Wynnchurch Capital has acquired Midland Metal Mfg. and will combine the business with its existing portfolio company Anderson Metals which it acquired in January 2018.
Midland Metal is a distributor of fittings, valves, clamps, and other products to companies active in the general industrial, hose, fluid power, plumbing, oil and gas, agriculture, water, truck and trailer, and power transmission markets. The company has more than 13,000 SKUs and has 140,000 sq. ft. of facilities in Kansas City, MO (headquarters), Kerman, CA (near Fresno); Atlanta, GA; and Houston, TX (www.midlandmetal.com).
Midland Metal was founded in 1980 and is led by CEO Vince Hodes. Mr. Hodes is investing alongside Wynnchurch and will become CEO of the combined company. “We are honored to partner with Wynnchurch and combine two successful, family-owned businesses. Wynnchurch has shown it’s committed to providing us with the resources necessary to better serve our customers and markets. This is an exciting opportunity and a new chapter for both Midland and Anderson,” said Mr. Hodes.
“We are excited to partner with Vince and his team to build on Midland’s legacy as a market leader. We share the same set of values Vince has instilled in the company’s culture and look forward to supporting the company’s growth plans,” said Greg Gleason, Managing Director at Wynnchurch.
Anderson Metals is a manufacturer and distributor of brass fittings, valves, pipe nipples, and other products that are used in the plumbing, hardware and general industrial end markets. The company supplies over 12,000 SKUs across a variety of categories including lead-free and leaded brass fittings, valves, pipe nipples, non-metallic fittings, and assorted parts and accessories. Last year, Anderson Metals processed more than 17,000 orders and has more than 27 million fittings in stock. The company was founded in 1947 and has an 84,000 sq. ft. distribution center and headquarters in Kansas City (www.andersonmetals.com).
“The combination of Midland and Anderson enhances our value proposition for customers with complementary products, new capabilities, and geographic reach,” said Chris O’Brien, Managing Partner at Wynnchurch. “We look forward to working with management to create a leading industrial distribution platform through organic growth initiatives and strategic acquisitions.”
Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion. Sectors of interest include aerospace & defense, automotive, building products, chemicals, food, logistics, energy services & equipment, environmental services, industrial products & services, metals & mining, and paper & packaging. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo), and Toronto (www.wynnchurch.com).
© 2018 Private Equity Professional | November 7, 2018
