Middleground Capital Acquires Shiloh Industries, Inc.

Lexington, KY., November 30, 2020, MiddleGround Capital announced today that it has acquired majority ownership of Shiloh Industries, Inc. This is MiddleGround’s seventh platform acquisition made from its first fund and the firm’s fifth acquisition of 2020. This transaction also marked MiddleGround’s second automotive deal sourced, diligence, and closed during the COVID-19 pandemic. MiddleGround is actively investing in lower middle market B2B industrial businesses headquartered in North America from its first institutional fund.

Shiloh is a global innovative solutions provider focusing on light weighting technologies that provide environmental and safety benefits to the mobility market.  Shiloh designs and manufactures products within body structure, chassis and propulsion systems. The company’s multi-component, multi-material solutions are comprised of a variety of alloys in aluminum, magnesium and steel grades, along with its proprietary line of noise and vibration reducing acoustic laminate products.

MiddleGround partner John Stewart, who spent 18 years of his career at Toyota Motor Company, stated, “The automotive industry is undergoing a major transformation.  Changes in the industry are unfolding every day.  We are excited to acquire such a well-positioned company like Shiloh. We believe Shiloh is uniquely positioned to support the transformation of the vehicle as a trusted partner with proven technology for vehicle light weighting and the electrification of the powertrain. We are excited to support Shiloh as they continue to lead the industry in innovative solutions for the next phase of mobility.”

“Shiloh’s highly engineered solutions support sustainability trends by reducing power consumption, increasing fuel economy and reducing emissions,” said MiddleGround partner Scot Duncan, who spent 13 years at Toyota Motor Company. “Shiloh remains a trusted partner in the global transportation community and we look forward to supporting the next phase of the company’s growth.”

John Poff, a member of the fund’s ESG committee and automotive industry “lifer”, stated, “As a PRI Signatory, we at MiddleGround have made a commitment to focus on ESG initiatives across the fund and portfolio.  The management team at Shiloh recognizes the importance of being an important part of the local economy while also being a responsible corporate citizen. The company’s efforts with Environmental excellence and ISO 14001 certification is a testament to our shared values.”

Shiloh CFO Lillian Etzkorn commented, “While the restructuring process can create stress across an organization, we found comfort in partnering with a firm that not only had the right operational experience, but also shared our strategic vision for the future of Shiloh.” Scott Borovich, the Vice President of Business Development and Technology at Shiloh also stated, “We believe MiddleGround has the experience and industry expertise to best support our business and look forward to working together as we continue to serve our customers across the mobility market.”

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. It is currently investing out of its first fund. 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 further information, please visit: www.middlegroundcapital.com.

Tue, December 1, 2020