Denton-based EDSCO Fasteners has been acquired by MiddleGround Capital, a private equity firm that makes control investments in middle market B2B industrial and specialty distribution companies in North America.
EDSCO is a manufacturer of mission-critical anchoring systems for power transmission poles and other large steel structure. According to a release, this was the fifth acquisition in Lexington, Kentucky-based MiddleGround’s inaugural fund and the fourth platform investment it has made in the past nine months.
NASHVILLE, TN – January 15, 2020 – LFM Capital, a private equity firm focused on lower middle market manufacturing and industrial services businesses, announced today the sale of EDSCO Fasteners, LLC (“EDSCO”) to MiddleGround Capital. Financial terms of the transaction were not disclosed.
EDSCO, headquartered in Denton, Texas, is a leading supplier of foundation anchoring systems for critical infrastructure installations such as power transmission poles and substation structures. The anchoring systems provided by EDSCO range from specialty fabricated bolts to highly engineered anchoring cages. EDSCO’s anchoring systems are predominantly embedded in concrete foundations and engineered to allow structures to be securely placed on top of the foundations.
Dan Shockley, Managing Director at LFM, said, “We are pleased to have been a part of EDSCO’s growth and success. This sale is the culmination of the management team’s successful efforts to execute a collaboratively developed strategic plan. We worked closely with the team to significantly transform the business through strategic acquisitions, growth initiatives, and select management team additions. We are confident that EDSCO will continue to thrive under the leadership of MiddleGround Capital.”
LFM acquired EDSCO in January 2017 and provided strategic guidance and resources to help transform the business. With LFM’s support, EDSCO completed two acquisitions that expanded EDSCO’s geographical footprint and product capabilities. LFM invested in a world class management team, including recruiting two alumni from MIT’s Leaders for Global Operations (“LGO”) program – with which LFM Capital is a partner company. Finally, LFM supported investments in business development and partnerships with key suppliers. The initiatives resulted in strong growth in both revenue and EDITDA and significantly expanded EDSCO’s path to new customers and new markets.
Richard Butler, President and CEO of EDSCO, commented, “We are gratified by how far EDSCO has come during our three-year partnership with LFM Capital. We deeply value LFM’s unwavering support of the management team as we pursued growth and operational excellence. We are excited to have MiddleGround as a partner in helping us to achieve our next set of goals.”
Cullen Johnson, Vice President of Operations of EDSCO, continued, “LFM’s support of our operational vision was critical in improving our technical capabilities. As a fellow LGO alum, it was exciting to partner with a firm that really understood the ins-and-outs of our operational challenges and opportunities.”
The EDSCO sale represents the first exit from LFM’s inaugural fund.
Houlihan Lokey acted as financial adviser to EDSCO. Bass, Berry & Sims served as counsel to EDSCO and Eversheds Sutherland served as counsel to MiddleGround.
About LFM Capital
LFM Capital is a private equity firm based in Nashville, Tennessee. The LFM team is led by experienced and successful Fortune 50 global executive managers and private equity professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks, and a successful track record in lower middle market investing. LFM targets lead or control investments in U.S.-based lower middle market manufacturing and industrial services companies with at least $3 million of EBITDA and enterprise values ranging from $15 million to $125 million. The firm’s mission is to partner with portfolio company management to develop and build world-class operations through a combination of manufacturing and operations excellence and targeted growth and expansion strategies. For additional information, please visit www.lfmcapital.com.
About EDSCO Fasteners
Founded in 1985, EDSCO is a leading manufacturer and distributor of 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.