Buyout (LBO, MBO, MBI) • Manufacturing

MiddleGround Capital Acquires Megatech

On January 31, 2023, private equity firm MiddleGround Capital acquired manufacturer Megatech

Acquisition Context
  • This is MiddleGround Capital’s 6th transaction in the Manufacturing sector.
  • This is MiddleGround Capital’s 3rd transaction in Canada.
  • This is MiddleGround Capital’s 2nd transaction in Quebec.

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M&A Deal Summary

Date January 31, 2023
Target Megatech
Sector Manufacturing
Buyer(s) MiddleGround Capital
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) Stifel (Financial)

Target Company

Megatech

Québec, Quebec, Canada
Megatech is a digital manufacturing platform investment focused on computerized numerical control (“CNC”) machining of highly complex, highly-precise, low-volume engineered parts. Megatech was formed in 1992 and is based in Quebec, Quebec.
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Buyer Overview 1

Buyer

MiddleGround Capital

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2018
PE ASSETS 3.7B USD
Size Large
Type Sector Focused
DESCRIPTION

MiddleGround Capital is a middle-market private equity firm focused on acquiring North American companies valued up to $500 million. MiddleGround looks to commit $20 to $350 million per transaction and generally pursues investments in fundamentally good businesses that align with its operational expertise. Areas of interest include B2B industrial and specialty distribution. MiddleGround Capital was formed in 2018 and has offices in Lexington, Kentucky and Amsterdam, Netherlands.


Deal Context for Buyer #
Overall 16 of 23
Sector: Manufacturing 6 of 10
Type: Buyout (LBO, MBO, MBI) 8 of 11
State: Quebec 2 of 2
Country: Canada 3 of 3
Year: 2023 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-11-17 SixAxis

Andrews, South Carolina, United States

SixAxis is a North American provider of highly engineered, compliance-driven safe access and productivity solutions across diverse end markets. The Company goes to market via three primary brands SafeRack, ErectAStep, and Upside Innovations, and offers a broad range of differentiated solutions, including OSHA- & MSHA-compliant gangways, bulk loading platform systems, pre-engineered stairs and hand-railing components, and ADA-compliant ramps, stairs, and platforms. SixAxis is based in Andrews, South Carolina.

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FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-02-01 TPM

Hopkins, Minnesota, United States

TPM provides thermoplastic and thermoset molding, insert, 2-shot and over-molding, decorative, assembly, and test. With over 150 injection molding machine and secondary equipment including; vibration, ultrasonic, hot plate welding, leak decay, pressure, and flow testing, TPM can mold individual components or complex sub and final assemblies. TPM was founded in 1947 and is based in Hopkins, Minnesota

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