Stellex Capital Management LLC Acquires MSS Group

LONDON--(BUSINESS WIRE)--Stellex Capital Management (“Stellex”), a middle-market private equity firm with extensive experience in industrial businesses and family successions, today announced a new platform investment in Bryden Capital Limited (“BCL”) and MPL Group Limited (“MPL”), together the MSS Group (“MSS” or the “Company”), a leading supplier and manufacturer of critical electronic components, focused on the global power industry. The financial terms of the transaction were not disclosed. This is Stellex’s second acquisition in Europe in 2023.

Based in Manchester, United Kingdom, with manufacturing operations in India and Poland and distribution facilities in the USA and across Europe, MSS is a provider of design, engineering, manufacturing, and distribution services to the global power industry, which is anticipated to grow at double-digit rates over the coming years. The Company’s core sectors are Electric Transmission and Distribution, Power Storage, and High Current DC Power Systems. Since 1973, the Company has been providing international customers with solutions that have enabled the growth of the power distribution and power storage markets. The Company’s product portfolio includes electrical connectors, battery cell components, electromechanical assemblies, and bespoke designed DC busbar systems.

“Stellex has a strong track record in partnering with families and investing in industrial businesses to support them in their next phase of growth,” said Mark Redman, Managing Partner at Stellex. “MSS is a critical partner to its customers, thanks to its ability to be a one-stop shop providing the required services and solutions. We are excited to support MSS’ organic and international expansion plans. Our goal is to help MSS climb the value chain and capture new markets while continuing to be a trusted, world-class partner to its blue-chip customers in the global power market.”

As part of the transaction, Brian Hall, MSS’ founder, and Liam Hall, MPL’s key shareholder, will reinvest in the Company alongside Stellex. The current management team, including Chris Hall, Managing Director of BCL, and Liam Hall, Managing Director of MPL, will continue to lead the delivery of MSS’ growth initiatives by leveraging its existing joint capabilities. To further support Management, Stellex has introduced Hamdi Conger to the role of Chairman. Mr. Conger is a seasoned executive, with previous senior experiences at companies such as Alstom and Tractel.

“I’m thrilled to partner with Stellex as it leverages the strong platform we have built at MSS and takes advantage of the positive tailwinds in our key end markets. We have carefully built a strong culture of collaboration with customers, focused on industry-leading delivery and quality. We now believe the Company is ready to grow to the next level,” commented Brian Hall. “We plan to create value for both MSS’ customers and employees and to become an even more valuable manufacturing partner.”

Chris Hall and Liam Hall said, “We are excited for the road ahead with Stellex as we grow the MSS Group platform both organically and inorganically. Our vision is to become a global one-stop shop for OEMs.”

King & Spalding LLP provided legal support to Stellex, PricewaterhouseCoopers LLP supported Stellex’s commercial due diligence for the transaction and Deloitte LLP provided financial and tax advice. MSS was advised by HSBC Bank Plc on the transaction and further supported by Hill Dickinson LLP on legal matters, KPMG International Limited on financial matters, L.E.K. Consulting on commercial vendor diligence, and Jamieson Corporate Finance LLP supporting management through the transition from owner-manager to a PE-owned company.

About MSS Group

MSS Group is a provider of design, engineering, manufacturing, and distribution services to the global power industry, serving a variety of Tier 1 and OEM customers with operations in the United Kingdom, India, and Poland. Additional information may be found at www.mssproducts.com.

About Stellex Capital Management LLC

With offices in New York, Detroit, Pittsburgh, and London, Stellex Capital is a private equity firm with over $2.6 billion in AUM. Stellex seeks to identify and deploy capital in opportunities with the potential to provide stability, improvement, and growth. Portfolio companies benefit from Stellex’s industry knowledge, operating capabilities, network of senior executives, strategic insight, and access to capital. Sectors of particular focus include specialty manufacturing, industrial and business services, aerospace & defense, automotive, government services, transportation, logistics and food. Additional information may be found at www.stellexcapital.com.