MiddleGround Adds to Alco

Alco Manufacturing, a portfolio company of MiddleGround Capital since July 2018, has acquired Manth-Brownell.

Manth-Brownell is a manufacturer of machined components used in the electrical connector, fluid power, industrial, appliance, safety, and aerospace end markets. The company machines brass, lead-free brass, steel, stainless steel, aluminum, copper, and plastic components.

The company’s manufacturing assets total more than 300 pieces of equipment including over 100 automatic screw machines and 50 CNC turning and milling machines. Manth-Brownell is headquartered near Syracuse in Kirkville, New York.

Alco manufactures steel, aluminum, and brass products, including hydraulic connectors, garden hose connectors, plumbing cartridges, natural gas fittings and quick connect devices. Alco was founded in 1971 and is headquartered near Cleveland in Elyria, Ohio.

“The integration of Manth-Brownell into our existing business portfolio and manufacturing footprint helps us further broaden and accelerate diversity in our overall machining capabilities, adds many new customers, and enhances our presence in important, complementary markets,” said Alco CEO Matt Dietrich. “We intend to leverage these expanded capabilities to better serve our customers and key markets with increasingly valuable, competitive, and cost-effective products and services.”

“We’re excited about bringing Manth-Brownell together with Alco,” said John Stewart, a partner at MiddleGround. “Manth-Brownell’s capabilities are impressive, and we are confident that the combined businesses will be able to provide an even more robust offering to their customers with the same excellent service and reliable delivery they have depended on for many decades.”

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 was formed in May 2018 by former Monomoy Capital professionals John Stewart, Lauren Mulholland, and Scot Duncan.

MiddleGround closed its first fund, MiddleGround Capital I LP, at its hard cap of $459.5 million in September 2019. The firm is headquartered in Lexington, Kentucky with an additional office in New York City.

The buy of Manth-Brownell by Alco is MiddleGround’s fourth acquisition of 2020 and follows the firm’s buy earlier this month of Dura Automotive Systems from Bardin Hill Investment Partners. Dura is headquartered near Detroit in Auburn Hills, Michigan.

Private Equity Professional | August 18, 2020

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