MPE Partners has acquired Mid-States Bolt & Screw, a distributor of fasteners and MRO products.
Mid-States products include a range of fasteners (hex caps, bolts, screws, and sockets); safety equipment; abrasives and cutting tools; welding equipment; chemicals and paints; material handling equipment; and electrical, lighting, plumbing, and janitorial equipment and supplies.
In addition to its distribution capabilities, Mid-States provides a range of services including kitting, vendor-managed inventory, vending machine management, and application engineering. Mid-States operates through its network of ten branches in Michigan (7), Ohio, Wisconsin and North Carolina; and it also operates numerous cribs that are co-located in customer facilities throughout the United States.
Mid-States was founded in 1973 by Herb Somers and is headquartered northwest of Detroit in Burton, Michigan.
“On behalf of my family, we are excited to partner with MPE,” said Scott Somers, the president of Mid-States. “Since my father’s founding of the business over 50 years ago, Mid-States has continued to drive success through our dedication to excellent customer service. We are excited to work with the MPE team to maintain this tradition while pursuing the company’s next phase of growth.”
“We are looking forward to partnering with the Somers family and the rest of the Mid-States team to accelerate the company’s growth through continued customer service and product availability, as well as organic and inorganic geographic expansion,” said Graham Schena, a partner at MPE.
AEA Private Debt Group, part of AEA Investors, was the Lead Arranger on a first lien credit facility in support MPE Partners’ buy of Mid-States. AEA Private Debt, with $19 billion of capital under management, makes senior debt, unitranche, junior debt, and equity co-investments in middle market companies across a broad range of industries and end markets. The group is part of AEA Investors, a New York City-headquartered private equity firm that was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co.
“We are proud to partner with the MPE and Mid-States teams to provide financing for this acquisition,” said John Smith, a partner at AEA Private Debt. “Mid-States is a leader in its market and a true partner to its customers, and we look forward to being a part of its next stage of growth.”
“We appreciate AEA Private Debt’s support of the transaction and their ability to provide a flexible financing structure enabling us to position the business for success. We look forward to growing our partnership with AEA Private Debt,” said Mr. Schena.
“The Somers family has built Mid-States into a world-class distributor over the past several decades, and has exciting growth planned,” said Nick Stender, a principal at MPE, “We look forward to helping Mid-States accelerate its growth while maintaining the culture and tradition of excellence that has made the company so successful to date.”
Cleveland and Boston-based MPE invests in lower middle-market companies that are valued at up to $250 million and have EBITDA of at least $5 million. Sectors of interest include high-value manufacturing and commercial and industrial services.
© 2023 Private Equity Professional | October 27, 2023
