Midway Industrial Supply, a portfolio company of Generation Growth Capital, has acquired Contrast Equipment Company.
Contrast Equipment Company is a finishing equipment system integrator and provides in-house paint system design and full service integrated systems utilizing their distributed product lines which include Nordson, Graco, Finishing Brands, Exel-Kremlin and Kayco Spray Booth systems. The company was founded in 1923 and is based in Kansas City, MO (www.contrastequipment.com).
Midway Industrial Supply, acquired by Generation Growth in January 2012, is a distributor and systems integrator of fluid handling and spray finishing equipment, accessories and consumables. Midway serves a variety of customers in industrial and manufacturing verticals including: transportation, agricultural equipment, alternative energy, food and beverage and building products. The company distributes and integrates products from dozens of vendors, including: Graco, Binks, DeVilbiss, Ransburg, Nordson and Global Finishing Solutions. Midway Industrial Supply is based north of Minneapolis in Mounds View, MN (www.midwayis.com).
“Contrast’s reputation as a solutions-driven, liquid and powder coating system integrator, coupled with their excellent customer relationships, will enhance our company’s growth and allow us to expand into new markets,” said Patrick Hoolihan, President and CEO of Midway Industrial Supply.
Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).
Contrast Equipment will operate as a wholly-owned subsidiary of Midway under the name Contrast Equipment, Incorporated. Contrast’s employees and management team will continue to manage the operation while working with Midway in the integration of the two companies. Contrast will remain at its current Kansas City facility and Midway shall remain in its existing Mounds View, MN location.
Senior financing for the acquisition was provided by Anchor Bank.
2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14
