High Road Capital Partners has purchased Midwest Wholesale Hardware Co. for an undisclosed amount. Midwest marks as the sixth platform investment for the firm’s second fund, High Road Capital Partners Fund II.
Midwest, based in Kansas City, Missouri, is a wholesale distributor of door hardware supplies. The target also sells electronic access control and security products for commercial and institutional doors. Midwest operates distribution centers in California, Florida, Pennsylvania, South Carolina and Texas. The target plans to expand its geographic presence as part of the deal, according to Ben Schnakenberg, a partner at High Road.
"With High Road’s support, we will accelerate our growth by expanding our distribution coverage and investing in innovative technology solutions, particularly in electronic access control systems, the industry’s fastest growing segment,” states Midwest CEO Chris Casazza. “We also expect to pursue acquisitions.”
High Road, formed in 2007, is a lower middle-market private equity firm with more than $470 million in committed capital raised. The PE firm backs companies generating revenues between $10 million and $100 million. High Road targets investments involving manufacturing, service, media, healthcare, and distribution companies. The firm has completed 41 transactions since its inception.
The middle market has had a fair share of acquisitions involving door companies. Recent transactions include: Dormakaba’s agreement to buy portions of the mechanical security division from Stanley Black & Decker (NYSE: SWK) for $725 million; and Ridgemont Equity Partners’, through portfolio company The Cook & Boardman Group, completed purchase of Delta Door and Hardware LLC.
TM Capital Corp served as financial adviser to Midwest and Monroe Capital provided a unitranche credit facility to High Road for the acquisition.