Wynnchurch Capital Exits Midland Industries

Midland Industries, a Leading Value-Added Distributor and Manufacturer, Changes Hands

Kansas City-based Midland Industries has been sold by Wynnchurch Capital to Gemspring Capital Management. Wynnchurch Capital, a prominent middle-market private equity firm, had acquired Midland in 2018. The transaction marks a significant milestone for both companies, as well as an opportunity for continued growth and innovation.

Midland Industries specializes in the distribution and manufacturing of various industrial products, including fittings, valves, clamps, hoses, and more. With a diverse customer base spanning multiple industries, such as manufacturing, plumbing, utilities, HVAC, and fluid power, Midland has established itself as a trusted provider of mission-critical components.

Under Wynnchurch Capital's ownership, Midland experienced significant expansion and transformation. The company completed seven acquisitions, expanded its distribution facilities, optimized its e-commerce strategy, and invested in talent, systems, and automation. These initiatives were aimed at driving growth and enhancing the company's overall value proposition.

The acquisition by Gemspring Capital Management represents a new chapter for Midland Industries. It signifies the potential for continued development and market penetration under new ownership. By partnering with Gemspring, Midland can leverage their expertise and resources to further strengthen its position in the market.

Wynnchurch Capital expressed pride in Midland's achievements during their partnership. The industrial distribution platform built by Wynnchurch Capital capitalized on Midland's strong legacy of brands, diverse customer base, and unique e-commerce strategy. This collaboration allowed for accelerated growth and the discovery of untapped value within the market.

Chris O'Brien, Managing Partner at Wynnchurch Capital, acknowledged the positive impact of partnering with founder-led and family-owned businesses. By combining deep industry relationships with a dedicated team, Wynnchurch Capital successfully scaled the Midland platform, generating substantial value for investors.

Midland's CEO, John Gerber, expressed gratitude for Wynnchurch's support throughout the acquisition and integration process. By centralizing operations and executing a robust growth strategy, Midland enhanced its customer service capabilities and expanded its product offerings. These efforts have solidified Midland's reputation as a leading provider in the industry.

The transaction was facilitated by legal advisor Paul Hastings LLP, with Harris Williams and KeyBanc serving as financial advisors.

Looking ahead, Wynnchurch Capital remains actively engaged in seeking new investment opportunities. With their $2.277 billion Fund V, the company continues to identify potential investments that align with their growth strategy and offer significant value.

Wynnchurch Capital's recent investments include FloWorks, a distributor of critical flow control products, as well as Industrial Service Solutions, FCA, Mattress Warehouse, and Premier Franchise Management. These investments reflect Wynnchurch Capital's commitment to diversifying their portfolio across various industries.

About Midland Industries:

Headquartered in Kansas City, Missouri, Midland Industries is a value-added distributor and manufacturer of fittings, valves, clamps, hoses, and related products. Serving a wide range of industrial applications, Midland provides mission-critical products to distributors, manufacturers, and retailers. With over 250 employees and 11 facilities across the United States and Canada, Midland continues to strengthen its position as a trusted industry leader. For more information, please visit: www.midlandindustries.com.

About Wynnchurch Capital:

Based in Rosemont, Illinois, Wynnchurch Capital is a leading middle-market private equity investment firm. Founded in 1999, the company specializes in partnering with middle-market companies in the United States and Canada to drive substantial growth and profit improvement. Managing multiple private equity funds with $5.7 billion of regulatory assets under management, Wynnchurch Capital focuses on recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. For more information, please visit: www.wynnchurch.com.

About Gemspring Capital:

Gemspring Capital, headquartered in Westport, Connecticut, is a private equity firm with a capital under management of $3.4 billion. The company provides flexible capital solutions to middle-market companies, partnering with management teams to drive revenue growth, value creation, and sustainable competitive advantages. Gemspring's investment focus spans various sectors, including aerospace & defense, business services, consumer, financial and insurance services, healthcare services, industrial services, software and tech-enabled services, and specialty manufacturing. For more information, please visit: www.gemspring.com.