MiddleGround Capital acquires North American distributor of bicycle parts and accessories HLC – Business

MiddleGround Capital has acquired HLC, a distributor of bicycle parts and accessories in North America.

Based in Lévis, Quebec and Lexington, South Carolina, HLC distributes over 170 brands including SRAM, Shimano, Garmin, ABUS, RockShox, Kuat, Tacx and Muc-Off. HLC also has a portfolio of own brands including Evo, WheelShop, PWR bikes and Eclypse.

MiddleGround Capital is an operations-focused private equity firm that makes control investments in B2B industrial and specialty distribution companies in the North American middle market.

HLC President Pat McGinnis will continue to oversee day-to-day operations and its distribution centers in North America.

John Stewart, Founding Partner of MiddleGround, said, “We are delighted to invest in and support the growth of a clear North American market leader within the bicycle parts and accessories distribution industry. , which turned out to be a promising space given the recent favorable winds. As the mobility industry grows, bicycles will play an important role in transforming the industry.

“HLC is uniquely positioned to serve a large and fragmented customer base with value-added distribution capabilities. With the continued increase in the number of cyclists, which has accelerated due to technological advancements in the industry and the reintroduction of cycling to the masses during Covid, HLC is in an excellent position for long-term growth.

“We are excited to partner with Pat and the team to expand HLC’s geographic footprint and invest in technology and infrastructure that enables HLC to better serve existing customers and attract new customers. For MiddleGround Capital, this is the start of our investment in a platform that we believe can grow exponentially with the right strategic partner.

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With the additional resources and expertise of MiddleGround Capital, HLC will be better positioned for continued revenue growth, benefiting from industry tailwinds and long-term partnerships with its vendor and dealer partners. This transaction will reinforce HLC’s ongoing efforts to provide its customers with a full range of product offerings across major brands and new emerging brands alongside its own brands.

McGinnis said, “Today marks a very positive development for HLC and we look forward to beginning to work with the team at MiddleGround as we amplify our growth efforts. MiddleGround brings a distinct style with distinguished operational expertise and we knew it would fit right from the start.

“We look forward to working together to better serve the needs of bike shops and retailers through an expansion of geographic reach, product portfolio and end-market exposure.”

Lazard acted as exclusive financial advisor to HLC in its sale to MiddleGround Capital.