Lexington, Kentucky--(BUSINESS WIRE)--MiddleGround Capital, a private equity firm focused on operations, has made a controlling investment in a North American middle market B2B industrial and professional distribution company, and is pleased to announce Acquired Kaddis Manufacturing Corporation ("Kaddis") through its portfolio company Alco Manufacturing Corporation ("Alco"). This transaction marks MiddleGround's second additional acquisition of the Alco platform since it acquired the Alco platform in July 2018. MiddleGround's first additional acquisition of Alco was Manth-Brownell, a precision machine parts manufacturer located in Kirkville, New York, in August 2020.

Kaddis is a manufacturer of precision machined parts for fluid systems, industrial sensors, medical equipment, motors, and automotive end markets, headquartered in Rochester, New York. The company has a variety of different processing capabilities, including Davenport/Acme screw machines, Tornos multi-spindle Swiss CNC, Tsugami single-spindle Swiss CNC, Bechler Swiss machines and Escomatic Swiss machines.

“We are very pleased to add Kaddis to MiddleGround Capital’s existing Alco Manufacturing Corp platform through this acquisition. Kaddis’s specialized manufacturing capabilities have further expanded and accelerated the diversity of several important dimensions of our overall processing business, especially in Huang In terms of precision machining of copper and aluminum materials," Alco CEO Matt Dietrich said. "We are really happy to be able to leverage Alco's expansion capabilities and ultimately grow with our major customers and markets and better serve our major customers and markets through valuable and cost-effective products and services."

Justin Steil, Managing Director of MiddleGround, said: “Alco has become the preferred buyer for business owners seeking to exit this highly fragmented industry. We are confident that the merger of Kaddis and Alco will enable the combined business to provide a stronger business to customers. "

Kaddis is a manufacturer of precision machined parts for fluid systems, industrial sensors, medical equipment, motors, and automotive end markets. The company has a variety of different processing capabilities, including Davenport/Acme screw machines, Tornos multi-spindle Swiss CNC, Tsugami single-spindle Swiss CNC, Bechler Swiss machines and Escomatic Swiss machines. The company was founded in 1939 and is headquartered in Rochester, New York. For more information, please visit: https://kaddis.com/.

Headquartered in Elyria, Ohio, Alco is a leading manufacturer of hydraulic connectors for the US industrial and consumer end markets. Alco produces steel, aluminum and brass products, including hydraulic connectors, garden hose connectors, pipe barrels, natural gas fittings and quick connect devices. Founded in 1971, Alco has been a portfolio company of MiddleGround Capital since 2018. For more information, please visit: www.alco.com.

MiddleGround Capital is a private equity firm based in Lexington, Kentucky, with more than $2 billion in assets under management. MiddleGround makes a controlling equity investment in the B2B industrial and professional distribution business in the low-end market. MiddleGround cooperates with its portfolio companies to create value through practical operation methods and cooperates with its management team to support long-term growth strategies. For more information, please visit: www.middlegroundcapital.com.

Andreahurst 1 212 883 3666 Andrea.hurst@moelisam.com

MiddleGround Capital announced the acquisition of Kaddis Manufacturing Corporation through its portfolio company Alco Manufacturing Corporation.

Andreahurst 1 212 883 3666 Andrea.hurst@moelisam.com