LEXINGTON, Ky. — Co-founders John Stewart, Lauren Mulholland and Scot Duncan today announced the formation of MiddleGround Capital, a new private equity firm that makes control investments in business-to-business industrial and specialty distribution companies in the North American lower middle market. With its headquarters in Lexington, Ky., and an office in New York City, the firm also announced the closure of its first transaction – the acquisition of Alco Manufacturing Corporation, a leading hydraulic connector manufacturer in the US with five facilities located throughout the Midwest.
“Our acquisition of Alco perfectly illustrates our broader investment thesis,” said Stewart. “We believe there is a tremendous opportunity to identify and invest in fundamentally good middle market businesses that can benefit from our operational experience. Alco’s unique product, critical position in the supply chain and robust customer and vendor relationships have positioned the company well in its market. We are excited to add Alco to our portfolio and look forward to working with the management team to drive incremental value.”
Based in Elyria, Ohio, Alco is a precision machiner of high tolerance hydraulic connectors, garden hose couplings and plumbing cartridges. The MiddleGround team will utilize its lean manufacturing expertise to help drive increased operational efficiency. The combination of these resources and Alco’s scale, installed machine base and in-house expertise will support the company in its pursuit of long-term growth targets.
Stewart, Mulholland and Duncan have been working together in private equity for the past seven years. In addition to their work in the private equity industry, the trio has over 30 years of combined experience working in operational roles at Toyota Motor Company, including leadership positions in engineering, maintenance, production and manufacturing.
For more information visit middlegroundcapital.com.