MiddleGround Capital Completes First Add-On for its Megatech Platform with Acquisition of Advantage Metal Products
Lexington, KY, April 25, 2023: MiddleGround Capital, an operationally focused private equity firm that makes control investments in North American middle market B2B industrial and specialty distribution companies, today announced it has acquired Advantage Metal Products (“AMP” or the “Company”), a provider of high-precision metal products, as an add-on for its Megatech platform
The transaction marks the first strategic addition for Megatech since MiddleGround acquired the business in January earlier this year. Headquartered in Québec City, Québec, Megatech is a new advanced manufacturing platform investment focused on highly complex and precise, prototyping and low-volume production parts.
Founded in 1988 and based in Livermore, CA, Advantage Metal Products provides precision sheet metal fabrication, CNC machining, and other value-added services including assembly, automated powder coating, and batch coating. AMP focuses on high-complexity products with low production volumes for customers located in attractive, high-growth markets across North America.
“AMP is a logical and complementary first addition to our growing platform as we continue to scale and diversify our metal production capabilities,” said Jean Blanchet, CEO of Megatech. “We’re excited to collaborate with the AMP team as we further extend our technology offerings to customers seeking both fabrication and CNC machining services.”
“Since the inception of our firm in the late 1980s, we’ve been recognized as a leader in the precision metal and machining industry with a strong end-to-end suit of production capabilities and ability to deliver tailored complex solutions,” said Mike Segundo and Phil Segundo, Co-Founders of AMP serving as CEO and Vice President of Sales, respectively. “Our success has been driven by our team of talented and certified employees. We believe MiddleGround’s operational expertise and their support of our core values will make them a great partner in our next phase of growth.”
AMP has an established 30+ year track record serving customers located in high growth markets given its presence in the Silicon Valley area. The Company focuses on the homeland security, semiconductor, medical, robotics, and aerospace & defense sectors.
“With a proven track record growing both new and existing customers, we’re very excited to collaborate with the AMP team as we develop and serve future demand needs in high growth industries with attractive underlying tailwinds,” said Marty Sjoquist, Director, Investment Team at MiddleGround. “The addition of AMP’s product offerings to the existing Megatech platform allows us to introduce complementary precision sheet metal fabrication offerings as well as expand our geographical reach to technologically-advanced customers with complex production needs.”
Founded in Quebec City in 1992, Megatech is a leader in the machining industry, distinguishing itself from its competitors with exceptional quality and precision. Success is attributable to the Company’s employees, equipment, processes, and engineering capability along with a superb MRP system. Supported by the latest technology and by a team of trusted partners and subcontractors, Megatech’s mission is to be the best machining shop in Canada, specialized in high precision and complex parts. For more information, please visit: https://www.megatechaq.com/en/home/.
About Advantage Metal Products
Advantage Metal Products is a full-service machine shop specializing in precision sheet metal fabrication, CNC machining, and other value-added services including assembly, automated powder coating, and batch coating. The company is headquartered in Livermore, CA. For more information, please visit: https://advantagemetal.com/.
About MiddleGround Capital
MiddleGround Capital is a private equity firm based in Lexington, KY with over $3.3 billion of Assets Under Management. MiddleGround makes control equity investments in middle market B2B industrial and specialty distribution businesses. 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. For more information, please visit: https://middleground.com/.