Case Study: Midasco
Background
Founded in 1982 and based in Elkridge, Maryland, Midasco is the premiere specialty infrastructure contractor serving the transportation marketplace in the Mid-Atlantic and South-Eastern United States. Midasco’s expertise is in the construction and maintenance of highway and airport signing, lighting, traffic signals, intelligent transportation systems (ITS), fiber optic systems, tolling infrastructure, electrical / communications systems and more.
Transaction
In January 2006, a transaction was consummated in partnership with the management team to buy-out several passive shareholders and inject fresh capital into the business to support Midasco’s strategic growth initiatives.
Our Involvement
The initial transaction was structured to include debt and equity capital to provide the desired liquidity to the selling family members. A follow-on investment was made in October 2008 to strengthen the company’s balance sheet in support of a significant business opportunity. Meaningful value was added in advising the board on bank financing, assisting in expanding the surety bond program, and implementing a formal strategic planning program.
Outcome
After six years of strong growth in revenue and profit driven by geographic expansion and the successful completion of larger more complex projects, the company was acquired by a multi-national strategic buyer.
