Southfield-based Peterson American Corp. has completed its sale to MiddleGround Capital, a newly formed private equity firm that makes control equity investments in lower middle market North American companies.

PAC, through its Peterson Spring and PAC Racing brands, is a leading designer and manufacturer of precision-formed metal parts for critical applications with operations spanning back to 1914.

“There aren't many family owned businesses that are able to thrive over the course of five generations of family ownership, and we're proud to have accomplished that feat,” PAC shareholder Eric Peterson said in a statement. “We are looking forward to the continued growth of the Peterson brand under MiddleGround's ownership.”

P&M Corporate Finance LLC served as the exclusive investment banker to PAC shareholders, managing the entire transaction process.

“We hired PMCF several years ago to not only lead this transaction, but advise our board and management as we prepared to exit the business,” Peterson said. “We observed PMCF's knowledge of our business, management of the process, and transaction experience firsthand, and we value their contributions to this successful transaction.”

Companies such as PAC “have historically invested in North American manufacturing and have provided critical manufacturing jobs that have benefited the U.S. economy and supported their local communities,” said MiddleGround co-founder John Stewart.

“Our investment in Peterson seeks to build upon the company's strong foundation, and position the company for growth while ensuring manufacturing employment opportunities for generations to come,” Stewart said.

Kerr, Russell and Weber PLC served as the legal adviser to PAC.