Argand Partners has acquired Midwest Can Company and its subsidiary Container Specialties (together Midwest Can) from GenNx360 Capital Partners.
Midwest Can is a manufacturer of portable fuel containers (PFCs), funnels, drain pans and spouts that are used to handle, store and dispense flammable liquids such as gas, diesel and kerosene. The company’s products are used by a wide customer base in the farm and fleet, lawn and garden, automotive aftermarket, hardware, retail gas, and convenience store sectors.
Midwest Can’s container specialties subsidiary manufactures blow-molded plastic containers used in the food, automotive, chemical, and agriculture industries. The company, led by CEO Jerry Burris, has more than 100 employees at its 200,000 square foot facility located near Chicago in Franklin Park, Illinois.
“Midwest Can has undergone substantial change over the last three years as we invested in the business and launched our FlameShield Safety System PFC products,” said Mr. Burris. “We are excited to partner with Argand during our next phase of growth as we continue to add more products to our lineup that will complement our industry-leading standard PFC offering.”
“We were attracted to Midwest Can’s leading market position within the portable fuel container market, and we were particularly impressed with the leadership they have shown in the industry with respect to safety and innovation,” said Heather Faust, a partner and managing director at Argand. “We look forward to partnering with the management team to continue to build Midwest Can’s position in both the portable fuel container and rigid plastic packaging markets.”
New York City-based Argand Partners was founded in 2015 by long-time ex-Castle Harlan colleagues Heather Faust, Howard Morgan, and Tariq Osman. Argand makes control investments in industrial manufacturers and service providers that have at least $20 million in EBITDA. The firm is named after the Argand lamp, a kind of oil lamp that was invented in 1780 by Aimé Argand. The lamp became popular because its light output was brighter than that of earlier lamps.
New York City-based GenNx360, which acquired Midwest Can in January 2017, invests from $25 million to $75 million in industrial and business services companies that have revenues from $75 million to $250 million and EBITDA from $8 million to $25 million.
The acquisition of Midwest Can was backed by a credit facility provided by Benefit Street Partners, a New York City-based subsidiary of asset manager Franklin Templeton.
Piper Jaffray & Co. (now Piper Sandler Companies (NYSE: PIPR) as of January 1, 2020) was the financial advisor to Midwest Can on this transaction.
© 2020 Private Equity Professional | March 12, 2020
