Associated Steel Group, a portfolio company of Promus Equity Partners and Jon Vesely, an independent sponsor, have acquired Alliance Steel. Associated Steel Group was formed in August 2012 as a platform to consolidate the metal building systcem industry. With the acquisition of Alliance, Associated Steel Group will become the fourth largest company in the metal building system 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).
Prior to acquiring Alliance Steel, Associated Steel Group had completed two acquisitions with the purchases of Mississippi-based ACI Building Systems in September 2012 and Georgia-based AIM Metals in February 2013.
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 led by Tim Ritchie, CEO, and Jon Vesely, Chairman of the Board, who both have experience consolidating the metal building industry. ASG is headquartered in Nashville (www.acibuildingsystems.com).
“Alliance has long been considered one of the premier companies in the industry. Larry Thomas’ 35 years of market knowledge and successful leadership will enhance our footprint and provide best practices across all operating divisions,” said Mr. Ritchie. “We are excited about the market momentum in Alliance’s region, as well as the broader non-residential construction market, and look forward to continuing the high level of service our customers expect.”
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).
SunTrust Bank provided a senior credit facility and LBC Credit Partners provided a second lien facility.
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-23-14
