GRAND RAPIDS — Grand Rapids-based Bridge Street Capital Partners LLC, in partnership with management, has acquired Jacob Ash Co. Jacob Ash designs, sources, merchandises and distributes specialty seasonal winter apparel, selling primarily to leading national retailers including mass merchants, department stores, and sporting goods stores. Its products are predominantly private label, although Jacob Ash utilizes its own brands in certain product categories. The company is over 70 years old and was in its third generation of family ownership at the time of the transaction. Current management, along with all existing employees, will continue to operate the business on a day-to-day basis.

“It was really in our minds a perfect situation where we were really investing in a company that had already demonstrated nice growth and had a very high-quality management team. Over the last seven years that it had been running this company, the management team has demonstrated the ability to run it successfully and to grow it,” Bridge Street Capital Managing Director John J. Meilner told MiBiz.

Bridge Street Capital is a newly formed private equity fund that is based in Grand Rapids. It is investing in middle market companies throughout the Midwest. Bridge Street Capital will primarily invest in profitable growth companies that face a transition of ownership or are looking for growth capital, with revenues ranging from $5-$50 million. Bridge Street Capital seeks to partner with management teams in a broad range of industries, including industrial manufacturing, distribution and logistics, consumer products, health care and business services.

Meilner also said that in partnership with the existing management team Bridge Street Capital Partners LLC would attempt to growth the company even more aggressively. “At the end of the day it is all about really believing that the management team we have in place is one that can execute a growth business plan.”

During two presentations to business groups in Grand Rapids, Meilner detailed criteria that Bridge Street Capital would look at before making its first acquisition. He said that the company should be profitable, successful and cash flow positive with a successful management team in place. Bridge Street also wants its potential acquisitions to have the ability to grow organically as opposed to through mergers and acquisitions. And he said it should be located in the Great Lakes states. Jacob Ash meets off of those benchmarks, although final criteria is something of a stretch. The company is located just outside of Pittsburgh. Jacob Ash also met another criteria — the family had decided that the ownership of the company should be transitioned to someone else.