News

Sale of Midway Industrial Supply

Lurie Besikof Lapidus Private Investment Banking Announces the Sale of Midway Industrial Supply to Generation Growth Capital

TRANSACTION
Midway Industrial Supply Co., Inc. has been acquired by Generation Growth Capital, Inc. with senior debt financing from Minnesota Bank & Trust and mezzanine financing from ExMarq Capital Partners. Terms of the transaction were not disclosed.

HIGHLIGHTS
For over 60 years, Midway has been a leading distributor and systems integrator of fluid handling and spray finishing equipment and supplies, selling products from Graco, ITW Binks/DeVilbiss/Ransburg, Nordson, Global Finishing Solutions and many other key vendor partners. MIS sells to a wide variety of manufacturers in the Upper Midwest, with a presence in Minnesota, Wisconsin, Illinois, Iowa, Nebraska and the Dakotas. The existing management team, including CEO Gregg Lien, will continue operating the business following the transaction.

Lien remarked, "Midway Industrial Supply is thrilled to partner with Generation Growth Capital to further fuel the success and growth of our business. With Generation's help, we look forward to expanding our markets while continuing to deliver the same great products and service our customers have come to depend on for decades."

Generation Growth Capital is a private equity firm that provides capital to lower middle market businesses to help support a broad range of growth opportunities. GGC is investing out of its second fund and currently has investments in six other portfolio companies across a variety of industries.

John Reinke, a Managing Director of Generation Growth, commented, "Midway Industrial Supply represents a model investment for GGC. Gregg Lien has developed a very strong operating model that can be used as a growth platform for future acquisitions. We very much look forward to working with Gregg and helping to drive the growth strategy of Midway."

Justin Besikof, President of Lurie Besikof Lapidus Private Investment Banking, acted as the exclusive financial advisor to Midway Industrial Supply. Besikof stated, "It was a great pleasure working with Midway and Generation towards a very successful transaction. Midway represents a strong investment opportunity in a fragmented industry that is ready for consolidation."

Legal counsel for the transaction included Fredrikson & Byron P.A. who advised Midway Industrial Supply and Godfrey & Kahn, S.C. who advised Generation Growth Capital.

ABOUT MIDWAY INDUSTRIAL SUPPLY
Midway Industrial Supply Co., Inc. is a St. Paul, Minnesota-based distributor and systems integrator of industrial fluid handling and spray finishing equipment and supplies, representing top manufacturers in all product categories. Midway operates across Minnesota, Wisconsin, Illinois, Iowa, Nebraska and the Dakotas. Please visit www.midwayis.com for more information.

ABOUT GENERATION GROWTH CAPITAL
Generation Growth Capital, Inc. is a Milwaukee-based private equity firm focusing on investments in lower middle market businesses to support growth opportunities. Generation now has investments in seven portfolio companies and is currently investing out of its second fund. Please visit www.generationgrowth.com for more information.

ABOUT LURIE BESIKOF LAPIDUS PRIVATE INVESTMENT BANKING
Lurie Besikof Lapidus Private Investment Banking, LLC is a mergers and acquisitions (M&A) advisory firm that specializes in the sale of middle market companies in niche manufacturing, value-added distribution, and business services. Please visit www.lblpib.com for more information.

For more information about this transaction, contact:

Justin Besikof
(612) 381-8879
jbesikof@lblco.com

Jake Fishman
(612) 381-8835
jfishman@lblco.com