Moran B Kalitta Charters LLC, Ypsilanti AirNet Systems Inc., Aug. 5, Had been owned by HIG Capital LLC, Miami. $10.0+ 107 Columbus, Ohio 2015 B Main Street Capital Holdings I-Deal Optics Holdings Inc., Sept. 11, Sold by Hadley Capital LLC. $10.0+ 107 LLC, Pittsburgh, Pa. Troy 2015 B ManagedWay Co., Southfield Waveform Technology LLC, UHY Advisors May 19, Deal was combination of stock, cash and warrants. $10.0+ 107 Troy 2015 Mark Davis and Franke Torre, PuroSystems Inc.; Tamarac, Koro Law, Birmingham; internal Sept. 28, Davis and Torre acquired a majority share in $10.0+ 107 owners of Troy-based Signal Fla. and UHY Advisors 2015 PuroSystems; deal value estimated at over $10 million Restoration Services. by industry sources. B Meadowbrook Insurance Group Mackinaw Administrators Bodman LLP Dickinson Wright LLP Aug. 10, Mackinaw operates as an independent subsidiary of $10.0+ 107 Inc., Southfield LLC, Brighton 2015 Meadowbrook. B MiraMed Global Services LLC, Plexus Management Group Deloitte Financial Jun. 5, $10.0+ Jackson Inc., Westwood, Mass. Services; Honigman 2015 107 Miller Schwartz and Cohn B NSF International, Ann Arbor Institut Dr. Erdmann GmbH, Cascade Partners McCormick & Friman LLP Erdmann laboratory specializes in analytical testing for $10.0+ 107 Germany the food, water, wastewater, dietary supplement and pharmaceuticals. B NSF International, Ann Arbor Avarent LLC, Libertyville, Ill. Cascade Partners Fandrich Rechtsanwälte Sept. 2, The acquisition was made through NSF International’s $10.0+ 107 2015 global health sciences division. B Nuspire Corp., Commerce Security Confidence Corp., Bodman PLC; BDO April 7, Nuspire bought 16-person firm specializing in network $10.0+ 107 Township Cincinnati 2015 security for heal care, IT, energy and . B PennEngineering & Link Tool & Manufacturing MMWR LLC Cascade Partners $10.0+ 107 Manufacturing, Danboro, Pa. Co., Westland B Penske Automotive Group Inc., Freightliner of Knoxville and Internal Feb. 1, Penske estimates the acquisition to generate about $200 $10.0+ 107 Bloomfield Hills Freightliner of Chattanooga 2015 million in annualized revenue. dealerships B Penske Automotive Group Inc., Dealerships Audi Eatontown, Nov. 17, Purchased from Schneider Nelson Auto Group. The $10.0+ Bloomfield Hills Porsche Monmouth, Jaguar 2015 franchises are expected annually to sell approximately 107 Monmouth and Land 2,400 new and used vehicles and generate about $175 Rover Monmouth, million in revenue. Monmouth County, N.J. B Raymond James, Sarasota. Fla. The Producers Choice LLC, May 29, Public company will retain all 60 employees of $10.0+ 107 Troy 2015 insurance and annuity marketing firm. Rock Holdings Inc., Bingham 20 percent stake in Rock Honigman Miller Feb. 26, Deal valued at over $10 million, according to Rock $10.0+ Farms Ohio Caesars LLC, holding Schwartz and Cohn LLP 2015 Holdings Inc. Sold by Caesars Entertainment Corp. 107 company for Ohio casinos and other assets B Strength Capital Partners, Street Smart Rental Inc., Honigman Miller July 31, $10.0+ 107 Birmingham, and other investors Lino Lakes, Minn. Schwartz and Cohn 2015 B U.S. LBM Holdings Inc., Green Rosen Materials LLC, Honigman Miller Inhouse April 17, $10.0+ 107 Bay, Wis.; BlackEagle Partners Sunrise, Fla. Schwartz and Cohn LLP 2015 LLC, Bloomfield Hills B U.S. LBM Holdings Inc., Green Parkers Building Supply, Honigman Miller Womble Carlyle Dec. 15, $10.0+ 107 Bay, Wis.; BlackEagle Partners Port Arthur, Texas Schwartz and Cohn LLP Sandridge & Rice LLP 2015 LLC, Bloomfield Hills B Ube Industries Ltd., Ube, Japan Advanced Electrolyte Jan. 16, Ube bought majority stake in company from Dow $10.0+ Technologies LLC, Troy 2015 Chemical Co. to advance manufacturing of rechargeable 107 lithium-ioin batteries. Company had been a joint venture with Dow. Compuware Corp., Detroit ISPW Bechmark Dec. 31, Company provides source-code management and $10.0 136 Technologies Ltd., Calgary, 2015 automation for computer mainframes. Alberta Draper Triangle Ventures LP, Pixel Velocity Inc., Ann Arbor Daroth Capital Feb. 17, Company is in hot internet-of-things space, making $10.0 136 Pittsburgh, Pa. 2015 sensors to monitor pipelines, factory work floors. B Valassis Communications Inc., Spencer Media Inc., Nov. 5, Had been owned by Tegna Inc., McLean, Va. $10.0 136 Livonia Lancaster, Pa. 2015

B Crain's estimate. 20160229-NEWS--0019-NAT-CCI-CD_-- 2/25/2016 2:21 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 19

NEW PRODUCTS NEW SERVICES Duo Security Inc., Ann Arbor, a Danlaw Inc., Novi, a telematics and DEALS & Terumo Cardiovascular Systems Corp., Pinkerton Consulting & Investiga- cloud-based access security engineering services provider, said Ann Arbor, added Capiox FX Ad- tions Inc., Ann Arbor, a global provider, announced that its Trust- its Mx-Suite Test Automation Plat- vance Oxygenator to the Capiox risk management agency, has ed Access platform now enables or- form now supports Autosar 4.2.x DETAILS Oxygenator portfolio. It replaces begun offering Pinkerton In- ganizations to prevent data breach- standard (also 3.2, 4.0, 4.1). (248) the FX15 and FX25 line of oxy- sights Intelligence Brief, a daily es by mitigating out-of-date and 476-5571 Web: danlawinc.com. CONTRACTS genators manufactured in Elkton, risk assessment report. The free unsecured employee devices — Aqaba Technologies Inc., Sterling Md. Enhancements include im- service is for business leaders PCs, Macs, tablets, smartphones — STARTUPS Heights, an internet marketing proved flow dynamics with an in- interested in staying informed that access their networks and let GreenSpace Café, a plant-based agency, has been retained by the Big creased blood flow rate and a of potential security threats. them see which operating systems, restaurant and craft cocktail bar, Bad Rack Co., Marysville, a manufac- lower minimum operating level. Telephone: (800) 724-1616. browsers, Flash and Java editions has opened at 215 W. Nine Mile turer of off-course training equip- (734) 663 4145. Website: Website: pinkerton.com/ are most at risk of causing a data Road, Ferndale. Phone: (248) 206- ment, to develop an e-commerce terumo-cvgroup.com. free-report-signup breach. Website: duo.com. 7510. Website: greenspacecafe.com. solution focusing on brand devel- opment, search engine optimiza- tion and social media marketing. Websites: aqabatech.com. bigbadrack.com. Intellectual Property | Litigation | Technology Michigan Department of Transporta- tion, Lansing, has renamed G2 Con- sulting Group, Troy, a geotechnical environmental and construction materials services firm, as part of its Transactional pre-approved engineering team through an “as-needed” services experience on par contract for Wayne, Oakland and with the major Silicon Macomb county projects. Website: g2consultinggroup.com. Valley law firms. – BRAD KANCIGOR,KANCIGOR, ASSOCIATEASSOCIATE GC Alliance Mobile Health, Troy, has Synopsys,Synopsys, IncInc signed an agreement with Royal Oak Township to provide 911 ambulance service. Telephone: (248) 457-0344. Website: alliancemobilehealth.org. YOUNG BASILE. Strategic advisors to the world’s EXPANSIONS most innovative companies. Children’s Hospital of Michigan, De- troit, has opened Children’s Hospital of Michigan-Troy, 350 W. Big Beaver ANN ARBOR TROY SILICON VALLEY CHICAGO Road, Troy. Telephone: www.youngbasile.com (248) 524-7180. childrensdmc.org.

Sea Life Michigan Aquarium, Auburn Hills, has added a new exhibit, CLAWS, featuring a variety of crus- taceans from around the world. Telephone: (866) 622-0605. Website: visitsealife.com/michigan.

Henry Ford Health System, Detroit, announced the opening of the Daily Monitoring and Systematic Rebalancing can capture more Henry Ford Women’s Heart Center, Systematic gains from market volatility. Come learn how our process is part of the Edith and Benson Ford designed to keep your investments in balance. Heart & Vascular Center at the William Clay Ford Center for Athletic Medicine, Rebalancing 6525 Second Ave., Detroit. Telephone: (313) 876-4540. Is your advisor Website: henryford.com equipped to monitor your asset allocation Hotel Investment Services Inc., Troy, announced the opening of Holdiay everyday? Inn Express & Suites-Plymouth, 15100 Beck Road, Plymouth. Telephone: (734) 969-8100. Website: his- corp.com/managed- properties/holiday-inn-express- plymouth-mi/

Hino Trucks, Novi, a Toyota Group company, Hino’s new California parts distribution and training cen- ter, Ontario, Calif. The training facil- ity was designed as an extension of Hino’s national training center in Novi to support a growing dealer network. Telephone: (248) 699 9300. Website: hino.com.

Deals & Details guidelines. Email [email protected]. Use any Deals & Details item as a model for your release, and look for 248.731.9500 | WWW.SCHECHTERWEALTH.COM the appropriate category. Without complete information, your item will Investment Advisory Services offered through Schechter Investment Advisors, LLC. not run. Photos are welcome, but we cannot guarantee they will be used. 20160229-NEWS--0020-NAT-CCI-CD_-- 2/25/2016 4:17 PM Page 1

20 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 SPOTLIGHT nomic Forum Breakfast. 7:30-10 a.m. p.m. March 10. Detroit Regional March 7. Michigan Hispanic Cham- Chamber. Experts from govern- O’Malley leads , CALENDAR ber of Commerce. “Strengthening ment, law enforcement and the pri- Farmington Hills America: Hispanic Opportunity and vate sector will cover topics to help WEDNESDAY sor, UM Law School; and Matt Gibb, Impact” to feature speakers Detroit businesses navigate the National Beaumont Hospital-Farmington MARCH 2 deputy Oakland County executive. Mayor Mike Duggan and U.S. Sen. Institute of Standards and Technol- Hills appointed Constance O’Mal- Autonomous Vehicles: Opportunities Automation Alley, Troy. $30; walk-in Debbie Stabenow, D-Mich. Moderat- ogy cybersecurity framework. De- ley as president. She will be the and Challenges. 7:30-11 a.m. Au- price: $40. Email: info@automa- ed by Javier Palomarez, president troit Golf Club. $75, $25 for cham- first woman to lead the hospital. tomation Alley. Seminar explores tionalley.com. Phone: (800) 427- and CEO, U.S. Hispanic Chamber of ber members. Contact: Marianne O’Malley the challenges and opportunities 5100. Commerce. MGM Grand, Detroit. Alabastro, phone: (313) 596-0479; takes over that self-driving cars will pose, in- $100. Contact: Barb Lange Phone: email: malabast@ from Dr. Paul cluding legal, economic growth and UPCOMING EVENTS (248) 792-2763; email: blange@ detroitchamber.com LaCasse, who policy considerations. Speakers in- Government Forecast Breakfast. 9- mhcc.org; website: mhcc.org has been clude John Maddox, assistant direc- 9:30 a.m. March 7. Birmingham named vice tor of the University of Michigan Mo- Bloomfield Chamber of Commerce. JVS Trade Secrets. 6-9:30 p.m. March 9. Calendar guidelines. Visit president of bility Transformation Center and Speaker: U.S. Sen. Gary Peters., D- JVS. Speaker is fashion designer Linda crainsdetroit.com and click “Events” the post- director of collaborative program Mich. The Townsend Hotel, Birm- Schlesinger-Wagner, founder of Skinny- near the top of the home page. acute care di- strategy, UM Transportation Institute; ingham. $50, $40 members, $290 tees, a company that has grown from Then, click “Submit Your Events” Constance vision and di- Richard Walawender, corporate corporate table of eight. Contact: selling in a single shop to an $8 mil- from the drop-down menu that will O’Malley versified group co-leader and director of the Birmingham Bloomfield Chamber lion clothing line sold in stores, on- appear. Fill out the submission form, business op- international practice and automo- of Commerce. Phone: (248) 644- line and on QVC. Temple Beth El, then click “Submit event” at the erations for Beaumont Health. tive practice groups, Miller Canfield; 1700; email: Chamber130@ Bloomfield Hills. $150. Contact: Judy bottom of the page. “I am thrilled to lead Beau- Tom Kelly, COO and director of en- bbcc.com Strongman, phone: (248) 233-4213; mont-Farmington Hills,” O’Mal- More Calendar items can be trepreneurship, Automation Alley; email: [email protected] ley said in a statement. found at crainsdetroit.com/events. Bryce Pilz, clinical assistant profes- 12th annual MHCC Public Policy & Eco- Cybersecurity Conference. 7 a.m.-2 O’Malley previously served as vice president and COO of Beau- mont Hospital-Troy and vice pres- ADVERTISING SECTION ident of surgical services and trauma, transplant and ambula- tory services at Beaumont Hospi- tal-Royal Oak. She also held other ACCOLADES health care leadership positions. Fathead CEO McInnis Warner Norcross & Judd LLP was recently recognized becomes chairman by PulteGroup, Inc. as its 2015 Law Firm of the Year. Pat McInnis, CEO of Detroit- based Fathead LLC for seven One of America’s largest homebuilding companies, Pulte recognized the years, has law firm at its Legal Summit and highlighted the work of: been named chairman TECHNOLOGY · Mary Jo Larson, client service manager for Pulte who oversees a and will work Warner Norcross team of seven attorneys and staff focused on on special employee benefits issues for the 4,000-employee company projects with · Lisa , who helped with special projects company · Jennifer Watkins, who assisted with compensation and EB issues owner Dan Gilbert, a Fat- · Norbert Kugele and April Goff, who focused on health care reform Pat McInnis and other welfare issues head spokes- woman said in an email to Crain’s. Fathead would not say if an- other person has been named FINANCE NONPROFITS CEO. A handful of other leader- ship changes took place at the Jeff Schultz, wall graphics company, but “no Vice President, National Business Mark Lewandowski, Marcia Ventura, other staff reductions,” the state- Development, Commercial Relationship Senior Vice President, ment said. Manager, Before taking the top job in QStride, Inc., Invest Detroit, Talmer Bank and Trust, 2009, McInnis had been presi- Schultz, after almost a decade with global IT Invest Detroit is pleased to dent of Detroit-based Quicken leader Genpact, will be responsible for Mark joins a team of announce that Marcia Loans Inc. since 1993, according national business development activities seasoned relationship Ventura has joined the to his Linkedin profile. including client recruitment, operations, sales managers responsible for servicing the banking organization as Senior Vice President. and business relations management. Schultz needs of Southeast Michigan's local real estate Marcia's primary areas of responsibility Ehrlich to step down as is a graduate of Central Michigan University developers. Lewandowski brings over 30 years include the New Markets Tax Credit program where he studied business administration and of banking experience in commercial real estate and Commercial Real Estate transactions Arotech exec chairman was a member of the Men's Varsity Soccer lending. He held other roles at Comerica Bank across Invest Detroit's targeted loan funds. Robert Ehrlich, executive chair- program. He is a "Friend" of the Michigan including managing the collection of non- Ms. Ventura has more than 20 years of man of Ann Arbor-based Arotech Ballet Theater and enjoys spending time with performing assets, as well as the disposition of experience, most recently as Vice President of Corp. and CEO from 2002 to his wife and daughter. bank owned properties. Lender Relations at M Shapiro Real Estate 2014, will step down from the Group, a private Southeast Michigan board of directors in May after Kevin Reid, Jason Ramus, development company. deciding not to seek re-election Relationship Manager for to another term, the company Manager of IT and Commercial Real Estate announced. Communications, Banking James Quinn, 63, former Ulliance, Inc., Talmer Bank and Trust, For more information Northrop Corp. vice Ramus is responsible for IT Reid joins Talmer Bank with president of business develop- staff supervision and almost 11 years of experience with a focus on or questions regarding ment, will be the board nominee oversees IT initiatives, including application and commercial real estate. He was most recently to fill Ehrlich’s vacancy at an an- website development, network administration, with First Merit Bank as Vice President, where advertising in this section, nual shareholder meeting. He IT equipment upgrades and maintenance, and he was responsible for managing a significant and current President-CEO Steven Esses technical support. Prior to joining Ulliance, portfolio of commercial real estate loans please call Lynn Calcaterra at , along with current Kenneth Cappell Ramus, a Royal Oak, Michigan resident, was throughout Michigan. Prior to that, he held director , are president of datasoph, a web and mobile multiple positions at PNC Bank, which all had a (313) 446-6086 or seeking new three-year terms on application development company in Royal heavy focus on commercial real estate. the seven-member board. Oak. His previous work experience also email: [email protected] Ehrlich, 78, will remain chair- includes developer roles with 3CSI and General man of Arotech’s Iron Flow Stor- Motors. age development program. 20160229-NEWS--0021-NAT-CCI-CD_-- 2/26/2016 3:56 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 21 JOB MARKET FRONT PLACE

MISCELLANEOUS INVESTMENT OPPORTUNITIES

INVESTMENT OPPORTUNITY SURVEY Current partners seeking an owner/ operator to buy into and run an upscale ANALYZE coffee shop in S.W. Oakland Co. Great staff in place now with positive cash flow. Serious inquiries only: MATCH Email Inquiries to: [email protected] Reference box #2001 in subject line

MISCELLANEOUS For much of last year, finding a long-term funding source for Michigan’s crumbling roads and bridges was a priority at the Capitol. Since then, the water emergency in Flint has become the state’s most immediate problem, but the Flint crisis also is drawing attention to the NEED WAREHOUSING? condition of infrastructure statewide. CrainsDetroit.com/JobConnect | Plymouth & Livonia Area POSITIONS AVAILABLE • Cross-Dock Services • Trucking Services Upcoming projects aging lead and copper pipes but • Diverse Supplier • Reasonable Rates ROADS also reward communities that com- û DESIGNER û Call 810-701-0833 The Michigan Department of FROM PAGE 3 bine infrastructure repairs with Transportation has identified seeks road or utility projects. Lead Designer-Exterior [Req #6BS1109] significant road projects in metro istration fees also will increase by 20 Some in the industry say that Produce & present interior sketches, percent next year. Detroit for 2017. They include: would be a good move, even with rendering & full scale illustrations for Call or email today for information production auto prods. The impact of that new revenue I-94 (Wayne County) the eventual infusion of new cash Job location: Ann Arbor, MI. on a custom advertising plan! means less of an immediate drain for roads. What: Replacement of five bridges: Mail resumes to: on the state’s general fund. Snyder “If we’re redoing (the road), let’s Calty Design Research Gratiot, Second, Cass avenues; Attn: Sunny Higgins [email protected] proposed transferring $10.4 million be smart about this and use a little Brush, Chene streets 2810 Jamboree Rd in 2017 to keep the budget for state bit of resources and fix the infra- Newport Beach, CA 92660 313.446.6068 road and bridge projects at the When: TBA structure underneath it,” said Mike Must reference code to be considered. same level as this year, Timpf said. Cost: $50.4 million Nystrom, executive vice president That’s considerably less than the of the Michigan Infrastructure & Trans- I-75 (Wayne County) $400 million in general fund sup- portation Association. “(Municipali- REAL ESTATE port for transportation in the cur- Where: Near Rouge River and Fort, ties) are going to have to match rent fiscal year, $265 million in 2015 Goddard streets those dollars. State money is not WATERFRONT PROPERTY and $451 million in 2014, MDOT What: Deck replacement at Rouge going to fix this problem.” spokesman Jeff Cranson said. River and Fort Street, bridge More money sooner New roads revenue will be col- replacement at Goddard Street lected for nine months of 2017 Local governments will have rather than the full fiscal year, and When: Spring 2017 start on some help starting next year. MDOT that income combined with other southbound construction and county road commissions each M 25*$1 W $7(5)5217 federal funding increases came in (southbound traffic will be receive 39 percent of the road-fund- slightly short of current levels with- detoured for entire two-year ing pot through a state formula, out the extra general fund dollars, project); 2018 start on northbound while cities and villages receive 22 Timpf said. construction (northbound traffic percent. That equates to a com- will use new southbound lanes). Seed investment bined $283 million for local road Project to coordinate with new agencies, according to Snyder’s /X[XU\ *DWHG&RQGRFRPPXQLW\ ZLWK1(= RQ'HWURLW 5LYHUIURQW Gordie Howe International Bridge Some of Michigan’s road-funding budget, compared to $189 million FRQGROD\RXWV WR FKRRVHIURP LQFOXGLQJ55DQFK VW\OH problem was the result of a stagnant Cost: $125 million for the state.  JRUJHRXV (67$7(6 VI ZLWK VHDZDOO DYDLODEOH state gasoline tax since the late Status: In design “It’s a big deal. They’ll start to see, 1990s. As a result, much of the gen- proportionately, a lot more money a eral fund money diverted to roads M-59 (Macomb County) lot sooner,” Cranson said. “When 313 658-6400

was needed just to match Michi- Where: M-53 to Hayes Road somebody complains about pot- 3UHVHQWHG E\ gan’s share of federal road dollars, holes, they’re not talking about I-96 What: Reconstruction in both Cranson said. for the most part. They’re talking THE LOFT WAREHOUSE .com directions, including removal of The roads package was criticized about their local streets.” concrete, addition of new drainage by Democrats and some business Michigan’s local road depart- COMMERCIAL PROPERTIES INVESTMENT PROPERTY and filling in sidewalk gaps groups for the amount of time it will ments also will receive $32 million in FOR SALE - SHELBY TWP. - 5,715 S.F. Industrial. take for all the money to be realized, When: Spring 2017 start, with federal funds through the Fixing Southfield Development Sites 16 foot clear, two overhead doors, extensive floor completion within one construction drain system. One general and two private offices. and for its reliance on $600 million America’s Surface Transportation, or μ B-1 Zoning 1.0 Acre Lahser/10 Mile Broker/Owner 248-705-0835 in existing spending. year FAST, Act President Obama signed in Across from Southfield High School μ Starting in 2019, money will be di- Cost: $35.2 million December, according to Snyder’s 7.99 Acre Site 12 Mile & Inkster verted from the general fund for budget. The federal bill allocates Great for Multi-Family Potential Rezoning Status: In design OFFICE SPACE roads — $150 million that year, $325 $305 billion nationally over five years million in 2020 and the full $600 mil- Source: Michigan Department of and is being praised for bringing cer- Jonathan Brateman Properties, Inc BRIGHTON - GRAND RIVER FRONTAGE lion by 2021, MDOT estimates show. Transportation tainty to road project planning. NEW OFFICE SPACE - FOR LEASE (248) 477-5000 The first year of shifting money out Michigan should receive 2,000 - 32,000 S.F. Suites of the general fund shouldn’t put too $15 million in FAST Act funds for Chestnut Development, LLC [email protected] 6253 Grand River, Brighton MI much of a strain on other budget pri- millions of dollars to help the city state trunklines. www.bratemanproperties.com STEVE GRONOW ~ 810-599-5147 orities, Noyola said. He added of later deal with a public health crisis Noyola, of the county road asso- www.chestnutrealestate.com/chestnut-landing years: “We’ll cross that bridge togeth- caused by lead contamination in its ciation, said his agencies hope er when we get there.” drinking water, and Snyder has pro- the certainty of future revenue For much of last year, finding a posed another $195 million for Flint will allow them to do more pre- The Crain’s reader: long-term funding source for Michi- in his 2017 budget. liminary engineering work that gan’s crumbling roads and bridges Yet the crisis in Flint also is draw- could speed up projects. 29.2% are with companies was a priority at the Capitol. Snyder ing attention to the condition of in- “If you can look forward and contemplating moving/ in November signed the $1.2 billion frastructure statewide. Snyder has know what the future holds, that’s a expanding. Help them legislative package that raises new proposed using $165 million of good thing for these companies,” revenue and diverts some money what otherwise would go into the Nystrom said. “And with the federal find you by advertising in from the state’s general fund. state’s reserves next year to create a plan in place and the state plan in Crain’s Real Estate section. Since then, though, the water Michigan Infrastructure Fund. place, it allows these companies to Ⅲ emergency in Flint has become the Snyder views the money as a do some good forecasting.” 313.446.6086 • FAX: 313.446.034 7 state’s most immediate problem. seed investment that could not only Lindsay VanHulle: (517) 657-2204 E-Mail: cdbclassif [email protected] Lawmakers have approved tens of help cities across the state identify Twitter: @LindsayVanHulle 20160229-NEWS--0022-NAT-CCI-CD_-- 2/26/2016 3:57 PM Page 1

22 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016

pected to close in July, he said. MONDRIAN Jackson is minority owner of FROM PAGE 3 Queen Lillian Development. Jim ested tenants, lenders wanted 50 Jenkins is majority owner of the BECAUSE EVERYONE percent of the building preleased to company and is president and CEO approve a construction loan. of Detroit-based Jenkins Construction WILL REMEMBER “We were chipping away at it Inc., which will be the construction slowly but surely, but it wasn’t get- manager on The Mondrian. ting to that critical mass” of 35,000 Detroit-based Hamilton Anderson As- HOW YOU ASSISTED or so square feet pre-leased, said sociates LLC is the project architect for Jackson, a former staffer to Detroit Queen Lillian, which takes its name YOUR PEOPLE. City Council President Gil Hill and from Jackson’s mother (Lillian) and former part owner of Greektown the mother (Queen) of its other Casino-Hotel. founder, the late Don Davis, who co- Ulliance Provides Support for Displaced and Remaining That office lending prerequisite is founded Detroit-based First Indepen- Employees When Workforce Changes Happen par for the course, said Dennis dence Bank in 1970 and also had a dis- Bernard, founder and president of tinguished career as a record Key Program Differentiators: Southfield-based Bernard Financial producer and musician. Group Inc. First Independence was founded • Because Ulliance focuses on the “people side” of career transition, “Unless you’re a really big player, to provide mortgage and commer- we can offer a higher level of service at rates 20-25% less than our you need at least 50 percent pre- cial loans to the area’s underserved competitors. leasing before you’re going to get a black community at a time when construction loan,” said Bernard, redlining made it difficult for them • We are experts at addressing the emotional side of job loss and whose company originates debt for to buy homes. career change for an individual or a group of employees. real estate deals. Richard Hosey, a former senior • That’s when the multifamily de- vice president for Bank of America NA Ulliance provides counseling to the employee’s family, who is often velopment, the first phase of which who now owns Detroit-based Hosey impacted more profoundly by the job loss than the employee. is expected to cost $24 million, be- Development LLC, said finding fi- came the project focus. nancing for projects $10 million or Construction loans for those less is easier than more expensive projects are typically issued based ones because of what he called “ac- on market demand and expected tive social lenders. Invest Detroit, rental rates. the Detroit Investment Fund and Capi- There are 68 units with an ex- tal Impact Partners, for example, are pected average rental rate of $2.07 more active in that space. per square foot in The Mondrian’s “Once you get above that $10 Contact Ulliance at 866-648-8326 or www.ulliance.com first phase, which would also in- million level, now you need to be clude a 150-space parking deck and working with one of the large banks the first-floor retail space. (About like J.P. Morgan Chase; Fifth Third is 10,000 square feet remains after ex- starting to get active in the market, pected leases by Huntington Bank and Bank of America is returning to and a pharmacy, Jackson said.) the market,” he said. “And it’s a A second phase would be built longer walk making sure that all of with an additional 36 units on top of their concerns are satisfied.” the attached parking deck with He said The Mondrian should fill about 150 spaces, Jackson said. The an ongoing need for residential second phase would be about $4 units along the Woodward Avenue million, bringing total project cost spine through downtown, particu- to $28 million. larly along its western side south of First-phase financing is expected MLK. In Midtown, the multifamily to come from a $14 million first-po- occupancy rate is around 98 per- sition mortgage; $1.7 million from In- cent, according to a December vest Detroit; $3.5 million from the 2015 Midtown Detroit Inc. report, Michigan Strategic Fund’s Community which surveyed 6,072 units in 149 Revitalization Program; $2.2 million properties in the area. in owner equity; and $1 million in “It’s good to see him on that side U.S. Department of Housing and Urban De- of the block, and I expect it to spur velopment HOME Investment Part- activity,” he said. Ⅲ nership Program funds, according to Kirk Pinho: (313) 446-0412 Jackson. The financing stack is ex- Twitter: @kirkpinhoCDB

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CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 23

Healthcare Corp., a top 15 academic “We pay them the same rate for PACT health system as measured by Tru- teaching,” Mullany said. “The clini- FROM PAGE 3 ven Health Analytics in Ann Arbor. cal coverage has declined for several cause their success is our success,” “We want to create more pro- reasons. Medicaid expansion has Mullany said. “Right now we have a grams of distinction that people are led to less indigent care ,and pay- vendor relationship, and a weak willing to travel 50 miles or more to ments have been reduced because one. We want much more.” seek care at DMC,” Hefner said. less services” are provided by Wayne Mullany said he wants a multiyear Wayne State’s goal is to become a State faculty physicians. deal to avoid triggering automatic top 40 medical school by clinical, re- But Hefner said if DMC wants six-month extensions that would fail search, educational quality, costs, ac- to become Wayne State’s full part- to meet expectations of both sides. cess and innovation as measured by ner and primary teaching hospi- “I understand Wayne State is in the National Institutes of Health research tal, the contract should include middle of a turnaround,” Mullany funding. Wayne State is now ranked the following: said. “They have productivity issues 69th nationally. Ⅲ A long-term contract instead of and need to consolidate a lot of posi- To achieve their goals, Wayne State a series of transactional provisions. tions, but it’s difficult because faculty and DMC have just begun to address Ⅲ Mutual agreement to coordi- have tenure.” a laundry list of contract issues. nate strategic planning. Last December, Wayne State an- Experts interviewed by Crain’s say Ⅲ Commitment by DMC to in- nounced it was undertaking a finan- the thorniest issue will be what an- vest in research infrastructure to cial turnaround plan because a re- nual payments DMC will make to help support Wayne State’s $100 view discovered a $29 million annual Wayne State for clinical services, million annual biomedical grants. loss — amounting to a $1.5 million- teaching and administration. They Ⅲ Shared governance in which per-month burn rate — for the med- say both sides have long-standing top executives sit on each other’s ical school and its faculty medical gripes about the other. management committees. group. This was just two months “DMC can’t get to a top 15 aca- Ⅲ DMC becomes Wayne State’s after learning the school had been demic health system without a vi- primary teaching affiliate for med- taken off accreditation probation. brant medical school partner,” said ical students, residency programs Hefner acknowledged Wayne Hefner, noting that a specific dollar and clinical programs. State is putting in place financial con- increase hasn’t been broached yet. For example, Hefner said DMC trols and a three-year turnaround Mullany said he believes DMC needs to increase the number of plan. He said a long-term contract of pays Wayne enough for services. To medical students trained at DMC 10 years or more with an increase in reduce its costs, Wayne needs to im- hospitals. Currently, DMC trains one- payments is critical to its success. prove efficiencies and faculty produc- third of the 800 Wayne State students “If DMC is that interested in repo- tivity to improve operations, he said. on rotation at any given time. The rest sitioning themselves as a true aca- But Wayne State officials have go to Henry Ford Health System hospi- demic medical center with a medical said DMC has short-changed tals, St. John Providence Health System school as a true partner to improve Wayne over the past seven years hospitals, Beaumont Hospital Dearborn, health care in Detroit,” then the con- and needs to boost payments for John D. Dingell VA Medical Center and St. tract needs to be strong on the trans- administrative services and full- Joseph Mercy Health System hospitals. actional side but also transforma- time equivalent physician pay. Mullany said DMC has a capacity tional in nature, Hefner said. Hefner said “the payments now for more medical students. He didn’t “It is the only way to get us to a top received by Wayne (does not create) say how many more, but Hefner said 15 academic health system and a top a sustainable relationship.” at least half must be trained there to 40 medical school ranking,” he said. Mullany said DMC funding has be considered Wayne’s primary Mullany confirmed his goal is to declined because Wayne simply teaching partner. Ⅲ make DMC, a for-profit hospital provides fewer patient services than Jay Greene: (313) 446-0325 owned by Dallas-based Tenet in previous years. Twitter: @jaybgreene

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24 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 Detroit shifts to 2nd gear in bankruptcy settlement plan By Chad Halcom Recent dismissals range ifrom a different company — basically that that pre-petition payments allow (are) things where a company was [email protected] $1.2 million claim against DTE Ener- it did not get inappropriate or pref- some creditors to collect more than sued and shows it shouldn’t have been As Detroit considers ramping up gy Co. and an $826,526 claim against erential treatment as a creditor, they would have via the normal sued,” said Scott Wolfson, partner at one possible legal strategy to recov- Plante & Moran LLP, to a $68,620 local bankruptcy attorneys said. bankruptcy process. Troy-based Wolfson Bolton PLLC. er money from its costly Chapter 9 claim against Arrow Office Supply Co. Deputy Corporation Counsel Creditors, however, typically can Sheryl Toby, a senior partner in bankruptcy, another one from last that was settled in mid-February. Charles Raimi said Bankruptcy Judge counterclaim they were paid in the bankruptcy, insolvency and fall has started to gain some resolu- But the deals do not all mean Thomas Tucker put a hold for a while their “ordinary course of business” creditors’ rights practice at Dykema tion in court. money in the bank for Detroit, on the claims to give the city a chance — say a typical monthly payout Gossett PLLC, said there is no set rule Of the 180-plus vendors targeted which estimates it brought 185 to meet with vendors and resolve as within 30 days after a regular serv- on how much a debtor will really in $50 million worth of legal actions cases through New York bankruptcy many of them as possible, even be- ice, rather than a negotiated pay- collect on preference actions. late last year for “preferential” pay- law firm Togut, Segal & Segal LLP in fore the vendors had to make early ment on accumulated debt, in To some degree, she said, that ments prior to Detroit’s July 2013 the run-up to a Dec. 5 filing dead- procedural replies in court. order to protect those who do busi- will depend on how much scrutiny bankruptcy, a dozen companies ei- line to seek refunds on alleged pref- The city went through an extensive ness with a troubled company. or defense a debtor applies to its ther settled or reached agreements erence payments. review but had to bring any and all Preference payment suits are potential claims before filing suit to to dismiss $3.8 million in claims just In many cases the company ob- claims by the deadline to preserve its somewhat common after large bank- recover payments. in the past four weeks. tained a dismissal because it could chances to collect from a vendor. Ad- ruptcies are concluded, and local at- “If they applied a certain kind de- An additional $2 million-plus document its payments were ap- ditional facts have come in on many torneys said the first cases to settle fense prior to filing, and took that more in claims are awaiting a settle- propriately made in the “ordinary of the payments since then, he said. are often those where the facts are into account at the very beginning, ment approval in a matter of days or course of business” with the city. Federal bankruptcy law typically clear-cut either for or against the ven- then generally there’s going to be a close to a judgment because the Other companies might have allows a debtor to recoup payments dor. Rarely if ever does a post-bank- much lesser discount” when cases company hasn’t responded and is in been able to show they had a con- that creditors receive within 90 days ruptcy debtor get all the money back settle, she said. Ⅲ default, according to U.S. Bankruptcy tract that continued through the before filing bankruptcy, when a that it requests. Chad Halcom: (313) 446-6796 Court records in Detroit. bankruptcy or was assumed by a debtor was insolvent, on the basis “Typically what settles out early Twitter: @chadhalcom

sumptions. If there’s going to be any $57.9 million during the bankruptcy gency manager’s team, the change in the city’s retirement system, Gener- PENSIONS bad guy, it’s going to be the profes- case, Duggan said. After discovering the assumed rate of returns and the al pension fund spokeswoman Tina FROM PAGE 1 sion as a whole. The standards of re- the apparent $491 million shortfall, shift to a market-based return from Bassett wrote in an email to Crain’s. view are not stringent enough.” Duggan said the city is considering an actuarial-based return as is com- “We will continue to monitor the consultant was to blame for al- A New York hedge fund president a malpractice lawsuit against bank- monly used by virtually every other situation and work closely with the legedly using outdated mortality ta- criticized Duggan’s legal threat. ruptcy consultants. public pension system in the coun- city to ensure all obligations and bles to calculate life expectancy of “Duggan’s nuts; at best, this is a des- “It’s a pretty adversarial situation,” try,” Babiarz added. payments are met,” she said. city retirees, but the city’s actuary perate political stunt to garner good- Duggan said during a Feb. 25 budget While the city was under Orr’s The city has not talked to Jones during the bankruptcy case was will,” said David Tawil, co-founder and presentation. “What we are learning control almost entirely during the Day lawyers since discovering the Seattle-based Milliman Inc. The city president of New York City-based leads us to believe that the consult- bankruptcy, Duggan and City alleged shortfall, Hill said. paid Milliman $1.97 million, ac- Maglan Capital. “How’s he polling?” ants knew they were using out-of- Council members had access to key But the city has sent notice not to cording to bankruptcy records. Orr briefly flirted with switching date life expectancy tables and did documents. destroy documents that could help In November, the pension funds’ city workers to a 401(k)-style plan but not share that with me or (CFO John Council President Brenda Jones explain what led to the apparent actuary, Southfield-based Gabriel, later dropped the idea. U.S. Bank- Hill). It never occurred to me to bring testified during the city’s bankrupt- miscalculation, Duggan said. Roeder, Smith & Co., performed an ruptcy Judge Steven Rhodes, who in someone to cross-examine and cy case in October 2014 that she “The consultants took the docu- updated mortality study. presided over Detroit’s restructuring, find out if the tables were current. hadn’t read key portions of the debt- ments with them,” Duggan said. The study concluded that instead told the Detroit Free Press early last “I was not allowed to run the fi- cutting plan, including a report pre- “The documents we are finding are of $111 million, starting in 2024, De- year that not implementing a 401(k)- nances or actually have any input pared by Birmingham-based turn- encouraging us to go forward” with troit needs to pay $194.4 million, ac- style plan was a “missed opportuni- other than what the judge allowed me around firm Conway MacKenzie Inc. pursuing a lawsuit. cording to a Nov. 24 letter from the ty” and said at Crain’s Newsmaker of under the emergency manager law.” “At the time of your deposition, Deputy Corporation Counsel Michigan Department of Treasury to the Year event last year that states and A Jones Day spokesman did not you hadn’t walked through each of Charles Raimi told Crain’s last week Gov. Rick Snyder, with further pay- municipalities need to move to simi- respond to a message seeking com- the restructuring initiatives with the city might work with an outside ments in subsequent years adding lar defined-contribution plans. ment. Mayor Duggan, had you?” she was law firm if it decides to sue. up to $491 million. The alleged miscalculation in the The city faces a “tough hurdle” if asked. It’s still too early to tell what legal A Milliman spokeswoman did city’s debt-cutting plan happened Duggan files a lawsuit because bank- “No, I had not,” Jones said. claims might be viable or who the not respond to messages last week even though the plan was reviewed ruptcy consultants were shielded “And you hadn’t sat down with most likely defendants would be in seeking comment. Former Detroit by Duggan and city officials, ap- from most liability as part of Detroit’s Mayor Duggan and gone through a lawsuit. emergency manager Kevyn Orr did proved by a judge and crafted by a debt-cutting plan, Bernstein said. the amount of money that had been “We’re still looking at all of that, not respond to messages last week team of consultants and bankrupt- The bankruptcy plan insulated allocated under the (restructuring but I expect that’s something we seeking comment. cy lawyers who were paid $177 mil- Orr and consultants from liability and reinvestment initiatives) for would be working out very quickly,” Jeremy Gold, consulting actuary lion while working for Orr. except for gross negligence or will- each of the city departments, right?” Raimi said. and owner of New York-based Jere- “The optics are not good,” said ful misconduct, according to De- Jones was asked. In the meantime, the city will my Gold Pensions, said Friday that Douglas Bernstein, a banking and troit bankruptcy records. “No, I had not,” she said. contribute $20 million through next public pension plans are modeled a bankruptcy partner with Bloom- “If what Duggan says is true, is On Thursday, Jones said she was year to help fill the $491 million bit differently than private sector field Hills-based Plunkett Cooney PC. this a level of failure so far beyond surprised to learn of the shortfall. shortfall, Duggan said. ones that follow the federal Employ- “Because one of the main purposes the duty that it constitutes gross “It’s a great shortfall that we had The city has money thanks, large- ee Retirement Income Security Act, for going through the bankruptcy negligence?” Bernstein said. “That not expected,” she said. “Jones Day ly, to the bankruptcy, which let De- where actuaries have more control was to clean up this problem.” would be a tough hurdle.” was paid good money to do a job. ...” troit shed about $7 billion in debt. over assumptions about mortality But consultants did not share the It is unfortunate that nobody Conway MacKenzie officials de- Detroit is projecting at least a and liability projections. mortality data with city officials caught the miscalculation, Bern- clined to comment, citing confiden- $30 million surplus this year as part In public plans, actuaries often during the bankruptcy, a move that stein said, assuming the shortfall is tiality restrictions. of a $1.077 billion proposed general advise or consult with plan adminis- delayed Detroit learning about the accurate. The city has more than 25,000 re- fund budget, Duggan said. trators and their governing boards, $491 million pension fund shortfall, “Didn’t someone have the oppor- tirees, active workers and benefici- He said the city also is on track to and projections can sometimes vary Duggan said. tunity to point this out or was every- aries who receive benefits from two have three years of balanced budg- up to 50 percent between firms. Duggan leveled that allegation in body asleep at the switch?” Bern- Detroit pension funds, one repre- ets and by January 2018 could be “The actuaries are not required to the wake of his claim last week that stein said. senting police and fire personnel freed from oversight of a financial comment on whether or not what bankruptcy consultants used out- Police and fire pension fund offi- and a fund representing non-uni- review commission created as part they are asked to assume is reason- dated data to forecast retiree life ex- cials saw the shortfall coming before formed employees. of the bankruptcy plan. able, and for reasons of their own they pectancy. the city exited bankruptcy court. The Police & Fire Retirement Sys- “We need three straight balanced often seem to assume their clients’ as- “Right now, we are doing well and “There was a rush to enter into tem is 88.9 percent funded and has budgets so it is absolutely critical we sumptions are reasonable,” he said. our property tax revenues are run- bankruptcy and an equal push to $3.1 billion in assets. finish 2017 with a balanced budg- “I’m not faulting individual actu- ning so far ahead of budget that we’ve exit bankruptcy without a full The General Retirement System et,” Duggan said during a Feb. 25 aries. They’re in a hard, competitive got a cushion,” Duggan said. “If that analysis of all the actuarial data,” pension fund is 62.5 percent funded budget presentation. “I would like environment. If they give numbers trend grows (of people moving back fund spokesman Bruce Babiarz said and has $2 billion in assets. to return self-determination all the that don’t allow for small enough into the city), we can sustain our serv- in a statement. The city has agreed to fully fund way back to city government.” Ⅲ contributions in the present for ices and continue that contribution.” “The longtime actuaries for the both retirement systems starting in Kirk Pinho and Chad Halcom their client, there’s pressure they The shortfall has soured the city’s pension system warned about short- 2024. contributed to this report. may lose to a competitive firm that relationship with Cleveland-based falls during the bankruptcy based on The Duggan administration has Robert Snell: (313) 446-1654 makes different numbers and as- law firm Jones Day, which was paid the actuarial tables used by the emer- consistently pledged to fully fund Twitter: @robertsnellnews 20160229-NEWS--0025-NAT-CCI-CD_-- 2/26/2016 5:02 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 25 CRAIN’S DETROIT BUSINESS Campaign backers from Michigan business community www.crainsdetroit.com Editor-in-Chief Keith E. Crain A sampling of Michigan business and government leaders who gave the maximum individual contribution ($2,700)* to presidential candidate campaigns: Group Publisher Mary Kramer, (313) 446-0399 or [email protected] Hillary Clinton Ⅲ David Provost, chairman and CEO, Talmer Scott Walker Editor Jennette Smith, (313) 446-1622 or Bank and Trust [email protected] Ⅲ Dan Stamper, Ⅲ Manuel “Matty” & Director, Digital Strategy, Audience Development Ⅲ Nancy Hanus, (313) 446-1621 or president, Ambassador Robert Taubman, chairman and CEO, Matthew Moroun $2,700 [email protected] Bridge Taubman Centers Inc. each Managing Editor Michael Lee, (313) 446-1630 or [email protected] Ⅲ Joseph Mullany,CEO, Ⅲ Bobby Schostak, CEO Templar Baker Group Ⅲ Doug, Helen, Maria, Managing Editor/Custom and Special Projects Detroit Medical Center and former Michigan Republican Party Pamella, Richard, Dick, Daniel Duggan, (313) 446-0414 or [email protected] Suzanne, Betsy, Daniel Ⅲ Brenda Lawrence,U.S. chairman Assistant Managing Editor Kristin Bull, Ⅲ DeVos $2,700 each (313) 446-1608 or [email protected] representative D-Southfield David and Mark Schostak, Schostak Bros. News Editor Beth Reeber Valone, (313) 446-5875 or [email protected] Ⅲ Nancy Schlichting $2,700 each Chris Christie , CEO, Henry Ford Health Senior Editor Gary Piatek, (313) 446-0357 System Ⅲ Sandy Baruah, president and CEO, Detroit Ⅲ Dan Gilbert, chairman, or [email protected] Regional Chamber Quicken Loans Inc. Research and Data EditorSonya Hill,(313) 446-0402 Ⅲ Denise Ilitch, president, Ilitch Enterprises or [email protected] Ⅲ Roger Penske, chairman and CEO, Penske Editorial Support (313) 446-0419; YahNica Craw- Ⅲ Isaiah “Ike” McKinnon, deputy mayor, city of ford, (313) 446-0329 Detroit Corp. (NOTE: Penske’s contribution is listed to Newsroom (313) 446-0329, FAX (313) 446-1687 , Mooresville, N.C., address) TIP LINE (313) 446-6766 Ⅲ David Provost, chairman and CEO, Talmer REPORTERS Bank and Trust Marco Rubio Ⅲ Jay Greene, senior reporter Covers health care, in- Ⅲ Debbie Dingell, U.S. representative Mark Davidoff, Deloitte surance, energy, utilities and the environment. LLP Other contributions of note (313) 446-0325 or [email protected] D-Dearborn Ⅲ Chad Halcom Covers litigation, the defense indus- Ⅲ Ⅲ John Rakolta Jr.,CEO, Richard DeVos Sr., $250,000 to Right to Rise try and education. (313) 446-6796 or Tom Gores, owner, Detroit Pistons (NOTE: USA (pro-Bush super PAC), $250,000 to [email protected] Gores’ contribution is listed to Beverly Hills, Walbridge Tom Henderson Covers banking, finance, tech- Ⅲ Conservative Solutions (pro-Rubio super PAC) nology and biotechnology. (313) 446-0337 or Calif., address) Peter Karmanos Jr., Ⅲ [email protected] owner, Carolina Hurricanes Sandy Baruah, $2,000 to Right to Rise Kirk Pinho Covers real estate, Oakland and Ma- Jeb Bush comb counties. (313) 446-0412 or Ⅲ Ⅲ NHL team, founder, Compuware Dan Gilbert, $500,000 to America Leads [email protected] Hendrik G. Meijer,co- Ⅲ (pro-Chris Christie super PAC), $750,000 to Bill Shea, enterprise editor Covers media, chairman and co-CEO, Patrick Doyle, CEO, Domino’s Pizza advertising and marketing, the business of America Leads, $100,000 to New Day for sports, and transportation. Meijer Inc. Ⅲ Steve Van Andel, chairman, Amway Corp. (313) 446-1626 or [email protected] America (pro-Kasich super PAC) Robert Snell, reporter Covers city of Detroit Ⅲ Richard, Dick, Betsy, Ⅲ Dalton, Daniel, Doug, Betsy, Helen, Maria, and regional politics. (313) 446-1654 or Helen, Maria, Doug & [email protected] Richard & Dick DeVos $2,700 each Lindsay VanHulle, Lansing reporter. (517) 657- Dalton DeVos $2,700 each 2204 or [email protected] John Kasich Dustin Walsh, senior reporter Covers the busi- Ⅲ Bill Schuette, Michigan attorney general Ⅲ ness of law, auto suppliers, manufacturing and Richard, Betsy, Dick & steel. (313) 446-6042 or [email protected] Ⅲ Sam Valenti, CEO, Valenti Capital LLC Helen DeVos $2,700 each Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) Ⅲ Steve Van Andel, chairman, Amway Corp. Ⅲ David Cotton,CEO, 446-1694 or [email protected] Ⅲ Terri Lynn Land, former secretary of state Meridian Health Plan *Contributions were tallied as of late January. ADVERTISING Ⅲ Source: Federal Election Commission Sales Inquiries (313) 446-6032; FAX (313) 393-0997 John Rakolta Jr., CEO, Walbridge Advertising Director Matthew J. Langan Advertising Sales Catherine Grace, Joe Miller, Sarah Stachowicz Classified Sales Manager Angela Schutte, (313) 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 Events Manager Kacey Anderson such donors are placing their sup- Creative Services Director Pierrette Templeton “The instinct right now is for a lot of port post-Bush: In January, Amway Senior Art Director Sylvia Kolaski DONORS Marketing Coordinator Ariel Black FROM PAGE 1 the Bush supporters and donors to Corp. co-founder Richard DeVos Special Projects Coordinator Keenan Covington (Dick DeVos’ father) gave $250,000 Sales Support Suzanne Janik, YahNica Crawford rowed and Bush has left the race. head over to Rubio’s side, but there each to super PACs supporting Editorial Assistant Nancy Powers Production Manager Wendy Kobylarz “We believe that supporting are also a lot of people who are staying Bush and Rubio, Mauger’s analysis Production Supervisor Andrew Spanos candidates is something we on the sidelines.” Susan Demas,Inside Michigan Politics shows. should all be doing,” Dick DeVos Dan Gilbert, chairman of De- CUSTOMER SERVICE Main Number: Call (877) 824-9374 told Crain’s. “What we’re looking troit-based mortgage lender Quick- or [email protected] at is: Who do we think is going to one, adding that “we were not pre- to head over to Rubio’s side, but en Loans Inc. and real estate mag- Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside be the best leader for all of Ameri- pared to make a decision at that there are also a lot of people who nate, gave $100,000 to a super PAC U.S.A., add $48 per year to out-of-state rate for sur- ca? We think Marco Rubio is that early stage.” are staying on the sidelines because backing Kasich — following previ- face mail. Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 leader.” Other top GOP donors already his position doesn’t look particular- ous contributions topping $1 mil- Reprints (212) 210-0750; or Krista Bora at DeVos said he and his wife, Betsy, have invested a lot of money in ly strong,” Demas said. lion to a super PAC supporting [email protected] To find a date a story was published (313) 446- have known Rubio since he was in Bush, but now that he has sus- She is predicting Donald Trump New Jersey Gov. Chris Christie, 0406 or e-mail [email protected] the Florida House. They worked pended his campaign they “may and Clinton victories in Michigan, who also has quit the campaign. Crain’s Detroit Business is published by with him primarily on education is- be gun-shy,” said Susan Demas, based on recent Inside Michigan A spokeswoman for Gilbert said Crain Communications Inc. Chairman Keith E. Crain sues, including expanding school editor and publisher of Lansing- Politics polling that suggests both he does not comment on his politi- President Rance Crain choice. based political newsletter Inside candidates are carrying double- cal contributions. Treasurer Mary Kay Crain Executive Vice President/Operations He said his family contributed to Michigan Politics. digit percentage-point leads. “What we’re seeing is that a few William A. Morrow several candidates early in the race “The instinct right now is for a lot Targeting super PACs large donors are being able to basi- Executive Vice President/Director of Strategic before they were ready to endorse of the Bush supporters and donors cally give the same amount of money Operations Chris Crain Executive Vice President/Director of Corporate Federal contribution limits cap as the hundreds of Michigan individ- Operations KC Crain individual donations to candidate uals who are giving to the candidate Vice President/Production & Manufacturing Dave Kamis INDEX TO COMPANIES committees at $2,700 per election. committees, who face contribution Chief Financial Officer Thomas Stevens These companies have significant mention in this week’s Crain’s Detroit Business: Contributions to independent ex- limits,” Mauger said. Chief Information Officer Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) Amherst Partners ...... 10 Horizon Global ...... 10 penditure political committees, “The spending is a lot more Mrs. G.D. Crain Jr. Chairman (1911-1996) Bank of Michigan...... 7 Huron Capital Partners ...... 10 often called super PACs, are unlim- clouded.” Editorial & Business Offices Blue Cross Blue Shield of Michigan...... 26 Level One Bancorp ...... 7 ited. In the charts (on Page 1 and this 1155 Gratiot Ave., Detroit MI 48207-2732; BorgWarner ...... 13 Michigan Campaign Finance Network ...... 1 (313) 446-6000 A recent analysis of FEC cam- page), Crain’s searched FEC Cable address: TWX 248-221-5122 AUTNEW DET Cascade Partners ...... 9 Michigan Department of Transportation ...... 3 paign finance records by the Michi- records to find out who some of CRAIN’S DETROITBUSINESS ISSN # 0882-1992 is pub- Crain’s Detroit Business ...... 8 The Mondrian ...... 3 lished weekly,except fora special issue the third weekof Detroit Medical Center ...... 3 Quarton Partners...... 10 gan Campaign Finance Network Detroit’s and Michigan’s business November,and no issue the third weekofDecemberby DTE Energy Foundation...... 26 Queen Lillian Development...... 3 shows Michigan donors gave and government leaders are back- Crain Communications Inc.at 1155 Gratiot Ave.,Detroit MI 48207-2732.Periodicals postage paid at Detroit,MI The Empowerment Plan...... 4 Rizvi Traverse Management...... 13 roughly $638,500 to candidate com- ing for president. The results reflect and additional mailing offices.POSTMASTER: Send ad- Flatout Holdings...... 12 Rockbridge Growth Equity ...... 10 mittees, while just five donors gave a sampling of $2,700 individual dress changes to CRAIN’S DETROITBUSINESS,Circula- Harvard Drug Group...... 11 Wayne State University...... 3, 26 tion Department,P.O.Box07925,Detroit,MI 48207-9732. $620,500 to super PACs supporting contributions. Ⅲ GST# 136760444.Printed in U.S.A. Honigman Miller Schwartz and Cohn...... 9 candidates. Lindsay VanHulle: (517) 657-2204 Entire contents copyright 2015 byCrain Communica- tions Inc.All rights reserved.Reproduction oruse ofedi- The latter suggests where some Twitter: @LindsayVanHulle torial content in anymannerwithout permission is strictly prohibited. 20160229-NEWS--0026-NAT-CCI-CD_-- 2/26/2016 4:00 PM Page 1

26 CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 DTE gives WSU $1.4M in grants; main focus is retention,grad rates MCMANUS Featuring: DISTINGUISHED BUSINESS LECTURE RON WADE Director of Marketing By Chad Halcom academic support through mentor- comeback of our economy, perhaps Intrapreneurship in Professional Detroit Tigers [email protected] ship, group projects, prerequisite moreso than any other local public Sports and Entertainment The nonprofit DTE Energy Founda- course enrollment and assistance university,” Kurmas said. tion has awarded nearly $1.4 million and even parking and meal vouch- Fotouhi said the university iden- TUESDAY, MARCH 22, 2016 in three new grants to Wayne State ers to help early students get more tified the need for early student as- University, most of it for a new pro- engaged with their studies. sistance based on graduation and 7 p.m. gram to improve retention and Eos gets its name from the Greek retention issues facing the universi- Madonna University Kresge Hall early graduation rates for new stu- goddess of the dawn — sister to He- ty as a whole. 36600 Schoolcraft Road • Livonia, MI dents in the College of Engineering. lios, used in other engineering pro- An additional $100,000 founda- Some $1.2 million of foundation gram names and the college’s fund tion grant from DTE is going to the Lecture is open to the public at no charge funding will go to the pilot DTE En- for student success. summer enrichment program of Seating is limited ergy Foundation Eos Program for President and COO Steven Kur- WSU’s Center for Latino/a and Latin R.S.V.P. to Lori by March 17 Student Success, launched last fall mas of Detroit-based DTE Energy American Studies, to help incoming 734-432-5589 or [email protected] as an academic and financial assis- and engineering school Dean Far- first-generation college students tance program for first- and sec- shad Fotouhi both said the universi- transition to university academics; INSPIRING ENTREPRENEURS SINCE 1989 Mike Il- Presented by the School of Business ond-year engineering students. ty approached DTE for assistance as and $48,000 more goes to the itch School of Business madonna.edu Eos Program recruits up to 60 part of its capital campaign. for scholarship new undergrads per year and offers “It’s important because Wayne assistance with tuition. Ⅲ State graduates also tend to stay in Chad Halcom: (313) 446-6796 Michigan and contribute to the Twitter: @chadhalcom Report: Blues lag others nationally

By Jay Greene said health insurers tend to post [email protected] worse financials during the last Blue Cross Blue Shield of Michigan quarter of the year because patient lagged behind fellow Blues plans care expenses usually accumulate in other states in a collective earn- after deductibles are met earlier. ings decline. “It is somewhat hard to over- Blue Cross Blue Shield of Michi- come three quarters with one quar- gan posted 5.2 percent higher rev- ter, especially the last one in the enue to $8.39 billion during the first year because claims need to be nine months of 2015, but also post- paid,” said Rouck. Acquisitions ed losses of $230 million during Fitch said 23 of the 35 Blues plans those three quarters, a 158 percent reported a collective $1.9 billion de- decline from the same nine-month cline in earnings for the first nine States period in 2014, according to Chica- months of 2015, and 16 reported go-based Fitch Ratings Inc. net losses. Officials for Detroit-based Blue The biggest contributor to the Canadian provinces Cross told Crain’s they plan to release decline in earnings was Blue Cross full-year financials on Tuesday. They of Michigan with a $622 million dif- had no comment on the Fitch credit ference in profits to losses, followed report, which concluded that the na- by Chicago-based Health Care Service tion’s 35 Blues fared more poorly than Corp. ($442 million) and Pittsburgh- their for-profit competitors, includ- based Highmark Group ($266 million). ing United Healthcare and Aetna Inc. Michigan Blue Cross officials On whether health insurers have told Crain’s in the past that use might have rebounded in the last of services was higher than expect- three months of the fiscal year, ed both in the commercial and Mark Rouck, Fitch senior director, Medicaid market. Ⅲ

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CRAIN’S DETROIT BUSINESS // FEBRUARY 29, 2016 27 ON THE WEB RUMBLINGS WEEK FEB. 20-26 Goodwill,Vanguard Detroit Digits OTHER NEWS Sara Jane Boyers’ Ⅲ Albert Kahn A numbers-focused look at last The -designed image of to open $2M career week’s headlines: building in Oak Park that once Lafayette Park WWJ transmitted broadcasts is was selected for center in North End expected to be converted into the cover of the 4 a restaurant by Curt Catallo, The number of casinos owned by 2015 Detroit oodwill Industries of Greater owner of the Union Joints Dan Gilbert’s Rock Gaming LLC to Homecoming Detroit and Vanguard Com- restaurant group. Catallo said be rebranded under the name program. G munity Development Corp. he expects the site at 12700 W. Jack, including Greektown-Hotel have secured $2 million in funding Eight Mile Road to take 18-24 Casino in Detroit. The change to renovate a building in Detroit’s months to open once con- represents the divorce of Gilbert’s North End neighborhood into a struction begins. entertainment business from Las career center offering job readi- Ⅲ Top executives at tech Postcard contest yields Vegas gaming giant Caesars ness, training and placement and companies in Southeast Entertainment Corp. financial literacy programs. The Michigan are very bullish, with North End Workforce Readiness Cen- 99 percent of them predicting ter will be housed in the 100,000- $180M an increase in revenue this vivid Detroit images square-foot building Vanguard The projected cost of redeveloping year, according to Automation ighteen photographers from but special additions like the VIP owns at 2777 E. Grand Blvd. Good- the failed Bloomfield Park site in Alley’s newly released annual the Detroit area and other sponsor reception, the NVGAG will will lease the building. Pontiac and Bloomfield Township. technology industry report. E national and international Health and Wellness Expo and the The 87-acre site, rebranded as Twenty-five percent expect a cities were named winners of a opening ceremony concert will be COMPANY NEWS Village at Bloomfield, is expected revenue increase of more than postcard contest Thursday for their paid for by sponsors. The concert to include 300 to 350 market-rate 15 percent. images of Detroit that tell short sto- will feature Motown Records’ Temp- Ⅲ Quicken Loans Inc. is trying residential units under the plan by Ⅲ Detroit Lions quarterback ries about life in the city. tations and a special guest to sing once more to transfer a federal Redico LLC. Matthew Stafford is raising funds The winners were recognized at the national anthem. lawsuit brought by the U.S. Depart- for charity by the Museum of Contemporary Art De- Sponsors include Ford Motor Co., ment of Justice in Washington, creating one- troit. American Legion, Disabled American 30,000 Veterans Masonic Association of D.C., back to its home base in De- The number of bricks to be of-a-kind The 20 color and black-and- , America Xerox troit after a federal judge previous- repurposed by Green Garage LLC paintings. white photographs will be printed and . Browning said ly denied a similar transfer request for a community park in Midtown. Stafford an- in Italy as postcards and distributed Ford’s contribution was between last month. Quicken filed an ap- The bricks come from the former nounced he in the U.S. Pavilion during the 2016 $10,000 and $20,000. Repreve peal Friday of a federal judge’s Dec. Marie Apartments building at 438 and — Architecture Biennale in Venice, Browning added that the city was 31 order dismissing its initial law- Selden St. in Detroit. a brand of which is May 28 to Nov. 27. not an easy sell to competitors suit against the government. Greensboro, Among the winners is Sara Jane when it was announced during last Ⅲ Dallas-based Comerica Bank Inc. Matt Stafford: N.C.-based Boyers, 70, a Santa Monica, Calif.- year’s games in Omaha, Neb. said it signed a deal with Detroit- Ecorse Road and I-275. Raising funds for Unifi Inc. that based fine art freelance photogra- “We were at the Omaha games based Olympia Entertainment to be- Ⅲ On Demand Mail Services LLC charity with art. produces fiber pher and writer. She took her shot this past summer talking to com- come the third major sponsor of will move to Pontiac from Auburn from recycled of Lafayette Park last March from a petitors, and there was hesitation the $627.5 million Detroit Red Wings Hills by June 1 and bring about materials — are raising money bedroom in the 1300 Lafayette East because of the news concerning the arena under construction. Terms 250 jobs in a $2 million invest- for S.A.Y. Detroit Play Center. The cooperative. city around the country,” Browning were not disclosed. Comerica be- ment. The company bundles and initiative is dubbed “Paint by She was in Detroit as part of a said. “We were able to convince comes sole sponsor of the arena’s presorts mail to offer postage dis- Number 9,” a reference to five-year project called Detroit: Defi- many people, as we just crossed Players Club premium area. counts to customers. Stafford’s jersey number. nition, which involves retracing the 900 registered participants two days Ⅲ Only weeks after announcing Ⅲ Ann Arbor-based Arotech Ⅲ Former Republican state steps of her father, who lived and ago. We are set to only allow 800 to his departure as president of Beau- Corp. will supply 70,000 recharge- Reps. Todd Courser and Cindy Gam- worked in the city. Boyers was born compete here, so we are cutting off mont Hospital-Royal Oak, Shane able batteries to the Israeli gov- rat were charged in district court in Detroit, but the family moved registration sooner than we Cerone will be- ernment later this year, after re- with felony misconduct in office when she was a year old. thought in the middle of March. come a partner ceiving a new $8.5 million after their extramarital affair re- The photo Boyers shot was also However, we are leaving some open in Van Conway’s product order payment from the sulted in the expulsion of one and the image selected by The Detroit slots for local folks.” new advisory country’s Ministry of Defense. resignation of the other. Homecoming for the cover of the of- All events will be open to the firm, Birming- Ⅲ Activist shareholders of ficial 2015 Homecoming program. public and held in a variety of loca- ham-based Van Nashville, Tenn.-based OBITUARIES Jon DeBoer, 27, a Royal Oak-based tions, including Cobo Center, Belle Conway and TeamHealth, stating the physician freelance photographer and graph- Isle, Wayne State University and Partners LLC. staffing firm has made “some mis- Ⅲ Raymond Weingartz, retired ic designer, won for his black-and- Thunderbowl Lanes in Allen Park. Also joining the steps in critical areas,” are asking president of Utica-based out- white shot of Detroit’s skyline at Browning said the local economic Shane Cerone: firm as a part- for three seats on its board of di- door power equipment retailer night. Ten of the 18 winners are De- impact is expected to be around Joins Van Conway ner is Billy Mar- rectors, one for Nancy Schlichting, Weingartz Supply Co. and whole- troit-area residents. $3.5 million. and Partners LLC. tinez, president outgoing CEO of Henry Ford Health saler Power Equipment Distributors, and CEO of System in Detroit. died Feb. 23. He was 78. Ⅲ Vets Golden Age Games Ⅲ The National Association of Troy-based One Lily Pad LLC. The to draw hundreds Women Business Owners Greater De- hires are the first for Conway, who Thin mints and margins troit Chapter has named its annual is suing his former firm, Birming- Detroit VA Healthcare System and Top 10 Michigan ham-based Conway MacKenzie Inc. the Veterans Canteen Service will Business Ⅲ Doctors Hospital of Michigan in bring competition and soul to the Women Awards Pontiac took one step closer to a fi- Motor City this summer during the and will honor nancial turnaround when a federal 30th annual National Veterans Gold- the winners at a bankruptcy judge approved a plan en Age Games July 10-14. ceremony for Sant Partners LLC, an Austin, The sports competition is ex- March 17. Win- Texas-based, family-owned private pected to attract more than 800 vet- ners included equity company, to take over man- erans age 55 and older from across Crain’s Group Mary Kramer: agement of the hospital. the U.S. who receive health care Publisher Mary Crain’s Group Ⅲ Van Buren Township is closer through a veteran affairs facility. Kramer (Greater publisher to financial pitfalls after a Wayne The goal is to promote health Good Award); County Circuit Court judge ruled COURTESY OF EVANS DISTRIBUTION SYSTEMS among aging veterans through Lisa Lunsford, against the township in a bond Sean Mueller, director of customer solutions for Melvindale-based Evans Distribu- therapeutic sports. founder and CEO, Global Strategic payment battle with its largest cor- tion Systems Inc.,spoke on Feb. 24 to Girl Scouts of Southeastern Michigan about “Therapeutic sports is supported Supply Solutions (Rainmaker porate resident, Corp. The improving their supply chain. Evans provides logistics to the Girl Scouts for its Digital by evidence to improve health as Award); and Jennifer O’Brien, suit alleged the auto supplier Cookie program, in which it sells cookies online as opposed to the traditional door-to- well as physical competition,” said founder and president, Accounting breached its contract over bonds door method (or parents pushing them on co-workers).The fulfillment, packaging Detroit VA Volunteer and Commu- Business Solutions (Pinnacle Award). tied to the construction of Vis- and the like are handled by Evans. Kellogg Co. bakes the cookies and UPS Inc. ships nity Relations Chief Bill Browning. For more information on the event, teon’s 263-acre campus near the online orders. The games are paid for by the VA, visit nawbogdc.org. Ⅲ DBpageAD_DBpageAD.qxd 2/23/2016 4:55 PM Page 1

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