MiddleGround Sells Industrial Valve Platform to CD&R’s SunSource

MiddleGround Capital has completed the sale of its portfolio company Vytl Controls Group to SunSource, a portfolio company of Clayton, Dubilier & Rice.

Vytl designs, manufactures, distributes, and repairs valves, actuators, and instrumentation used to control the flow of liquids and gases in industrial systems.

Vytl operates through several branded business units, including Setpoint Integrated Solutions, which provides process control valves and related instrumentation; W&O Supply, which offers technical flow control products for maritime and military markets; AT Controls, a provider of process control accessories for broad industrial use; and Valsource, a provider of valve remanufacturing, testing, maintenance, and repair services that was carved out from Setpoint and branded as Valsource in early 2025.

Dallas-area-headquartered Vytl operates 32 branches across 11 states and is led by CEO Matt Bate.

MiddleGround acquired Vytl, then PVI Holdings, in July 2022 from family-owned Pon Holdings, a Netherlands-based supplier of measurement, regulation, and control instruments for the maritime and offshore industry. During its ownership term, MiddleGround pursued several operating initiatives that improved Vytl’s technology capabilities, strengthened its leadership and corporate functions, and standardized processes across its several business units.

In June 2024, Vytl closed the add-on acquisition of GMS Instruments, a Netherlands-based supplier of measurement, regulation, and control instruments used in maritime, offshore, and industrial applications. Post-closing, GMS was integrated into Vytl’s W&O Supply business unit.

“MiddleGround has been a valued partner to Vytl over the past several years,” said Mr. Bate. “Their deep operational expertise and strategic guidance have been instrumental in supporting our efforts to strengthen relationships across the process solutions value chain. We’re excited to build on this foundation by advancing our unified go-to-market strategy, broadening our product offerings, and exploring opportunities in additional end markets and geographies.”

“The Vytl team has effectively operated and integrated these three businesses from a leadership, systems, and organizational perspective to expand their collective capabilities,” said John Stewart, founding and managing partner at MiddleGround. “Achieving this outcome amid a complex economic environment reflects the strength of the management team and demonstrates the application of our hands-on, operationally focused investment approach.”

SunSource is an industrial distributor that supplies a portfolio of fluid power, fluid process, fluid conveyance, and industrial automation components and systems, including pumps, motors, valves, cylinders, and related hydraulic and pneumatic components. The company also provides engineering, design support, service, and repair services. SunSource customers include large-scale OEMs and end-user industrial manufacturers operating in the oil and gas, infrastructure, construction, agriculture, mining, and food and beverage sectors. SunSource, led by CEO David Sacher, is headquartered near Chicago in Addison, Illinois.

“Our investment in Vytl is a strong example of how we partner with management to unlock value across industrial platforms,” said Justin Steil, partner at MiddleGround. “Through strategic initiatives, commercial collaboration, and operational improvements, Vytl has implemented initiatives to enhance integration and competitiveness.”

MiddleGround makes control equity investments from $20 million to $350 million in North American- and European-based business-to-business companies in the industrial and specialty distribution sectors that have up to $1 billion in revenue and at least $10 million of EBITDA. The firm, headquartered in Lexington, Kentucky, with additional offices in New York City and Amsterdam, has over $4.1 billion of assets under management and was founded in 2018.

The sale of Vytl is MiddleGround’s fifth exit since its founding in 2018 and is the second exit from MiddleGround Partners II LP, which closed in 2021 with $800 million of capital.

Clayton, Dubilier & Rice, which acquired SunSource in December 2017, invests in European and United States-based businesses. Since its founding in 1978, the New York City-headquartered firm has invested more than $40 billion in over 100 companies across a range of industries including industrials, healthcare, business services, consumer, technology, and financial services.

Solomon Partners and Baird were the financial advisors to MiddleGround and Vytl Controls.