Shiloh Industries, a Portfolio Company of MiddleGround Capital, Acquires Two US Automotive Facilities From Benteler
LEXINGTON, Ky.–(BUSINESS WIRE)–MiddleGround Capital, an operationally focused private equity firm that makes control investments in North American middle market B2B industrial and specialty distribution companies, is excited to announce the acquisition of two automotive facilities from Benteler International (“Benteler”) by its portfolio company Shiloh Industries (“Shiloh”). The acquisition is MiddleGround’s first add-on investment to Shiloh, which MiddleGround took private last year. This transaction also marks MiddleGround’s third investment in the automotive industry in the 13 months. Earlier this year, MiddleGround raised its Mobility Opportunity Fund, LP, a vehicle dedicated to investing behind disruptive trends transforming the automotive industry including vehicle lightweighting, electrification of the powertrain, autonomous driving and connected car technologies.
The Benteler facilities, located in Kalamazoo, Michigan and Goshen, Indiana, provide complementary hot forming and welding capabilities to Shiloh, as Shiloh has streamlined its operations to focus on lightweighting within its stamping business under MiddleGround’s ownership. In June 2021, certain assets of Shiloh’s U.S. BlankLight® business were sold to Worthington Industries (NYSE: WOR). The transaction included four facilities with locations in Bowling Green, Kentucky; Canton, Michigan; and two in Valley City, Ohio. Months earlier in April, Shiloh sold its CastLight® business to Aludyne.
MiddleGround Founding Partner John Stewart, who spent 18 years of his career at Toyota Motor Corporation, stated, “With more than 140 years of experience, Benteler is highly regarded in the automotive industry. We look forward to working with the teams at these facilities to further support our investment in the Dura / Shiloh platforms. By bringing hot stamping into the light weight structures group of the platform we continue to build out an offering of talent and assets that are critical for automotive OEMs as they look to remove weight out of the vehicle to meet fuel emission standards and to improve efficiency of electric vehicles.”
“The Goshen and Kalamazoo facilities are well capitalized and have open capacity to serve both current and future customers. MiddleGround has a long-term vision for the automotive industry and these facilities offer great opportunities for our Dura / Shiloh platforms to serve those needs,” Founding Partner Scot Duncan, who spent 13 years of his career at Toyota, added.
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