Two well-known companies based in southeastern Wisconsin are expected to file initial public offerings in early 2010.

Robert Damron, co-portfolio manager of growth strategy with 1492 Capital Management LLC, a Milwaukee-based financial advisory firm, said the rebound in the financial markets that occurred last year has made public offerings viable for privately held firms.

“Companies that have had fairly strong financial performance in 2009 and have a solid outlook in 2010 should fare well in the IPO process,” he said. “With the relatively high market valuations, it is a pretty good time for IPOs and secondary offerings in the public markets.”

Waukesha-based RedPrairie, a software and technology provider to manufacturers, retailers and distributors, is expected to offer its IPO during the first quarter of 2010. In filings with the federal Securities Exchange Commission, RedPrairie states that it could raise up to $172.5 million with the offering. As many as 12.9 million shares of stock could be made available during its IPO, which it expects could sell at $14.63 per share.

The company also anticipates issuing more than 250,000 shares to its directors and executives, its filing says.

RedPrairie had about $194 million in revenues for the first nine months of 2009, according to its filings with the SEC, compared to $221 million in the same period of 2008. It had about $95 million in profit by the end of September of 2009, compared to $106.5 million during the first three quarters of 2008.

To view RedPrairie’s filings with the SEC, click http://edgar.sec.gov/Archives/edgar/data/1476750/000119312509242750/ds1.htm

Waukesha-based Generac Power Systems Inc. is also expected to offer shares of its company to the public markets during the first quarter.

According to documents filed with the SEC, Generac expects to raise up to $300 million in selling shares to the public markets. The company will be traded under the symbol GNRC on the New York Stock Exchange. Generac has not disclosed the number of shares it expects to sell or their price in its filings with the SEC.

To see Generac’s filings with the SEC, click http://edgar.sec.gov/Archives/edgar/data/1474735/000104746910000097/a2195620zs-1a.htm

Southeastern Wisconsin lost the headquarter of one of publicly traded company last year, when Metavante was acquired by Fidelity National Information Services Inc., which has merged Metavante into its operations.

Under terms of the merger agreement, FIS acquired all of the outstanding shares of Metavante common stock, with each Metavante shareholder receiving 1.35 shares of FIS common stock for each share of Metavante common stock held.

"The combined scale, complementary product capabilities and market breadth of these two great companies will drive significant competitive advantages in the increasingly dynamic marketplace," said William Foley II, chairman of Jacksonville, Fla.-based FIS. "This transaction will further strengthen FIS’ competitive position as a leading global provider of technology solutions and enable us to generate increased value for shareholders and customers."

Associated Bank launches stock offering to cover losses

Facing a fourth-quarter net loss of $180.6 million, Associated Banc-Corp has commenced an underwritten public offering of up to $400 million of its common stock.

The Green Bay-based parent company of Associated Bank said it intends to use the net proceeds of the offering to generate additional capital and other general corporate purposes.

The company’s quarterly net loss to common shareholders was $180.6 million, or $1.41 per common share, compared with net income of $13.6 million, or 11 cents per share, for the same period of 2008.

Associated Banc-Corp said it incurred fourth quarter credit-related charges of $405.1 million, including provision for loan losses of $394.8 million, with net charge offs of $233.8 million; an increase in reserve for unfunded commitments of $10.3 million; and a decrease in the quarterly cash dividend from 5 cents to 1 cent per share

Commenting on the company's results, Philip Flynn, newly appointed president and chief executive officer of Associated Banc-Corp., said, "Given the persistent challenging operating conditions in the banking industry, my priority during my first several weeks as CEO of Associated was to ensure that reserves and capital are at levels we believe are appropriate to manage through the downturn and to position Associated to take advantage of opportunities as they arise. We are working diligently to respond to these conditions by aggressively identifying and addressing current challenges and the impact on our loan portfolio. The dividend reduction and the significant addition to the allowance that we have announced today are important parts of addressing these priorities. Our board of directors and management team are committed to creating value for Associated's shareholders. We believe that getting out in front of our credit issues will put us on a path to accomplish this. I am confident that our strong market positions, business mix and management team will drive strong results as we emerge from the credit cycle."

Credit Suisse Securities (USA) LLC is the sole bookrunning manager for the stock offering. Robert W. Baird & Co. Inc., Citi, Keefe, Bruyette & Woods Inc., RBC Capital Markets Corp., Sandler O'Neill & Partners L.P. and UBS Securities LLC will serve as co-managers for the offering.

Amcore stock regains Nasdaq compliance

Amcore Financial, Inc. announced it has received notice from the Nasdaq Stock Market that it has regained compliance with the exchange’s minimum bid price rule.

Nasdaq previously had notified Amcore that its common stock failed to maintain a minimum bid price of $1 during 30 consecutive business days as required by Nasdaq rule. The company was given 180 days to regain compliance.

As of Jan. 4, the closing bid price of the company's common stock had been at $1 per share or greater for at least 10 consecutive business days, so Amcore is now back in full compliance with NASDAQ rules.

"We are pleased to be back in compliance with Nasdaq's bid rule," said William McManaman, Amcore chairman and chief executive officer. "It is encouraging to see investors reacting favorably to some recent announcements we have made to rebuild Amcore and improve our capital position."

Rockford, Ill.-based Amcore operates 66 bank locations in Illinois and Wisconsin.

The Amcore common stock is traded on Nasdaq under the symbol "AMFI.”

Marine Bank’s parent company completes bankruptcy reorganization

CIB Marine Bancshares Inc., the Pewaukee-based parent company of Marine Bank, has completed its financial restructuring and emerged last week from its pre-packaged Chapter 11 bankruptcy reorganization plan.

“We have successfully completed our reorganization, and we have emerged as a much stronger bank holding company,” said John Hickey Jr., chairman and chief executive officer of CIB Marine Bancshares. “We have significantly reduced our future interest obligations, improved our capital position and added approximately $106 million to our consolidated shareholder equity. The restructuring positions us to pursue our previously-announced capital plan free of the significant debt we incurred in conjunction with the trust preferred securities offerings. We are very pleased with the speed and efficiency with which our plan was approved and implemented. By working extensively with our trust preferred securities holders, we were able to submit a pre-approved plan to the court, which proved critical to our success in this process.”

In September 2009, CIB Marine Bancshares filed the pre-packaged plan of reorganization after having obtained the consent of the holding company’s trust preferred securities holders and the bankruptcy court confirmed the plan in October 2009. The plan’s effective date was December 30, 2009. Under the plan, the former trust preferred securities holders received shares of preferred stock in exchange for their trust preferred securities.

“The emergence from reorganization concludes a very long restructuring and recovery process for the company. We are pleased that we were able to endure the difficulties experienced by the holding company over the past several years and emerge as a stronger company. Special thanks goes to our loyal employees for their dedicated service through this process,” Hickey said.

CIB Marine Bancshares is the parent holding company of CIBM Bank, an Illinois-chartered commercial bank that operates as Central Illinois Bank in mid-state Illinois and as Marine Bank in the Milwaukee area, Indianapolis and Scottsdale.

Wisconsin bankers foresee murky 2010

Demand for business loans is weak throughout Wisconsin and is expected to stay that way through the first six months of the New Year, according to the latest Wisconsin Bank CEO Economic Conditions Survey.

On the bright side, bank leaders predict that interest rates will remain low during the first half of 2010 and fewer think the Wisconsin economy is still weakening compared with their responses six months ago.

Eighty-eight percent of the 118 bank CEOs who completed the biannual survey, conducted by the Wisconsin Bankers Association (WBA), rated current demand for business loans in the markets they serve as “fair” (40.8 percent) or “poor” (47.8 percent). Just 11 percent said demand is “good,” and no one completing the survey rated demand as “excellent.”

While 95.6 percent of the survey participants rate the current health of the overall Wisconsin economy as either “fair” (69.8 percent) or “poor” (27.8 percent), the number of bank CEOs who believe the economy is still weakening dropped from 70 percent six months ago to 59 percent today.

Just 4 percent rated the Wisconsin economy as “good” and none rated it as “excellent.”

The employment outlook continues to improve from a year ago when 54 percent of survey participants said local businesses would lay off workers. That percentage dropped to 38 percent in June and dropped again to 19 percent in the most recent survey.

When asked to predict business loan demand for the first six months of 2010, 69 percent said it would stay the same, 21 percent said demand would rise and 9.6 percent said it would drop.

The three biggest obstacles to business lending, bankers said, are low demand, regulatory pressure on banks and fewer qualified borrowers.

“Customers are not borrowing funds right now and (bank) regulators are being much more critical of our underwriting decisions than they have been in the past,” according to one banker who completed the survey. Another said, “It is very hard to lend when (borrower) cash flows are so hard to predict and profits are nearly non-existent.”

Bankers used words such as “overzealous,” “excessive” and “unnecessarily aggressive” to describe regulators in the survey.

Another banker responded, “The regulators are causing the contractions in the banking industry at a time when customers need their banks most.”

Wisconsin bankers are frustrated by the mixed messages they are receiving from different arms of government, according to Kurt Bauer, WBA president and chief executive officer. “On the one hand, you have elected officials scolding banks for not lending enough. On the other, you have regulators threatening costly penalties if banks make anything but the safest loans.”

Waste Management acquires City Wide Recycling in Milwaukee

Waste Management has acquired City Wide Recycling LLC in Milwaukee.

City Wide Recycling developed southeastern Wisconsin's largest and only automated processing facility for recyclable wastes collected at construction and demolition job sites. The plant at 10700 W. Brown Deer Road receives mixed loads of waste from job sites, sorting the materials by type and preparing them for shipment to manufacturers that can use the reclaimed plaster, wood, masonry, plumbing, wiring, soil, rock, cardboard, plastics and other materials. It began operating in October 2006.

"Wisconsin contractors are committed to recycling, and Waste Management is committed to helping our state build green," said John Kelly, Midwest group recycling director for Waste Management. "Promoting building site recycling is a natural extension of the services we provide to other transporters and our own customers."

City Wide founders John Hansen and Eric Konik will become consultants to Waste Management.

Poblocki Sign acquires North Carolina firm

Milwaukee-based Poblocki Sign Company has acquired Quality Sign Systems of Raleigh, N.C., and merged the two operations under the Poblocki banner.

Quality Sign Systems, formally affiliated with ASI-Modulex, is an architectural signage solution provider with locations across the southeast. Quality Sign Systems was established in 1989 and is known for its design-build expertise and consultative approach to developing high-quality architectural signage.

The acquisition will bring enhanced capabilities to Poblocki's offerings in health care, institutional, entertainment and corporate signage.

“The merger with Poblocki Sign Company represents an infusion of proven quality, innovation, and financial strength to take the successful platform we've built over the last 20 years to an even greater level of service and wider range of capabilities," said Don Bever, president of Quality Sign Systems. "Together, this merger will enable us to provide a consistent level of high-quality, consultative service anywhere in North America."

The acquisition further expands Poblocki’s business footprint. The company also opened a new location in Omaha, Neb., in mid-2009.

"Poblocki Sign Company is dedicated to producing innovative solutions to every signage challenge," said Dave Drury, president of Poblocki. "With the addition of Quality Sign Systems, we're extending that philosophy to a wider base of customers. That's why we're more confident than ever when we say, 'Challenge us.'"

Sign-A-Rama Downtown Milwaukee acquires competitor

Sign-A-Rama Downtown Milwaukee has purchased Grand Central Graphics Inc. and merged the company into Sign-A-Rama’s operations at 272 N. 12th St.

Grand Central Graphics was a large format digital print company specializing in high quality digital banners, displays, and tradeshow graphics. By purchasing its assets and hiring two of its long-term employes, Sign-A Rama Downtown is now able to offer new products and services to its customers, said Chris Nelesen, the company’s owner.

Terms of the acquisition were not disclosed. Grand Central Graphics’ founder and former owner, Robert Pape, was looking to retire and asked Nelesen if he wanted to buy the company.

“He had been in the sign business for close to 33 years and have known him for some time now,” Nelesen said. “He’s always been generous with his knowledge, tips and techniques and we were very friendly even though we were nearby competitors.”

The Equitable Bank has hired Craig Plazak as vice president of cash management and business development. Plazak worked formerly as vice president of commercial lending at Harris Bank. Prior to that, he worked at Johnson Bank as senior vice president /commercial product manager and at Fiserv as vice president -commercial banking consultant. His background will be an asset as Equitable moves toward offering more commercial banking and cash management products.

MMAC’s economic indicators show mixed results

Five of 20 indicators of business activity in southeastern Wisconsin registered improvement in November, according to a monthly report by the Metropolitan Milwaukee Association of Commerce.

November’s five improvements match the number of upward pointing indicators posted in October (after revision).

“The number of upward pointing indicators in the local economy has inched forward in 2009’s second half,” said Bret Mayborne, economic research director for the MMAC. “But the metro area’s overall economic performance is unlikely to post significant gains until the metro area’s employment situation improves.”

Some of the key indicators included:

• Metro Milwaukee’s seasonally unadjusted unemployment rate averaged 8.4 percent in November, a 3.1-percent increase over one year ago. November’s year-over-year increase is the smallest posted since January 2009. Milwaukee’s unemployment rate for November ranks lower than the 9.4 percent rate recorded nationally, but registered higher than Wisconsin’s 7.8 percent rate.
• Employment in the metro area declined at a 5.9-percent rate in November vs. year-ago levels, slightly smaller than the 6-percent fall recorded in October. Job levels averaged 801,000 in November, a loss of 50,500 jobs over the past 12 months.
• New unemployment compensation claims in the metro area fell for the first time in 21 months, down 4.5 percent from one year ago to 8,424.
• The educational and health services sector (up 0.8 percent) was the only major industry sector to post year-over-year employment gains in the region. Among sectors with job losses, the heaviest percentage decline was posted in the professional and business service sector, down 12.7 percent from year-ago levels.
• Passenger usage at Mitchell International Airport hit a record total of 725,048 people in November, 38-percent higher than a year ago.
• Local housing and real estate indicators showed improvement in November. Metro area existing home sales rose for the eighth consecutive month, up 186.5 percent in November to 1,894. Mortgages recorded in Milwaukee County rose 13.5 percent to 2,444, following October’s 2.2-percent increase.
• New car registrations fell 3.7 percent.
• The value of signed construction contracts, as reported by F.W. Dodge for October, was $78.8 million, down 51.8 percent from October 2008.

Koss hires Baker Tilly to replace Grant Thornton as auditor

Milwaukee-based Koss Corp. has appointed Baker Tilly Virchow Krause as its new independent auditor.

Baker Tilly replaces Grant Thornton LLP, which was dismissed by Koss on New Year's Eve.

The change was recommended by Koss Corp.'s audit committee and board of directors.

Koss Corp. is conducting an internal investigation of unauthorized financial transactions by Sujata Sachdeva, the company's former vice president of finance and secretary, during fiscal years 2005 through the present. Koss estimates that the company may have incurred more than $31 million in damages from alleged embezzlements.

Baker Tilly will audit the restatements of Koss Corp.'s financial statements for the applicable periods.

Baker Tilly is a member of Baker Tilly International, the world's eighth-largest accounting and business advisory network by combined fee income of its independent members.

MBBI names new board of directors

The Midwest Business Brokers & Intermediaries Wisconsin Chapter has appointed its new Wisconsin board of directors. MBBI is a non-profit organization dedicated to promoting professional and ethical excellence in the business broker and intermediary community.

Serving on the MBBI Wisconsin Chapter Board are:

• President – Scott Bushkie, CBI, M&AMI, President / CEO, Cornerstone Business Services, Green Bay
• Executive Vice President – Tom Kintis, President, CGK Investment Banking, Waukesha
• Secretary / Treasurer – Bill Hucovski, Owner, William D. Hucovski, CPA, Milwaukee
• Chair of Promotions – Ed Krajcir, Broker-Owner, Sunbelt Business Brokers, Brookfield
• Co-Chair of Events – Steve Peterson, Managing Director & Co-founder of Brass Ring Capital, Milwaukee
• Co-Chair of Events – John Kielich, CPA, CVA, Managing Director, Kolb+Co. Corporate Finance, Brookfield
• Chair of Sponsorships – Larry Berning, Business Development Officer SBA Lending, Wells Fargo, Milwaukee
• Chair of Social Events – Chad Richter, Attorney, O’Neil, Cannon, Hollman, DeJong S.C., Milwaukee
• Chair of Continuing Education Credits – Russ Plewa, CPA, Vice President, M&I Bank, Milwaukee

“It is great to see the dedication of our members in their willingness to take on leadership roles within the organization as we develop the Wisconsin chapter,” Bushkie said. “I am confident this board can take the Wisconsin Chapter to a new level and their active participation helps make MBBI a dynamic and valuable organization for those involved in aspects of mergers and acquisitions in Wisconsin.”  

M&I Institutional Trust Services named best-in-class by PLANSPONSOR

M&I Institutional Trust Services (M&I) has been ranked the best-in-class provider, based on the results of the 2009 Defined Contribution Survey conducted by PLANSPONSOR magazine, for the third year in a row.

M&I also received the highest overall ranking for participant and plan sponsor services in the micro, small, and mid-market market segments (companies with retirement plan assets ranging from less than $5 million to over $200 million) based on the results of the national client survey.

“We are once again honored to receive this recognition,” said James D. (Jamie) Cahn, managing director of M&I Institutional Trust Services. “No one can deny that the markets have been extremely challenging throughout the past year. Despite these factors, M&I continues to maintain strong client relationships and, for the eighth consecutive year, has achieved top ratings for client satisfaction.”

For more information on M&I’s 2009 Defined Contribution Survey results, please visit www.plansponsor.com and for M&I’s 2002-2008 results, see www.mitrust.com.

Associated Bank presents free monthly business knowledge webinars

Associated Bank has launched a “Business Knowledge Series” of webinars for business owners and leaders, featuring experts on best practices in business, financial industry developments, economic updates, and other current topics of interest.

“We created the Business Knowledge Series in response to growing demand for more information about unique issues facing businesses today,” said Alice Stephens, vice president and business marketing director for Associated Bank. “The webinars will provide business owners and decision makers with valuable information they can use every day as they manage their business.”

The complimentary webinars will be held on the second Tuesday of each month. Upcoming programs include “Economic and Investment Update” today and “Trends in Online Fraud” on Feb. 9. For more information about the Business Knowledge Series or to register for an upcoming webinar, visit www.associatedbank.com/businessknowledgeseries.

Economic Trends Breakfast to highlight opportunities of new year

BizTimes Milwaukee invites readers to get a jumpstart on 2010 by attending the annual Northern Trust Economic Trends Breakfast.

The breakfast, which will be presented by BizTimes Milwaukee on Friday, Jan. 22, at the Italian Community Center, will provide forecasts and insights about the year ahead in business.

The featured panelists for 2010 will be:

• Michael Knetter, Ph.D., the dean of the University of Wisconsin School of Business in Madison and a former U.S. presidential economist. Knetter will provide a macro-economic overview.
• U.S. Rep. Paul Ryan (R-Janesville) is invited to return to the breakfast, subject to the schedule of Congress. Ryan will provide the political outlook for 2010.
• Bob Arzbaecher, CEO of Actuant Corp., which is expanding and moving its global headquarters from Butler to a facility in Menomonee Falls. Actuant is a $1.2 billion diversified manufacturing company with facilities in 30 countries. Arzbaecher will discuss the outlook for global competition and manufacturing.
• Aaron Jagdfeld, CEO of Generac Power Systems Inc., which is growing in Waukesha and recently filed to become a publicly traded company. Generac manufactures portable residential power generators. Jagdfeld will provide the outlooks for manufacturing, innovation and energy.
• Andy Nunemaker, president of EMSystems LLC, a Milwaukee-based company that develops software systems for emergency rooms throughout the United States. EMSystems has acquired three other companies in the past 18 months and continues to grow. Nunemaker will discuss the outlooks for technology and health care.

For additional information or to register to attend, visit www.biztimes.com/trends.

The Wisconsin Bankers Association (WBA) will host a “Business Credit Availability Forum” on Thursday, Jan. 14 at the Monona Terrace, Madison. The event will be held in conjunction with the 2010 Wisconsin Economic Forecast Luncheon, also held at Monona Terrace.

The forum will outline the factors impacting credit availability to businesses in Wisconsin. UW-Madison Professor Jim Johannes will provide a background briefing on current lending trends. A panel discussion, including representatives from the banking industry, government and other sectors will follow. This year’s speakers are UW-Madison Business School Dean Michael Knetter and Federal Reserve Bank of Chicago Senior Economist Sam Kahan.

Banking

• Wisconsin Department of Financial Institutions 
• Federal Deposit Insurance Corp.
• Wisconsin Bankers Association 
• Community Bankers of Wisconsin
• Wisconsin Mortgage Bankers Association
• American Bankers Association
• Bankers Association for Finance and Trade
• Commercial Finance Association 
• Risk Management Association

Mergers & Acquisitions

• Association for Corporate Growth 
• International Business Brokers Association 
• Mergers.com

Wealth Management/Financial/Retirement Planning

• Financial Planning Association
• Financial Planning Association of Southern Wisconsin
• Investment Management Consultants Association
• National Association of Personal Financial Advisors (NAPFA)

Other 

• Society of Financial Service Providers
• Small Business Administration
• State public awareness campaign
• Wisconsin Credit Union League
• CFA Institute
• CFA Society of Milwaukee
• Wisconsin Angel Network