MiddleGround Closes Third Add-On to Alco
Search

MiddleGround Closes Third Add-On to Alco

Elyria, Ohio-based Alco was founded in 1971 and has been a portfolio company of MiddleGround Capital since 2018

Teale manufactures of high-tolerance and high-volume machined parts used in the aerospace, appliances, building products, electronics, automotive, and medical end markets

SOURCE: Teale Machine Company

MiddleGround Capital has acquired machined parts manufacturer Teale Machine Company through its portfolio company Alco Manufacturing.

Teale is a manufacturer of high-tolerance and high-volume machined parts used in the aerospace, appliances, building products, electronics, automotive, and medical end markets. Teale’s machining capabilities include multi-spindle, centerless grinding, secondary processing, and assembly across various metal types, including stainless steel and aluminum. Teale was founded in 1943 and is headquartered in Rochester, New York.

The acquisition of Teale follows the acquisitions of Manth-Brownell, a New York-based manufacturer of precision machined components used in the electrical connector, fluid power, industrial, appliance, safety and aerospace end markets (August 2020); and Kaddis Manufacturing, a New York-based maker of machined components used in the fluid system, industrial sensor, medical device, motor and automotive end markets (November 2021).

Alco and MiddleGround continue to seek North America or Mexico-based makers of machined components with at least $1 million of EBITDA and greater than 10% gross margins that serve the aerospace & defense, medical, plumbing, consumer, industrial, and electrical sectors.

Alco is a manufacturer of steel, aluminum, and brass connectors used in industrial and consumer end markets. The company’s products include hydraulic connectors, garden hose connectors, plumbing cartridges, natural gas fittings, and other quick-connect devices. Elyria, Ohio-based Alco was founded in 1971 and has been a portfolio company of MiddleGround Capital since 2018.

“Teale marks another step toward furthering our strategy of expanding the Alco platform through smart, bolt-on acquisitions. Teale is a truly complementary, specialty machining business that adds new customers, further strengthens our growing New York footprint, and enhances diversity in our capabilities around brass, steel, and aluminum materials,” said Matt Dietrich, the CEO of Alco. “We are very focused on bringing new value to our customers by expanding our capabilities, and adding Teale enables us to offer a wider array of cost-effective, value-filled products and services.”

“We are thrilled to add Teale to Alco’s growing track record of attractive acquisitions, and we expect Alco – as the industry leader – to continue to take advantage of consolidation opportunities across this highly fragmented sector,” said Justin Steil, a managing director at MiddleGround.

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. Lexington, Kentucky-based MiddleGround was formed in May 2018 by former Monomoy Capital professionals John Stewart, Lauren Mulholland and Scot Duncan.

© 2022 Private Equity Professional | May 17, 2022

To search in site, type your keyword and hit enter