Atlas Sells Banker Steel to DBM

Atlas Holdings has completed the sale of Banker Steel to DBM Global for an enterprise valuation of $145 million.

Banker Steel is a fabricator of structural steel components used in commercial and infrastructure projects. The company provides fabricated structural steel for the entire east coast construction market and nationwide steel erection services. Selected projects for Banker Steel include the Washington Nationals baseball park in Washington DC; and J.P. Morgan’s headquarters, the Barclays Center, and the Jacob K. Javits Convention Center in New York.

Banker Steel, headquartered in Lynchburg, Virginia, was founded in 1997 and consists of 6 operating companies with approximately 1,500 employees and facilities/offices in Florida, Georgia, New Jersey, New York, Texas, Virginia, and Canada.

Atlas and Turnspire Capital partnered with company founder Don Banker to acquire Banker Steel in August 2014 with Turnspire selling its equity interest to Atlas in February 2017.

“It’s been an incredible journey with Atlas, marked by continued expansion of our capabilities and reach.  The foundation we’ve built has us poised for a great next chapter of growth and success alongside DBM Global’s industry-leading suite of steel construction companies,” said Mr. Banker.

During Atlas’ ownership term the company completed seven add-on acquisitions including the buys of New York-based NYC Constructors and New Jersey-based MRP (March 2016); Virginia-based Memco Erectors (May 2018); Toronto-based Innovative Detailing and Engineering (December 2019); and Atlanta-based Derr & Isbell Construction (January 2020).

“When we first partnered with Don, we believed our safety culture and operational focus could complement and build upon the company’s stellar industry reputation and ultimately help expand its footprint,” said Ed Fletcher, a partner at Atlas Holdings. “Looking back, we’ve accomplished just that through a great working relationship, a dramatic improvement in Banker Steel’s safety performance and the execution of several strategic acquisitions.”

DBM Global (OTC: DBMG) (formerly Schuff International) is an operating subsidiary of publicly traded HC2 Holdings (NYSE: HCHC). HC2 was formerly known as Primus Telecommunications Group and was renamed HC2 Holdings in April 2014 after HRG Group (controlled by Harbinger Capital) acquired a 40% stake in the company. DBM Global’s portfolio of companies includes Schuff Steel Company, the largest steel fabrication and erection company in the United States, GrayWolf Industrial, DBM VirCon and Aitken Manufacturing.

“It’s been a pleasure to work alongside Don and his team to grow the business over the last seven years.  We are proud of what we’ve accomplished together and look forward to the Banker team’s continued success with their new partners at DBM,” added Jason Squire, a partner at Atlas Holdings.

Atlas is an industrial holding company that has more than 23 platform companies operating in a wide range of sectors with more than $10 billion in total revenues, more than 40,000 employees, and more than 250 facilities worldwide. Some of the sectors that Atlas invests in are aluminum processing, automotive, building materials, food manufacturing and distribution, packaging, paper, power generation and wood products.

In April 2021, Atlas held a first, final, and hard cap close of its fourth private equity investment fund, Atlas Capital Resources IV LP, with $3.1 billion of capital. Atlas was founded in 2002 by managing partners Andrew Bursky and Tim Fazio and is headquartered in Greenwich, Connecticut.

© 2021 Private Equity Professional | June 3, 2021

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