Milwaukee-based Generation Growth Capital Fund II LP announced this week it has sold Midway Industrial Supply Inc. to Ohio Transmission Corp.
Terms of the deal were not disclosed.
Mounds View, Minnesota-based Midway Industrial Supply is a distributor and systems integrator of fluid handling and spray finishing equipment, accessories and consumables. It serves markets including transportation, agricultural equipment, alternative energy, food and beverage and building products.
Generation Growth Capital first invested in the company in January 2012 as the previous owner retired from the company. Over the last five years, Midway expanded its sales and engineering teams and invested in new leadership. The company also acquired Missouri-based Contrast Equipment Co. in 2014. Contrast provides manufacturers with fluid handling and finishing equipment.
“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.
Generation Growth Capital said the Midway investment ultimately realized an approximate 4.5x cash on cash return and internal rate of return of 36 percent.
“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.
