Mayville Engineering Company, Inc., a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, today announced that it had completed the acquisition of privately held Mid-States Aluminum (“MSA”) on July 1, 2023.
Wisconsin-based MSA is an industry-leading, vertically integrated manufacturer of custom aluminum extrusions and fabrications. MSA offers value-added services that include design, engineering, extrusions, fabrication, anodizing and finishing, assembly, and packaging. With MSA, MEC secures an attractive entry-point within light-weight materials fabrication, while providing significant new cross-selling opportunities with both new and existing customers.
“This immediately accretive acquisition, excluding transaction costs, accelerates our entry into high-value, light-weight materials fabrication, consistent with the commercial growth strategy outlined in our MBX value creation framework,” said Jag Reddy, President and Chief Executive Officer. “With MSA, we’ve joined forces with another talented team whose commitment to value creation is closely aligned with our own, as demonstrated by their consistent track record of innovation, performance excellence and profitable growth. We look forward to a seamless integration process, one guided by a collaborative focus on delivering exceptional quality, service and unparalleled value to our combined portfolio of world-class customers.”
As previously disclosed, for the full-year 2022, MSA recorded total revenue and Adjusted EBITDA of approximately $86 million and $16 million, respectively, resulting in an Adjusted EBITDA margin of more than 18%. At closing, the transaction was immediately accretive, excluding transaction costs, to MEC’s earnings per share, Adjusted EBITDA and free cash flow. Based on current expectations and market conditions, the Company expects that the MSA acquisition will contribute between $30 to $35 million of net sales and between $4 to $6 million in Adjusted EBITDA for the fiscal year 2023.
ABOUT MAYVILLE ENGINEERING COMPANY
Founded in 1945, Mayville Engineering Company (MEC) is a leading U.S.-based, vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, power sports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 20 facilities across seven states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting.