MiddleGround Capital Completes Second Add-On for Its Alco Platform with Acquisition of Kaddis | Financial Buzz

MiddleGround Capital Completes Second Add-On for Its Alco Platform with Acquisition of Kaddis

MiddleGround Capital, an operationally-focused private equity firm that makes control investments in North American middle market B2B industrial and specialty distribution companies, is thrilled to announce the acquisition of Kaddis Manufacturing Corporation (“Kaddis”) through its portfolio company Alco Manufacturing Corporation (“Alco”). This transaction marks MiddleGround’s second add-on acquisition to the Alco platform since acquiring the company in July 2018. MiddleGround’s first add-on acquisition to Alco was Manth-Brownell, a precision machine parts manufacturer located in Kirkville, NY, in August 2020.

Kaddis is a manufacturer of precision machined components for the fluid system, industrial sensor, medical device, motor and automotive end markets, headquartered in Rochester, NY. The Company has a variety of different machining capabilities including Davenport/Acme screw machines, Tornos multi-spindle Swiss CNCs, Tsugami single spindle Swiss CNCs, Bechler Swiss machines and Escomatic Swiss machines.

“We are very pleased to add Kaddis into MiddleGround Capital’s existing Alco Manufacturing Corp platform with this acquisition. Kaddis’ specialty manufacturing capabilities further broaden and accelerate diversity across several important dimensions in our overall machining business, particularly around the precision machining of brass and aluminum materials”, said Alco CEO Matt Dietrich. “We are truly excited to employ the expanded capabilities of Alco to ultimately grow with and better serve our key customers and markets with valuable, cost effective products and services.”

Justin Steil, MiddleGround Managing Director, stated, “Alco has emerged as the buyer of choice for business owners seeking exits in this highly fragmented sector, and we’re confident that bringing Kaddis together with Alco enables the combined business to provide an even more robust offering to its customers.”

About Kaddis

Kaddis is a manufacturer of precision machined components for the fluid system, industrial sensor, medical device, motor and automotive end markets. The Company has a variety of different machining capabilities including Davenport/Acme screw machines, Tornos multi-spindle Swiss CNCs, Tsugami single spindle Swiss CNCs, Bechler Swiss machines and Escomatic Swiss machines. The company was founded in 1939 and based in Rochester, NY. For more information, please visit: https://kaddis.com/.

About Alco

Headquartered in Elyria, OH, Alco is a leading manufacturer of hydraulic connectors for industrial and consumer end markets in the US. Alco manufactures steel, aluminum and brass products, including hydraulic connectors, garden hose connectors, plumbing cartridges, natural gas fittings and quick connect devices, among others. Alco was founded in 1971 and has been a portfolio company of MiddleGround Capital since 2018. For more information, please visit: www.alco.com.

About MiddleGround Capital

MiddleGround Capital is a private equity firm based in Lexington, KY with over $2.0 billion in assets under management. MiddleGround makes control equity investments in lower middle market B2B industrial and specialty distribution businesses. MiddleGround works with its portfolio companies to create value through a hands-on operational approach and partners with its management teams to support long-term growth strategies. For more information, please visit: www.middlegroundcapital.com.

Contacts

Andrea Hurst

+1 212 883 3666

Andrea.hurst@moelisam.com

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