News

Press Release

MINNEAPOLIS, MINN.—August 5th, 2009—Tonka Equipment Company, a leading provider of customized water treatment systems for the municipal market, announced today that it has been acquired by Meriwether Capital, LLC, a New York-based investment firm. Terms of the sale were not disclosed.

Tonka’s existing leadership team, including President Tom Davis, will continue in their roles as operators of the business. Davis said, “Meriwether is an ideal fit for Tonka as we look to continue our path of growth and success in the water market. They will bring strength and value to our employees, our customers and to the clients that they serve. We look forward to a rewarding relationship with our new partners.”

Tonka Equipment Company manufactures customized drinking water treatment systems for small to mid-size municipalities. Since its inception over 50 years ago, Tonka has manufactured over 1,800 water treatment systems for municipalities across the United States and Puerto Rico and for overseas projects. Tonka provides a broad line of proprietary filtration systems that specialize in the removal of iron, manganese, radium, arsenic and many other water conditions.

Fred Friswold, former majority owner of Tonka, commented, “I’m pleased with both the outcome and the process, led by Lurie Besikof Lapidus Private Investment Banking, for finding a responsible owner. Meriwether will be a good steward of the Tonka tradition of excellence. The company is in good hands.”

Meriwether Capital, LLC is a New York-based investment firm that acquires profitable manufacturing, distribution and service companies for long-term investment. Bob Petit, President of Meriwether Capital stated, “We are very excited to partner with Tom Davis, his management team and all the employees at Tonka to continue the company's impressive growth. Meriwether looks to invest in middle market companies that are leaders in niche markets and where we can partner with strong management teams. Tonka fits that very well.”

Justin Besikof, President of Lurie Besikof Lapidus Private Investment Banking, LLC, initiated this transaction and acted as the exclusive financial advisor to Tonka Equipment Company and its group of shareholders. Besikof said, "It was a pleasure working with the Tonka shareholders and management, led by former CEO Fred Friswold, to find the perfect acquisition partner. Tonka’s extensive experience, proprietary technology and status in the water treatment industry attracted tremendous interest from strategic and financial buyers across the country.”

Legal counsel for the transaction included Robins Kaplan Miller & Ciresi, LLP advising Tonka and Satterlee Stephens Burke & Burke, LLP advising Meriwether.

About Lurie Besikof Lapidus Private Investment Banking, LLC

Lurie Besikof Lapidus Private Investment Banking, LLC is a mergers and acquisitions (M&A) advisory firm that specializes in the sale of lower middle market companies in niche manufacturing, value-added distribution, business services and specialty retail with $5 million to $100 million in annual revenue.

About Tonka Equipment Company

Tonka Equipment Company is a leading manufacturer of customized drinking water treatment systems for the municipal market. While it is focused primarily on the U.S. municipal drinking water market, Tonka’s water treatment expertise has also found effective applications in tertiary water filtration, environmental remediation and industrial process projects. Tonka provides a broad line of proprietary gravity, pressure and membrane filtration systems and equipment suitable for treatment of a wide variety of ground and surface waters.

About Meriwether Capital, LLC

Meriwether Capital, LLC is a New York-based investment firm founded in 1976 to acquire profitable lower middle-market manufacturing, distribution or service companies for long-term investment. The firm typically partners with the existing management team of its portfolio companies to build lasting value. Visit www.meriwethercapital.net for more information.

Contact

On behalf of Lurie Besikof Lapidus Private Investment Banking:
Justin Besikof
Lurie Besikof Lapidus Private Investment Banking, LLC
(612) 381-8879
jbesikof@lblco.com

On behalf of Tonka Equipment Company:
Tom Davis
Tonka Equipment Company, Inc.
(763) 559-2837
tdavis@tonkawater.com