Southfield, MI – CFI USA is pleased to announce that it served as the exclusive financial advisor to Peterson American Corporation (“PAC” or the “Company”) in its sale to MiddleGround Capital (“MiddleGround”).
Headquartered in Southfield, Michigan with facilities throughout the United States, Canada, Mexico and the United Kingdom, PAC, through its Peterson Spring and PAC Racing brands, is a leading designer and manufacturer of precision formed metal parts for mission critical applications with operations spanning back to 1914.
MiddleGround Capital is a newly formed private equity firm that makes control equity investments in lower middle market North American companies in the B2B industrial and specialty distribution sectors. The firm 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.
Eric Peterson, shareholder of PAC, commented, “There aren’t many family owned businesses that are able to thrive over the course of five generations of family ownership, and we’re proud to have accomplished that feat. We are looking forward to the continued growth of the Peterson brand under MiddleGround’s ownership.”
John Stewart, co-founder of MiddleGround, remarked, “We are honored to continue the legacy that the Peterson family began over 100 years ago. Companies like Peterson have historically invested in North American manufacturing and have provided critical manufacturing jobs that have benefited the US economy and supported their local communities. Our investment in Peterson seeks to build upon the company’s strong foundation, and position the company for growth while ensuring manufacturing employment opportunities for generations to come.”
CFI USA acted as exclusive investment banker to the shareholders of PAC, managing the entire transaction process. Peterson added, “We hired CFI USA several years ago to not only lead this transaction, but advise our board and management as we prepared to exit the business. We observed CFI USA’s knowledge of our business, management of the process, and transaction experience firsthand, and we value their contributions to this successful transaction.”
The transaction closed in April 2019.
Valuation services to
to facilitate its domestic expansion strategy roll-out and business optimization
has undergone a refinancing of its working capital debt portfolio