MiddleGround Closes Second Buy

MiddleGround Capital has acquired Peterson American Corporation (DBA Peterson Spring), a specialty spring manufacturer.

Peterson is a designer and manufacturer of highly engineered springs, wire forms, related components, and sub-assemblies. The company’s products are used in a range of applications in the automotive OEM, industrial, motorsport/racing, truck and trailer, heavy equipment, and consumer products sectors. Annual revenues for the company are approximately $135 million.

Peterson has a total of thirteen facilities with nine in the US, one in Canada, two in the UK, and one in Mexico. The company was founded in 1914 by August Peterson and is headquartered near Detroit in Southfield, MI (www.pspring.com).

“We are honored to continue the legacy that the Peterson family began over 100 years ago,” said John Stewart, co-founder and partner of MiddleGround. “Companies like Peterson have historically invested in North American manufacturing and have provided critical manufacturing jobs that have benefited the US economy and supported their local communities. Our investment in Peterson seeks to build upon the company’s strong foundation and position the company for growth while ensuring manufacturing employment opportunities for generations to come.”

MiddleGround was founded in 2018 by former Monomoy Capital professionals John Stewart, Lauren Mulholland and Scot Duncan. Mr. Stewart, Ms. Mulholland and Mr. Duncan have been working together in private equity for the past eight years. In addition to their work in the private equity industry, Mr. Stewart and Mr. Duncan have over 30 years of combined experience working in operational roles at Toyota Motor Company, including senior positions in engineering, maintenance, production and manufacturing.

The buy of Peterson Spring is the firm’s second transaction in its inaugural private equity fund which has closed on $212 million of capital and reportedly has a target of $450 million. Credit Suisse Securities (USA) is the firm’s placement agent. In July 2018, MiddleGround acquired Alco Manufacturing, a maker of steel, aluminum and brass hydraulic connectors, garden hose connectors, plumbing cartridges, and natural gas fittings used in a range of industrial and consumer applications. Alco’s annual revenues are approximately $100 million, and the company is headquartered in Elyria, OH with four additional facilities in Ohio, Michigan and Illinois (www.alco.com).

MiddleGround makes control equity investments from $25 million to $65 million in North American-based business-to-business companies in the industrial and specialty distribution sectors that have enterprise values of up to $200 million.  The firm is headquartered in Lexington, KY with an additional office in New York (www.middlegroundcapital.com).

© 2019 Private Equity Professional | April 23, 2019

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