MiddleGround Capital Adds to EDSCO Fasteners with Acquisition of Attala Steel Industries
Lexington, KY. – January 11, 2021: MiddleGround Capital, an operationally focused private equity firm that makes control investments in North American middle market B2B industrial and specialty distribution companies, is excited to announce the acquisition of Attala Steel Industries (“Attala”). Attala marks MiddleGround’s second investment in industrial businesses serving the power and transmission industry. In January 2020, MiddleGround acquired EDSCO Fasteners (“EDSCO”), a leading manufacturer and distributor of foundation anchor bolt cages for power transmission and distribution lines. The acquisition of Attala represents MiddleGround’s sixth acquisition of 2020 and tenth deal in MiddleGround Fund I, LP.
Attala is a manufacturer of steel foundation products for utility-scale solar power infrastructure. Attala is a vertically integrated player dedicated to the solar market with a structural steel mill in Mississippi and both fabrication operations and internal galvanizing capabilities in Mississippi and Texas, making the company a strong and reliable partner to its customers.
MiddleGround Founding Partner Lauren Mulholland commented, “Attala has done an excellent job establishing itself as a market leader by offering a best-in-class product, quality and service to its well-established customers across the solar market. As solar installations continue to grow, driven by attractive economics and both state and corporate renewable targets, Attala is well-positioned to provide steel foundation products to support the expansion, upgrades and modernization of utility-backed infrastructure installations. We look forward to supporting the company through its next phase of growth.”
John Stewart, MiddleGround Founding Partner, stated, “We are excited with the opportunity to invest in the power generation and transmission space. Through our research we have developed a specific thesis to make investments in companies that supply industrial products to mission-critical infrastructure projects. These projects support the strengthening of our existing power grid, which has been determined by executive order of the President of the United States to be a national priority. The United States power generation and distribution infrastructure is aged and in critical need of investment for repairs and upgrades. In addition, new green technologies are now gaining momentum and the race to generate clean power, supported by federal, state and local governments, is an exciting area to invest. Additionally, these investments are aligned with our broader ESG and sustainability initiatives.”
“Over time, we expect to integrate Attala and EDSCO into one company supplying the needs for steel foundational products for power generation, transmission and distribution markets” added MiddleGround Founding Partner Scot Duncan. “Both EDSCO and Attala have strong management teams in place that will continue managing the businesses under a common capital structure. A few months ago, we hired Kevin Heskett to be the CEO for EDSCO and expect Kevin will be the CEO for the combined business. In addition, we look forward to working alongside Attala’s founder, Billy Atwood, who continues to be an investor in the Company and will serve on the Company’s Board of Directors. Moving forward, our employees, customers and vendors can expect both businesses to continue without interruption.”
About Attala Steel Industries
Attala Steel Industries is a leading manufacturer and distributor of specialty steel foundation components for ground-mounted utility-scale solar PV installations. The Company is vertically integrated with milling, fabrication and galvanizing capabilities, enabling Attala to offer customers high quality, low cost materials with a rapid response time and on-time delivery. Attala’s product offering includes galvanized I-beam posts, mounting rack supports, galvanized H-pilings and driven pier structures. The Company is headquartered in Kosciusko, Mississippi with an additional facility in Hillsboro, Texas.
About EDSCO Fasteners
EDSCO Fasteners is a leading manufacturer and distributor of foundation anchor bolt cages for mission-critical infrastructure installations. The company primarily serves the T&D utility market with products that support transmission towers and also supplies customers in the telecommunications and transportation markets. EDSCO’s product offering includes anchor cages, 18J rebar bolts, smooth bar bolts, bolt hardware, plates, and other fabricated products. Headquartered in Denton, TX, EDSCO has additional facilities in UT, NC, TN, and IN. For further information, please visit: www.edsco.com
About MiddleGround Capital
MiddleGround Capital is a private equity firm that makes control equity investments in lower middle market North American companies in the B2B industrial and specialty distribution sectors. MiddleGround works with its portfolio companies to create value through a hands-on operational approach and partners with its management teams to support long-term growth strategies. MiddleGround is currently investing out of its first fund and is headquartered in Lexington, KY with an additional office in New York City. For further information, please visit: www.middlegroundcapital.com