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

LEXINGTON, Ky.-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.”

Original post can be found on Business Wire.

Media Contacts:

Andrea Hurst
212-883-3666
Andrea.hurst@moelisam.com

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