Service Center News

A.M. Castle, Banner Merge Under CV

By on

A.M. Castle & Co. and Banner Industries will merge under a single asset combined vehicle of MiddleGround Capital, a Lexington, Ky.-based private equity firm. The companies will continue to operate under their original brand names but operated by MiddleGround Capital Carbon CV, L.P.

Castle is a provider of metals, services and supply chain solutions, primarily to industrial and aerospace customers. Banner is a leading processor and distributor of metal bar products to a diverse set of industrial and medical end markets. MiddleGround originally purchased Banner in December of 2019 from High Street Capital of Chicago.

Since MiddleGround's investment in Banner in 2019, MiddleGround brought industry veteran Dan Stoettner back to lead the business. Under Stoettner’s leadership, the company completed two acquisitions. In 2019, the company did a little over $100 million of revenue. For the last 12 month-period, Banner has more than tripled in size to nearly $350 million of revenue.

Castle Metals was a public company up until 2020 and had been on MiddleGround’s watch list for years. Castle has a global footprint and $600 million of revenue. MiddleGround acquired Castle earlier in 2023.  

“The CV allows MiddleGround to extend its ownership of Banner as well as to support a merger between Castle and Banner. The combination further expands on MiddleGround’s value creation plan by building a global leader within the metals distribution space. Following the close of the transaction, Banner and Castle will continue to operate as independent brands while also benefiting from these additional resources, expanded geographic reach and complementary product offerings under a single capital structure,” said Ryan McComb, director and the lead of the transaction team for the CV.

“This is a natural fit given that Banner and Castle have long been recognized for their unparalleled metals expertise across the medical, industrial and aerospace sectors,” said Stoettner. “Through this combination, we will be better equipped to meet the evolving needs of a variety of industries.