CenterGate Capital has closed the sale of Mid-State Industrial Maintenance to ONCAP, the lower middle market private equity arm of Onex Corporation.
Mid-State provides on-site and off-site industrial maintenance, repair, and overhaul (MRO) services – such as mechanical repair, welding and fabrication, and precision machining – with a focus on high-risk, high-cost-of-failure operational environments. Customers of the company include operators in the utilities and power generation, phosphate mining, chemical processing, food and beverage, aggregates, and building products sectors.
Source: Mid-State Industrial Maintenance
Mid-State, led by CEO Shawn Toney, was founded in 1973 and is headquartered in Lakeland, Florida, with a 100,000-square-foot main facility and additional operations across the Southeast and Midwest U.S., including in Alabama and Tennessee.
“Working with Shawn Toney and the Mid-State team has been a pleasure. Over the course of our partnership, the company grew to be a differentiated industrial services platform,” said Tim Liu, a managing director at CenterGate. “The value creation and growth at Mid-State is a great example of CenterGate’s dedication to supporting management teams. We are confident that Mid-State will continue to build upon its track record and look forward to following the company’s future success.”
CenterGate acquired Mid-State in February 2019 and closed three add-on acquisitions during its ownership term with the buys of Ohio-based Elmco Industrial Services (December 2021); Ohio-based Mine Equipment & Design (January 2021); and Florida-based AZZ SMS (October 2020).
Source: Mid-State Industrial Maintenance
“I’m tremendously proud of the Mid-State team,” said Mr. Toney. “In partnership with CenterGate, we’ve dramatically grown revenue, added new service lines, expanded our geographic presence, and entered new end-markets, all while continuing to provide industry-leading safety and quality service to our customers. We are proud to have been partners with CenterGate in the growth and development of Mid-State.”
CenterGate, based in Austin, Texas, invests between $10 million and $75 million in equity in lower middle-market companies across North America, with EBITDA ranging from $5 million to $30 million. Its areas of focus include business services, manufacturing, and consumer sectors. In August 2024, CenterGate announced the final closing of CenterGate Capital Partners II LP with just over $375 million in capital, exceeding its target.
ONCAP is the mid-market private equity platform of Onex Corporation (TSX: ONEX) which makes private equity investments through the Onex Partners and the ONCAP families of funds. The firm makes both control and minority investments of $20 million to $250 million in North American-headquartered companies valued from $50 million to $500 million and with EBITDA of more than $5 million. Sectors of interest include consumer, industrials and services. ONCAP is based in Toronto with additional offices in New York, New Jersey, and London.
The ONCAP transaction team was led by Managing Director Stephen Marshall and Principal Jason Levy.
J.P. Morgan Securities was the financial advisor to Mid-State on this transaction.
CenterGate Capital has closed the sale of Mid-State Industrial Maintenance to ONCAP, the lower middle market private equity arm of Onex Corporation.
“Working with Shawn Toney and the Mid-State team has been a pleasure. Over the course of our partnership, the company grew to be a differentiated industrial services platform,” said Tim Liu, a managing director at CenterGate. “The value creation and growth at Mid-State is a great example of CenterGate’s dedication to supporting management teams. We are confident that Mid-State will continue to build upon its track record and look forward to following the company’s future success.”
