Denver, CO – September 20, 2023 – Crest Rock Partners (“Crest Rock”), a Denver-based private equity firm investing in lower middle market software, technology, services and manufacturing businesses, today proudly announced an investment in Midwest Alloys & Technology Inc. and Midalloy Specialty Materials, LLC (together “Midalloy” or the “Company”). Founded in 1985 and headquartered in St. Louis, Missouri, Midalloy is a value-added supplier of specialty alloy welding consumables and bar and wire rod products that are used in mission-critical applications in demanding end markets, including aerospace, defense, and petrochemical. Midalloy’s founders invested alongside Crest Rock.
Midalloy is comprised of two standalone entities: Midalloy Performance Welding Products (“MID”), founded in 1985, and Midalloy Specialty Materials (“MSM”), founded in 2006. MID offers Midalloy branded specialty alloy joining and overlay products primarily to gas and welding supply distributors across the United States. MSM supplies bar and wire rod products to manufacturers of critical components, including fasteners, fittings, flanges, valves, and pumps. MSM helps alleviate customers’ supply chain risk and offers continuous on-site supply of its specialty alloy products through its customized inventory management programs. The Company’s technical expertise and superior customer support have created a dedicated customer base of manufacturers and distributors that continues to expand over time.
“We are thrilled to partner with Crest Rock on the next phase of our Company’s journey,” said Dennis Nelson, co-founder and President of Midalloy. “Brad Brunk, Cliff Bailye, and I were looking for a partner who brought extensive operating expertise and knowledge, in addition to capital, to support our strategic plan and provide fresh ideas to lead Midalloy to new heights. Crest Rock is exactly the partner we envisioned.”
“Midalloy’s breadth of products and employee expertise provide exceptional value to its customers,” commented Steve Johnson, co-founder and Partner at Crest Rock. “The Company’s metallurgic and welding engineering knowledge, long-standing relationships with steel mills, and partnership approach have created many satisfied customers who have remained loyal to the Company, in many cases for decades. The specialty alloys environment is becoming increasingly challenging to navigate with supply chain issues, geopolitical tensions, and pricing fluctuations. Midalloy is well positioned to address its customers’ needs with its differentiated expertise and specialized offerings. We are excited to partner with Midalloy as they continue to serve as a value-added supplier to distributors and manufacturers and help them address their specialty alloy needs.”
About Crest Rock Partners
Crest Rock Partners is a Denver-based private equity firm focused on the lower middle market. Founded in 2019, the firm seeks investment opportunities where it can leverage its principals’ extensive operating and investing experience to help companies execute their strategic initiatives. Through the team’s completion of over 60 acquisitions, divestitures, mergers, and integrations, Crest Rock has developed a differentiated investment process and partnership approach, working with management, founders, and other shareholders to establish alignment and achieve mutual objectives. Crest Rock targets control investments across multiple industry verticals, including software, technology, IT services, tech-enabled business services, manufacturing, and industrial services with enterprise values ranging from $15 million to $150 million. For more information about Crest Rock, please visit www.crestrockpartners.com.
About Midalloy
Founded in 1985 with locations in Saint Louis, Missouri and Houston, Texas, Midalloy provides high quality, specialty alloy welding products, bar, and wire rod to welding supply distributors and manufacturers. Midalloy Performance Welding Products supplies a nationwide network of welding distributors while Midalloy Specialty Materials provides the highest quality nickel alloy and specialty stainless products to manufacturers across the nation. The Company is ISO 9001:2015 certified and is a member of several industry groups, including the American Welding Society, the Gases and Welding Distributors Association, and the Pipe Fabrication Institute. For more information, visit www.midalloy.com and www.midalloy-sm.com.