MEC to acquire Mid-States Aluminum

Mayville Engineering Company, Inc. (MEC), a value-added provider of design, prototyping and manufacturing solutions, announced a definitive agreement to acquire privately held Mid-States Aluminum Corp. (MSA) for a total consideration of approximately $96 million, subject to customary adjustments.

Mid-States Aluminum Corp. is a vertically integrated manufacturer of custom aluminum extrusions and fabrications. (Photo: Mid-States Aluminum)

Wisconsin-based MSA is a vertically integrated manufacturer of custom aluminum extrusions and fabrications. It offers value-added services that include design, engineering, extrusions, fabrication, anodizing and finishing, assembly and packaging. The nearly 60-year-old company has served major OEMs in diverse end markets, including in building and construction, recreation, medical, agriculture and transportation. It has two facilities, both in Fond du Lac, Wis., with approximately 325,000 sq. ft. of total manufacturing space. 

“MSA is an established provider of aluminum extrusions whose history of growth and innovation, attractive margin profile, deep customer relationships and diverse end markets are highly complementary to our existing business,” said Jag Reddy, MEC president and CEO. “Upon closing of the acquisition, MSA will be immediately accretive, excluding transaction costs, to MEC’s earnings per share, Adjusted EBITDA margin and free cash flow.”

For the full-year 2022, MSA recorded total revenue of approximately $86 million. Based on current expectations and market conditions, MEC expects the MSA acquisition to contribute between $30 million to $35 million of net sales and between $4 million to $6 million in Adjusted EBITDA for fiscal year 2023.

The acquisition of MSA will accelerate the expansion of MEC’s capabilities into lightweight materials fabrication, which Reddy said has been a designated strategic priority. “MSA’s state-of-the-art design, engineering and manufacturing capabilities are highly complementary to our existing operations,” he added, “providing a platform for higher-margin profitable growth within growing adjacent markets.”

MEC will be able to meet increasing customer demand for fabrications expertise within aluminum and other lightweight materials. The acquisition will position the company to grow with existing accounts, while building its market position within nascent, high-potential industries.

The acquisition is expected to close during the third quarter 2023, subject to the satisfaction of customary closing conditions.