Staple Street Capital has acquired the assets of Mid-States Supply Company, a distributor of industrial valves, pipe, automation products, fittings, steam specialty items and controls. The transaction was completed by a stalking horse bid through Section 363 of the US Bankruptcy Code.
Mid-States’ customers are active in the refining, oil and gas, industrial and commercial markets. In addition to its distribution operations, Mid-States provides valve actuation, custom fabrication and retrofitting, steam audits and management, and just-in-time and on-site inventory management programs. The company is based in Kansas City (www.midcoonline.com).
“We are excited to acquire Mid-States and provide the capital, operating and strategic resources to position the company for long term growth,” said Staple Street in a released statement. “We plan to conservatively capitalize the company and to invest in the Mid-States’ people, processes, and systems to grow the business and further differentiate its product offerings.”
Staple Street Capital makes control investments of $15 million to $75 million in companies with revenues of $50 million to $500 million. Industries of interest include business services; chemicals; communications, media and software; consumer and retail; distribution and logistics; energy; financial services; healthcare; and industrial and manufacturing. Staple Street is currently investing out of Staple Street Capital II, LP, which closed at its hard cap of $265 million in April 2015. The firm was co-founded by its managing directors Stephen Owens and Hootan Yaghoobzadeh and is based in New York (www.staplestreetcapital.com).
“Staple Street’s emphasis on providing value added resources, commitment to operational excellence and continuous improvement, and conservative approach to financial leverage makes them a great partner for Mid-States,” said Ben Hurst, Mid-States’ CEO. “These are the ingredients we need in a partner to grow and strengthen our position in the industry.”
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-21-16
