steel processing

Peak Rock Capital has acquired Main Steel Polishing Company, a specialty metals processing company, from Shale-Inland.

Main Steel Polishing Company is a processor and polisher of stainless steel, aluminum, and nickel alloys.  The company’s products are used in a range of markets, including transportation, fabrication, petrochemical and food service.  The company has a network of processing facilities located in Elk Grove Village, IL (headquarters); Atlanta, GA; Harmony, PA; and Riverside, CA (www.mainsteel.com).

Peak Rock Capital makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million.  Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin (www.peakrockcapital.com).

“The acquisition of Main Steel provides Peak Rock Capital with a world-class platform for strategic add-on acquisitions in the metals processing and tolling sector,” said Peter Leibman, Managing Director of Peak Rock Capital.

Upon closing of the acquisition, Peak Rock appointed Tom Modrowski, a steel industry veteran, as Main Steel’s new Chief Executive Officer.  “Main Steel has a rich heritage as a leading toll processor of specialty metals, and we look forward to partnering with Peak Rock to continue investing in and growing the company’s capabilities, with a focus on rapidly growing its toll processing business while continuing to meet the needs of its strategic partners,” said Mr. Modrowski.

Shale-Inland is a specialty industrial supplier of metal, pipe, valves, fittings and related products to the energy and industrial sectors. The company was founded in 2010 and is based near Houston in Bellaire, TX (www.shale-inland.com).

Stout Risius Ross (www.srr.com) acted as the financial advisor to Peak Rock Capital on the transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 11-19-14

Resilience Capital Partners has acquired steel processors Hynes Industries and Hynes Kokomo. The two companies will operate as a newly-formed platform company that will operate under the name Hynes Industries.  Members of the founding Bresnahan family will retain a minority ownership stake in the business. The acquisition of Hynes is Resilience Capital Partners’ ninth platform investment for The Resilience Fund III, LP.

Hynes Industries is a manufacturer of rolled formed shapes, strip steel and flat wire. The company serves customers in the truck trailer, building and construction products, home and long-term care sectors.  Hynes operates five plants totaling more than 270,000 square feet and maintains a domestic steel inventory that exceeds 36 million pounds.  The company is headquartered in Youngstown, OH (www.hynesindustries.com).

“Hynes has developed a very strong reputation in the marketplace that is driven by their on-time delivery and quality record.  They have an impressive track record and a great foundation from which we can launch our newest platform investment.  We are excited and committed to rolling up our sleeves and working hard alongside the talented staff at Hynes right here in Ohio,” said Ki Mixon, a Partner at Resilience.

Resilience Capital Partners specializes in investing in middle market companies with $25 million to $250 million in revenues across a range of industries. The firm’s investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 40 companies under 23 platforms with over $2 billion in revenues. The firm is based in Cleveland (www.resiliencecapital.com).

“On behalf of the entire Resilience organization, we couldn’t be more pleased with the opportunity to partner with the Bresnahan family and build upon their 50 years of family ownership.  This Resilience investment will ensure this company, based in Ohio, the heart of the industrial Midwest, will continue to be an industry leader and provide support to its customers as they expand and grow both nationally and internationally,” said Steven Rosen, Co-CEO of Resilience Capital Partners.

2014 PEPD • Private Equity’s Leading News Magazine • 8-22-14

Freestone Partners has partnered with management and ORIX Corporate Capital to acquire Cyclone Steel Services, a provider of steel plate processing services.  Cyclone’s CEO, Steve Lesikar, will continue to run the company along with his existing senior management team, and he will continue to own a substantial share of the company.

Cyclone Steel Services specializes in precision cutting and value-added processing of steel plate for applications in the petrochemical and oil and gas industries.  Cyclone’s cutting capabilities include oxy-fuel, plasma and high definition plasma cutting technologies.  In addition, the company offers its customers several value-added secondary processes. Cyclone Steel Services is based in Houston (www.cyclonesteel.com).

Freestone Partners invests in companies in manufacturing, distribution, and commercial and industrial services. The firm’s geographic focus for platform investments is the southwestern and southeastern United States.  The firm is based in Houston (www.freestonepartners.com).

ORIX Corporate Capital is a business unit of ORIX USA Corporation and provides debt and equity capital to small and mid-sized businesses in all industry sectors throughout the United States. For information on ORIX Corporate Capital click HERE.

Quarton Partners, a specialty investment banking firm serving privately held and publicly traded companies as well as private equity firms, acted as the exclusive advisor to Cyclone.   Quarton assists its clients with mergers and acquisitions, private capital raising, restructurings, valuations, and other financial advisory services.  The firm is headquartered in Birmingham, MI (www.quartonpartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-11-12