The L.S. Starrett Company has agreed to be taken private by MiddleGround Capital
The L.S. Starrett Company
Founded in 1880 by Laroy S. Starrett and incorporated in 1929, The L.S. Starrett Company is a leading manufacturer of high-end precision measuring tools, cutting equipment and metrology systems for industrial, professional and consumer end markets. The company has more than 140 years of global manufacturing experience and currently operates four major global manufacturing plants. All subsidiaries principally serve the global manufacturing industrial base with concentration in the metalworking, construction, machinery, equipment, aerospace and automotive markets. The company offers its broad array of measuring and cutting products to the market through multiple channels of distribution throughout the world. Starrett is a brand recognized around the world for precision, quality and innovation. For more information, please visit www.starrett.com.
The Deal
Starrett (NYSE:SCX) has entered into a definitive merger agreement in a go-private transaction with an affiliate of MiddleGround Capital in an all-cash transaction. The proposed transaction has been approved by the Starrett Board of Directors. MiddleGround intends to fund the transaction with a combination of cash from MiddleGround Partners III, L.P. and committed financing, which is not subject to any contingency. The transaction is expected to close in mid-2024, subject to the requisite approval by Starrett’s shareholders and other conditions to closing. Following completion of the transaction, Starrett will become a wholly owned subsidiary of MiddleGround and Starrett’s Class A common stock will no longer be listed on any public market. Lincoln International served as the lead financial advisor to Starrett and provided a fairness opinion to its board of directors in connection with the transaction. Winston & Strawn LLP served as legal counsel to Lincoln in connection with the transaction.
MiddleGround Capital
MiddleGround is a private equity firm based in Lexington, Kentucky with over $3.5 billion of assets under management. MiddleGround makes control equity investments in middle market business-to-business industrial and specialty distribution businesses. MiddleGround works with its portfolio companies to create value through a hands-on operational approach and partners with its management teams to support long-term growth strategies. For more information, please visit www.middleground.com.
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