MILWAUKEE, WI--(Marketwired - Jan 9, 2017) - Generation Growth Capital Fund II, LP ("GGC"), a Milwaukee-based private equity firm that invests in lower middle market companies, today announced the sale of Midway Industrial Supply, Inc. ("MIS") to Ohio Transmission Corporation. Madeira Partners acted as the exclusive financial advisor to MIS on the transaction. Terms of the deal were not disclosed.
MIS is a distributor and systems integrator of fluid handling and spray finishing equipment, accessories, and consumables. Located in Mounds View, Minnesota, MIS services a wide variety of customers in industrial and manufacturing verticals including transportation, agricultural equipment, alternative energy, food/beverage, and building products.
GGC invested in MIS in January 2012 to support the ownership transition from the retiring owner of the company. During the approximate five years of GGC's ownership, MIS expanded both its sales and engineering teams and invested in the development of new leaders. Furthermore, MIS acquired Contrast Equipment Company in December 2014. Located in Kansas City, Missouri, Contrast provides manufacturers with customized fluid handling and finishing equipment. The investment ultimately realized an approximate 4.5x cash on cash return and an internal rate of return of 36% for GGC.
"The MIS investment represents a great example of how GGC builds talent and expands the capabilities of companies. We recognized an opportunity to expand our sales and engineering platforms and made the appropriate investments for the future of the company. We also expanded geographically with a nice add-on acquisition investment," said John Reinke, Managing Director of Generation Growth Capital, Inc.
"We enjoyed our partnership over the past five years with the MIS management team. They are excellent at what they do and, most importantly, are great people. We wish them the best as they continue to grow the business with their new owner," said Cory Nettles, Managing Director of Generation Growth Capital, Inc.
About Generation Growth Capital Fund II, LP
Generation Growth Capital Fund II, LP is a Milwaukee-based private equity firm focusing on investments in small businesses to support ownership transition and growth opportunities. By partnering with solid management teams, GGC adopts a proactive, collaborative approach that builds the businesses in which they invest.
Please visit www.generationgrowth.com for more information.