Wealthy Street Bakery, a fixture in the Grand Rapids community, was recently sold by Jim and Barb McClurg who founded the company and expanded the business to include locations in two near downtown neighborhoods. The business was acquired by employee and general manager, Andy Havemeier, with the backing of a local investor group. Varnum represented the McClurgs in the transaction.
The deal incorporated both equity and asset purchases. Terms were not disclosed.
Varnum assisted with negotiating the purchase agreements and closing the transaction on behalf of the McClurgs, including counsel and implementation of a tax-driven, pre-closing reorganization and a simultaneous 1031 exchange transaction. Varnum Partner Zach Meyer led the M&A team with the assistance of Alex Monahan, Pete Schmidt (real estate), Shawn Strand (tax) and Chris Baker (regulatory).
“We have trusted Varnum for many years to represent our business and are grateful for Zach Meyer and the team for the work they have done for us,” said Jim McClurg, who with his wife, Barb, founded and operated the two bakeries for over 22 years. “The transaction was complex, and we were reassured by Varnum’s counsel and felt confident having their expertise throughout the entire process.”