North American distributor HLC acquired by private equity

North American bicycle parts and accessories distributor HLC has been acquired by MiddleGround Capital, an investment specialist that tends to buy into middle market B2B industrial and specialty distribution companies.

Founded on a collaboration between the Hawley and Lambert families, HLC is one of North America’s larger distribution houses, hosting over 170 brands, most notably the likes of SRAM, Shimano, Garmin, RockShox, Abus and many more.

The investment, for which the sum has not been disclosed, will provide the business with greater leverage and resources, enabling it to target further revenue growth. The business hopes to benefit from “industry tailwinds” and develop long-term partnerships with its vendor and dealer partners.

HLC’s President, Pat McGinnis, will continue to oversee day-to-day operations and its distribution centers across North America.

“We’re thrilled to invest in and support the growth of a clear North American market leader within the bicycle parts and accessories distribution industry, which has proven to be a promising space given recent tailwinds. As the mobility industry develops, bicycles will play an important role in the transformation of the industry. HLC is uniquely positioned serving a broad and fragmented customer base with value added distribution capabilities,” said John Stewart, MiddleGround Founding Partner. “With the ongoing increase in bicycle ridership, which accelerated due to technological advances in the industry and the re-introduction of cycling to the masses during COVID, HLC is in a great position for long-term growth. We are excited to partner with Pat and the team to expand HLC’s geographic footprint and make investments in technology and infrastructure that allow HLC to both better serve existing customers, as well as attract new customers. For MiddleGround Capital, this is the beginning of our investment in a platform that we believe can grow exponentially with the right strategic partner.”

“Today marks a very positive development for HLC and we are eager to begin working with the MiddleGround team as we amplify our growth efforts,” said HLC President Pat McGinnis. “MiddleGround brings a distinct style with distinguished operational expertise and we knew this would be a strong fit from the start. We are looking forward to working together to better serve the needs of bike stores 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.