PE Deals

MiddleGround adds machining shop Megatech to its basket

Based in Quebec City, Megatech is a machining shop focused on highly-complex, highly-precise, low-volume engineered parts.

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  • Megatech’s customer base spans end-markets like optics and photonics, robotics, non-destructive testing, medical and A&D
  • MiddleGround will use its resources to build a larger platform around Megatech focused on highly specialized, complex, low-to-medium volume prototyping and production parts in the outsourced manufacturing space
  • Stifel was the financial advisor to Megatech in the deal

MiddleGround Capital has acquired Megatech, a Quebec City-based machining shop focused on highly-complex, highly-precise, low-volume engineered parts. No financial terms were disclosed.

Established in 1992, Megatech leverages simulation, 3D visualization, analytics, and collaboration tools to produce a range of products for more than 100 customers utilizing its modern fleet of equipment. Its customer base spans end-markets like optics and photonics, robotics, non-destructive testing, medical and A&D.

“Our growth to date can be attributed to our employees, equipment, processes and engineering capability along with our ability to provide highly-technical and complex machining capabilities with fast turnaround times,” said Jean Blanchet, CEO of Megatech, in a statement.

MiddleGround will use its resources to build a larger platform around Megatech focused on highly specialized, complex, low-to-medium volume prototyping and production parts in the outsourced manufacturing space with strong revenue tailwinds.

“Our operations team will help to ensure that Megatech has the tools to meet increased demand, including considering re-configuring existing facility footprints, optimizing machine utilization, adding new machines in the facility’s whitespace, and evaluating opportunities to benefit from advancements in procurement,” said Marty Sjoquist, director, investment team at MiddleGround.

The financial advisor to Megatech in its sale to MiddleGround was Stifel.

Based in Lexington, Kentucky, MiddleGround is a private equity firm that manages more than $3.3 billion of assets. It makes control equity investments in mid-market B2B industrial and specialty distribution businesses.