Staple Street acquires Mid-States Supply, distributor of valves and pipes

Staple Street Capital, the New York middle-market private equity firm, said that an affiliate acquired substantially all of the assets of Mid-States Supply Co, the Kansas City, Missouri, distributor of industrial valves, pipe, automation products, fittings, steam specialty items and controls. Terms weren’t disclosed. The deal was done via a stalking-horse bid in U.S. Bankruptcy Court, the firm said. Kirkland & Ellis was legal adviser to Staple Street Capital. Staple Street is currently investing out of a $265 million PE fund. It typically seeks to invest $15 million to $75 million of equity per transaction.

Press Release

Staple Street Capital Acquires Mid-States Supply Company

April 20, 2016

KANSAS CITY AND NEW YORK – An affiliate of Staple Street Capital, a leading middle market private equity firm, has acquired substantially all of the assets of Mid-States Supply Company (“Mid-States” or the “Company”).

Mid-States is a leading value-added distributor of industrial valves, pipe, automation products, fittings, steam specialty items and controls.  Mid-States provides its customers with a variety of value-added solutions, including:  valve actuation, custom fabrication and retrofitting, steam audits and management, and just-in-time and on-site inventory management programs.

The partners of Staple Street Capital said “We are excited to acquire Mid-States and provide the capital, operating and strategic resources to position the company for long term growth.  We plan to conservatively capitalize the Company and to invest in the Company’s people, processes, and systems to grow the business and further differentiate its product offerings.”

Ben Hurst, the Company’s CEO, said “We are thrilled to be partnering with Staple Street Capital.  Staple Street Capital’s emphasis on providing value added resources, commitment to operational excellence and continuous improvement, and conservative approach to financial leverage makes them a great partner for Mid-States. These are the ingredients we need in a partner to grow and strengthen our position in the industry.”

The transaction was effectuated through a successful stalking horse bid in a Section 363 process in the US Bankruptcy Court. Kirkland & Ellis served as legal advisor to Staple Street Capital. SSG Capital Advisors and Frontier served as investment bankers in the transaction. Spencer Fane and Winter Harbor served as legal and restructuring advisors, respectively, to the seller.