Platinum's Ryerson Adds On
As the beginnings of an economic recovery spur aggressive moves by industrial manufacturing pros, the Chicago-based metals processor and distributor Ryerson Inc. acquired the Houston, Texas-based steel plate fabricator Texas Steel Processing, Inc. for about $11.4 million. The add-on follows on the back of Ryerson’s filing for a public offering earlier this week.
The Platinum Equity LLC portfolio company expects the purchase of Texas Steel Processing will bolster its presence in the region. In speaking with Mergers & Acquisitions, Ryerson executive vice president and chief financial officer Terence R. Rogers said the transaction would “expand our product offering and capabilities in the Houston market.”
Rogers declined to comment of whether any changes to the management team were expected, but said most Texas Steel Processing employees would remain employed at Ryerson. The target company, formerly named Texas Plate Processing, Inc., was founded in 1995.
Platinum vice president Dan Whelan said the portfolio company will continue to evaluation additional add-on acquisitions.
Ryerson will raise up to $350 million in its public offering, and will use the capital to pay down its $200 million senior discount notes.
In July 2007, Platinum Equity acquired Ryerson Inc. for $34.50 per share in cash, or about $2 billion, in an all-cash transaction. In June, Delphi Corp., another manufacturing portfolio company of the Los Angeles-based private equity firm, completed a chapter 11 reorganization.
In addition to the firm’s Los Angeles, California headquarters, Platinum Equity has additional offices in New York City and London. As of Wednesday afternoon, Platinum Equity was unable to be reached for comment.