FGI Supports MiddleGround Capital Acquisition of A.M. Castle & Co.
“MiddleGround Capital is proud to be a part of Castle Metal’s growth trajectory and to expand our footprint in the metal service center space. FGI’s ability to support domestic and global distribution with a cost-effective, flexible facility was pivotal in the successful closing of the acquisition. ”
Director, MiddleGround Capital
“FGI immediately came to mind when we sought out expertise on behalf of our prospective client to finance assets in Mexico. We knew FGI would deliver with certainty to execute on a successful acquisition.”
Senior Vice President/Relationship Manager, Fifth Third Bank
A.M. Castle & Co. (“Castle Metals”) is a leading provider of metals, services, and supply chain solutions. Headquartered in Illinois with locations throughout North America, Europe, and Asia, Castle Metals distributes and processes alloy, carbon, stainless steel, nickel, aluminum, titanium, cast iron, and red metals in the aerospace, defense, oil and gas, power generation, and heavy equipment industries.
MiddleGround Capital, an operationally focused private equity firm with a focus on middle-market manufacturing B2B companies in the industrial and specialty distribution sectors, was in the process of acquiring Castle Metals as a new platform. Fifth Third Bank sought out FGI to provide a complete solution to close the acquisition and finance assets in Mexico. As Castle Metals continues their expansion into Mexico, Europe, and Asia, finding a partner with an understanding of multi-jurisdictional solutions and able to finance AR and inventory in Mexico was essential.
FGI structured a $17MM facility, in conjunction with a senior credit facility provided by Fifth Third Bank, that provided Castle Metals with an ample liquidity cushion to close the acquisition, in addition to continuous working capital to support further expansion and strengthening infrastructure, including wider processing capability, broader inventory, enhanced systems, and continuous improvement techniques.
