LBC Credit Partners has agented a $15 million second lien term loan to support the acquisition of Alliance Steel by Associated Steel Group, a portfolio company of Promus Equity Partners and Jon Vesely, an independent sponsor, formed in August 2012 to consolidate the metal building industry.
Alliance is a fully integrated manufacturer of metal building systems, structural steel and components, focused primarily on serving non-residential customers in Oklahoma, Texas and other surrounding states. Alliance specializes in the construction of complex, highly-engineered low-rise metal buildings which it manufactures at its Oklahoma City facility and either ships the materials to customer job sites or makes them available at the plant for customer pick-up; Alliance does not provide on-site erection services. Building types include office and retail buildings, warehouses, manufacturing plants, churches, schools, agricultural buildings and aircraft hangers. The company is led by President Larry Thomas and operates from a 415,000 square foot facility in Oklahoma City (headquarters) with 340 employees (www.allianceokc.com).
Associated Steel Group (ASG) is a designer and manufacturer of custom engineered metal buildings, roofing systems and components for the non-residential construction industry. Building types include churches, schools, industrial structures, warehouses, aircraft hangers, municipal complexes and other retail structures. ASG distributes its products through a contractor base that promotes ASG building system and roofing solutions in their local markets. . The company is headquartered in Nashville (www.acibuildingsystems.com).
ASG is led by Tim Ritchie, CEO, and Jon Vesely, Chairman of the Board, who both have past experience consolidating the metal building industry. With the acquisition of Alliance Steel ASG has now completed three add-on acquisitions having previously purchased ACI Building Systems (Mississippi) and AIM Metals (Georgia). According to ASG, the acquisition of Alliance makes ASG the fourth largest company in the metal building systems industry.
LBC Credit Partners is a provider of middle market financing to companies with EBITDAs generally greater than $10 million. Products include senior term, unitranche, second lien, junior secured and mezzanine debt and equity co-investments supporting sponsored and non-sponsored transactions. LBC invests from $10 million to $50 million per transaction supporting acquisitions, growth strategies, refinancings, recapitalizations, and restructurings. LBC has more than $1.4 billion of capital under management and is headquartered in Philadelphia with additional offices in Chicago and New York (www.lbccredit.com).
Promus Equity Partners is a private equity investment firm affiliated with Promus Holdings, a multi-family asset management firm with approximately $500 million of capital under management. Promus targets lower-middle market companies with EBITDA of $15 million or less. The firm is based in Chicago (www.promusequity.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-21-14