In 10 short months, Innovest Global Inc., of Chester Township, has taken four well established Geauga County companies under its umbrella and grown its value to $25 million, said Damon Mintz, Innovest president.
In 10 short months, Innovest Global Inc., of Chester Township, has taken four well established Geauga County companies under its umbrella and grown its value to $25 million, said Damon Mintz, Innovest president.
Now the only publically-traded company in the county, Innovest took over the 30,000-square-foot office building at 8834 Mayfield Road and is gradually moving its acquired businesses under that roof, Mintz said.
The building was occupied by Fairmount-Santrol until it merged with Unimin and formed Covia Corporation, with headquarters in Independence, Ohio.
Mintz said the Innovest management team, including CEO Dan Martin, a Geauga County native, wanted to keep the corporation local, so when the commodious building in Chester became available, they leased it very quickly.
With plans to continue acquiring local companies, Innovest leaders expect to make good use of the main building and the smaller facility on 37 acres, he said.
So far, Innovest has persuaded Shepherd Energy Solutions, H.P. Technologies, Chagrin Safety Supply Inc. and Contact Source Solutions to join the family of businesses, said Derek McCarthy, vice president of marketing and communications.
“We are publically traded. That gives us the leverage necessary to capitalize and go after acquisitions,” he said.
Innovest can sell stock to raise funds it can use to buy and support businesses that compliment each other, Mintz said.
“That’s very, very useful as a resource,” McCarthy added. “Our shareholders know our goal is to add more value.”
Martin, who owned Newbury Pharmacy for 35 years, which was operated by his brother and sister-in-law, Bob and Colleen Martin, has a career in finance and always wanted to expand into acquisition and the stock market, Mintz said.
In 2016, he found a company that was dormant, but still technically on the exchange. Martin did all the filings and restructured the business with a board of directors and the ability to sell stock, making his first acquisition of SES late in 2017.
Since word has gotten around Innovest is shopping for more member companies, McCarthy said there are plenty of interested parties.
“Every single day, I have inquiries on how people can submit their company,” he said.
Each company is chosen on how successfully it will be able to mesh with the rest and benefit the whole.
“There are some great companies for sale, but the best companies our there are not for sale. We want companies that fit us really well. Not one company we have acquired has been for sale,” Mintz said, adding those that Innovest pursues are enthusiastic.
“They don’t look at it as selling their business. As part of a family of companies they are going to be better, not out,” he said.
With more than 25 deals “in the pipeline,” Mintz said there are enough to choose from to keep Innovest growing.
Often the company owner will be amazed at the offering, surprised Innovest offered so much. Mintz said the formula for an offering depends on where the business will be in the future with the support of Innovest and through collaborating with the other businesses under its umbrella.
Innovest has also opened a biotech and health division, occupied for now by StemVax Biopharmaceuticals of Pasadena, Calif.
Dwain Morris-Irvin leads all the company’s basic science and clinical research projects and has led investigations in the role of adaptive immunity in Parkinson’s disease, according to the StemVax website. He also developed two patents in the area of immunotherapy for brain tumor patients, specifically Glioblastoma Multiforme.
His research team focused on molecular mechanisms that impart therapeutic resistance in cancer cells, including cancer stem cells. They utilized these data to develop novel immunotherapies for brain tumor patients.
Websites from the four regional companies and Innovest describe them as follows. They are primarily service- or distribution-based companies, McCarthy said.
Shepherd Energy of Bainbridge Township is dedicated to constantly monitoring the energy markets for its customers.
H.P. Technologies, Inc., based in Cleveland, provides competitive electricity and natural gas purchase programs for residential and commercial consumers.
Chagrin Safety Supply, Inc., is the leading supplier of personal protection equipment and apparel for the medical, dental, industrial and construction industries.
Contact Source Solutions offers inbound and outbound call services.
McCarthy said many CSS employees work from their homes, but about 20 will be working from the Chester office in the future.
“We’ve had an outpouring of support and enthusiasm from local leaders. They want us to stay in Geauga County,” McCarthy said.
Innovest is planning at open house at the Chester office from 5-7 p.m. Oct. 25, he said.
