Mayville Engineering Company, Inc. (MEC) has entered into a definitive agreement to acquire Fond du Lac-based
Mid-States Aluminum Corp. (MSA) in a $96 million deal. The acquisition is expected to close in the third quarter of 2023.
MEC provides design, prototyping and manufacturing solutions for diverse markets. MSA is a vertically integrated manufacturer of custom aluminum extrusions and fabrications. MSA has served major original equipment manufacturers in the building and construction, recreational, medical, agriculture and transportation end markets for nearly 60 years. The company has two facilities, both in Fond du Lac, with a total of 325,000 square feet of manufacturing space.
“MSA is an established provider of aluminum extrusions, whose history of growth and innovation, attractive margin profile, deep customer relationships and diverse end-markets are highly complementary to our existing business,” said
Jag Reddy, president and chief executive officer of MEC. “Our acquisition of MSA will accelerate the expansion of MEC’s capabilities into lightweight materials fabrication, a designated strategic priority highlighted within our MBX value creation framework. MSA’s state-of-the-art design, engineering and manufacturing capabilities are highly complementary to our existing operations, providing a platform for higher-margin profitable growth within growing adjacent markets.”
For the full-year 2022, MSA recorded total revenue and adjusted EBITDA of approximately $86 million and $16 million. MEC intends to fund the transaction with an amendment to its existing credit agreement that increases the revolving credit facility size to $250 million.
In a Tuesday press release, Reddy said MEC will welcome all of MSA’s 250 employees. He did, however, say the acquisition would lead to ‘significant synergies’ over the next three years, consistent with the company’s focus on profitable growth.
“Our shared commitment to product innovation, performance excellence, customer-centric relationships and long-term value creation will help us further deliver on our MBX initiatives, while continuing to build a market-leading brand of scale,” said Reddy.
