Forged Solutions Group, a portfolio company of Arlington Capital, has acquired Steel Industries.
Arlington Capital formed Forged Solutions Group (FSG) in November 2019 as a platform in the aerospace components sector to acquire the UK-based Blaenavon forging business of Doncasters Group. In December 2019, FSG quickly add-on with the buy of UK-based Firth Rixson Forgings from Arconic (formerly Alcoa).
Today, FSG manufactures shafts, rings, discs, asymmetric forgings, and extruded cylinders in a range of titanium, nickel, and steel alloys. Customers of FSG include original equipment manufacturers and Tier 1 suppliers in the aerospace and defense sectors. The company, led by President Ben McIvor, is headquartered near Birmingham in Derbyshire, UK.
Steel Industries is a manufacturer of open die forgings and seamless rolled rings used in the aerospace and defense, nuclear, space, industrial, and transportation markets. The company’s material capabilities include stainless steel, aluminum, nickel-based alloys, carbon, and alloy steel. Steel Industries also provides heat treating, rough and finish machining, and testing services. Steel Industries was founded in 1913 and is headquartered near Detroit in Redford, Michigan.
Post-closing, Steel Industries will be led locally by Frank Witte and his existing management team. “I am excited to partner with FSG and the Arlington team to build on the storied legacy we have at Steel Industries,” said Mr. Witte. “With access to additional corporate resources and capital for investment, I believe the company is well positioned to continue on its growth trajectory.”
“We are excited to begin our partnership with the Steel Industries management team and welcome them into the FSG platform,” said Peter Manos, a managing partner at Arlington Capital. “We have been highly impressed by the company’s differentiated ring-forging capabilities, strong customer relationships across a variety of end markets, and exciting growth prospects on rapidly scaling space programs. We look forward to supporting their continued strong growth as part of FSG.”
“Steel Industries is a highly complementary acquisition for FSG, broadening its product portfolio, metals expertise, and customer relationships,” said Henry Albers, a vice president at Arlington Capital. “We look forward to the growth opportunities this transaction will create for FSG and its customers and employees.”
Chevy Chase, Maryland-based Arlington Capital invests in government-regulated industries and adjacent markets including aerospace and defense; government services; and technology, healthcare, and business services. Arlington is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019. In February 2021, Goldman Sachs Asset Management made a non-voting minority equity investment in the firm.
© 2022 Private Equity Professional | November 18, 2022
