Megatech, a portfolio company of MiddleGround Capital, has acquired Advantage Metal Products, a provider of high-precision metal products.
Megatech is a provider of precision machining services with capabilities that include rapid prototyping, surface treating, complex geometry sheet metal, design assistance, and inspection. The company’s customers are active in the aerospace, aeronautics, medical and military sectors. Megatech was founded in 1992 and is headquartered in Quebec City, Québec.
Advantage Metal Products (AMP) is a provider of sheet metal fabrication, CNC machining, and other services including assembly, automated powder coating, and batch coating. AMP specializes in high-complexity products with low production volumes in the homeland security, semiconductor, medical, robotics, aerospace and defense sectors. AMP, led by CEO Mike Segundo and Vice President of Sales Phil Segundo, was founded in 1988 and is headquartered in Livermore, California.
The acquisition of Advantage Metal Products (AMP) is the first add-on acquisition for Megatech since MiddleGround acquired the business in January 2023.
“AMP is a logical and complementary first addition to our growing platform as we continue to scale and diversify our metal production capabilities,” said Jean Blanchet, the CEO of Megatech. “We’re excited to collaborate with the AMP team as we further extend our technology offerings to customers seeking both fabrication and CNC machining services.”
“With a proven track record growing both new and existing customers, we’re very excited to collaborate with the AMP team as we develop and serve future demand needs in high-growth industries with attractive underlying tailwinds,” said Marty Sjoquist, a director at MiddleGround. “The addition of AMP’s product offerings to the existing Megatech platform allows us to introduce complementary precision sheet metal fabrication offerings as well as expand our geographical reach to technologically advanced customers with complex production needs.”
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 has over $3 billion of assets under management and was formed in May 2018 by former Monomoy Capital professionals John Stewart, Lauren Mulholland and Scot Duncan.
© 2023 Private Equity Professional | April 27, 2023
