Acquisition of Midway Industrial Supply by GGC

FOR IMMEDIATE RELEASE

MINNEAPOLIS—January 13, 2012—Generation Growth Capital Fund II, LP (“Generation Growth” or “GGC”) has acquired Midway Industrial Supply, Inc. (“Midway” or “MIS”). Terms of the transaction were not disclosed. Midway Industrial Supply is a leading distributor and systems integrator of industrial fluid handling and spray finishing equipment and supplies based in St. Paul, Minnesota. Generation Growth is a Milwaukee-based private equity group focusing on investments in growing lower middle market businesses.

For over 60 years, Midway has been a leading distributor and systems integrator of fluid handling and spray finishing equipment and supplies, selling products from Graco, ITW Binks/DeVilbiss/Ransburg, Nordson, Global Finishing Solutions and many other key vendor partners. MIS sells to a wide variety of manufacturers in the Upper Midwest, with a presence in Minnesota, Wisconsin, Illinois, Iowa, Nebraska and the Dakotas. The existing management team, including CEO Gregg Lien, will continue operating the business following the transaction.

Lien remarked, “Midway Industrial Supply is thrilled to partner with Generation Growth Capital to further fuel the success and growth of our business. With Generation’s help, we look forward to expanding our markets while continuing to deliver the same great products and service our customers have come to depend on for decades.”

Generation Growth is a private equity firm that provides capital to small businesses to help support a broad range of growth opportunities. By partnering with solid management teams, GGC adopts a proactive,collaborative approach that improves and builds businesses they invest in. Generation Growth also taps the knowledge and collective experience of a network of advisors and operating partners. GGC is investing out ofits second fund and currently has investments in six other portfolio companies across a variety of industries.

John Reinke, a Managing Director of Generation Growth, commented, “Midway Industrial Supply represents a model investment for GGC. Gregg Lien has developed a very strong operating model that can be used as a growth platform for future acquisitions. We very much look forward to working with Gregg and helping to drive the growth strategy of Midway.”

Justin Besikof, President of Lurie Besikof Lapidus Private Investment Banking, acted as the exclusive financial advisor to Midway Industrial Supply. Besikof stated, “It was a great pleasure working with Midway and Generation towards a very successful transaction. MIS represents a strong investment opportunity in a fragmented industry that is ripe for consolidation.”

Legal counsel for the transaction included Fredrikson & Byron P.A. who advised Midway Industrial Supply and Godfrey & Kahn, S.C. who advised Generation Growth Capital Fund II, LP.

About Lurie Besikof Lapidus Private Investment Banking, LLC

Lurie Besikof Lapidus Private Investment Banking, LLC is a mergers and acquisitions (M&A) advisory firm that specializes in the sale of middle market companies in niche manufacturing, value-added distribution, business services and specialty retail. Please visit www.lblpib.com for more information.

About Midway Industrial Supply, Inc.

Midway Industrial Supply, Inc. is a St. Paul, Minnesota-based distributor and systems integrator of industrial fluid handling and spray finishing equipment and supplies, representing top manufacturers in all product categories. Midway operates across Minnesota, Wisconsin, Illinois, Iowa, Nebraska and the Dakotas. Please visit www.midwayis.com for more information.

About Generation Growth Capital Fund II, LP

Generation Growth Capital Fund II, LP is a Milwaukee-based private equity firm focusing on investments in small businesses to support growth opportunities. Generation now has investments in seven portfolio companies and is currently investing out of its second fund. Please visit www.generationgrowth.com for more information.

Contacts

On behalf of Lurie Besikof Lapidus Private Investment Banking:

Justin Besikof, President
Lurie Besikof Lapidus Private Investment Banking, LLC
jbesikof@lblco.com | (612) 381-8879

On behalf of Midway Industrial Supply, Inc.:

Gregg Lien, CEO
Midway Industrial Supply, Inc.
glien@midwayis.com | (763) 780-3000

On behalf of Generation Growth Capital Fund II, LP:

John Reinke, Managing Director
Generation Growth Capital, Inc.
jreinke@generationgrowth.com | (414) 291-8915

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