Target Information

Lindsay Precast is a prominent designer and manufacturer specializing in engineered precast concrete structures. Serving a diverse clientele, the company provides products for various markets including water/wastewater, utilities, solar energy, transportation, and government sectors. With over 50 years of heritage, Lindsay Precast has built a strong reputation for its commitment to quality and innovation.

The company’s product portfolio encompasses a wide range of essential infrastructure elements such as sanitary and storm sewer products, electrical and telecom utility components, solar inverter skids and ballast bases, as well as box culverts and bridge products. Lindsay Precast caters to numerous customers, including municipal government entities, utility firms, renewable energy companies, and federal agencies, thus ensuring a stable demand for its offerings.

Industry Overview

The precast concrete industry has shown considerable growth in recent years, particularly in the United States. As urban infrastructure continues to age, there is a pressing need for innovative solutions that can meet the increasing demands of cities and municipalities. This necessity is further driven by significant government investment in public infrastructure projects, aiming to bolster economic growth and improve the quality of public services.

In the U.S., the infrastructure sector is projected to experience significant investments, especially towards aged infrastructure renovation, renewable energy advancement, and energy storage solutions. This environment offers fertile ground for investment opportunities, particularly for firms focusing on precast concrete solutions that promise efficiency and sustainability.

Lindsay Precast is poised to benefit from these trends, given its niche positioning and capabilities in providing engineered products that meet emerging infrastructure challenges. The company’s alignment with critical sectors such as renewable energy and utility supports its growth potential in a landscape driven by transformation and modernization efforts.

Overall, the precast concrete market in the United States is characterized by a diverse range of players but is increasingly consolidating as larger firms seek to enhance their supply chains and offer holistic solutions. Companies like Lindsay Precast, which offer a mix of innovation and established market presence, are well-positioned to capture market share and drive growth.

Rationale Behind the Deal

The acquisition of Lindsay Precast by MiddleGround Capital reflects a strategic move to capitalize on the burgeoning infrastructure market in the United States. This investment aligns with MiddleGround's focus on sourcing assets within critical supply chain sectors experiencing substantial demand for innovative solutions.

According to Scot Duncan, Founding Partner of MiddleGround Capital, Lindsay Precast epitomizes an opportunity to acquire a leading player in the precast concrete segment with promising exposure to infrastructure-related investments. The combination of government initiatives and ongoing infrastructure spending positions Lindsay Precast to thrive under MiddleGround’s stewardship.

Investor Information

MiddleGround Capital is a private equity firm focused on operationally enhancing middle-market B2B industrial and specialty distribution companies across North America. With a strategic emphasis on control investments, the firm has successfully raised $800 million in committed capital for its second fund earlier this year, aiming to deploy this capital into businesses that exhibit strong growth potential and robust market demand.

MiddleGround’s approach is rooted in a collaborative partnership with its portfolio companies, providing them with the operational resources and strategic insights required to scale effectively in their respective markets. Their investment in Lindsay Precast marks a commitment to fostering growth in sectors critical to national infrastructure improvement.

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The acquisition of Lindsay Precast by MiddleGround Capital presents a compelling investment opportunity, particularly given the current macroeconomic tailwinds favoring infrastructure modernization and development. With increasing state and federal funding aimed at upgrading outdated infrastructure, Lindsay Precast stands to benefit significantly.

The company’s established reputation and diversified product range position it well to leverage the growing demand for precast concrete solutions—especially within the utility and renewable energy sectors. MiddleGround’s operational expertise will likely accelerate Lindsay Precast’s growth and innovation initiatives, further enhancing its market competitiveness.

Moreover, the firm's commitment to maintaining Lindsay Precast's strong ethical foundation and family-oriented values aligns with current trends where consumers increasingly favor businesses that prioritize sustainability and community impact. This alignment could strengthen customer loyalty and foster new business relationships.

Overall, this deal could indeed signify a fruitful investment path for MiddleGround Capital, bearing the potential for significant positive returns as infrastructure developments burgeon in the coming years.

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