BOSTON, March 27, 2019 /PRNewswire/ --
CLIENT
Founded in 2007, United Steel Supply, LLC ("United Steel Supply"
or "the Company"), based in Austin,
TX, is the market-leading distributor of painted Galvalume®
steel coils to the independent steel roll former industry. The
Company's Galvalume® and other flat rolled steel product is used to
meet the growing demand for metal roofing and siding applications
in residential, commercial, industrial, and agricultural end
markets. The Company has served as a strategic partner to hundreds
of customers across the United
States, providing them with high-quality product and
reliable inventory availability and best-in-class customer
service.
The Company is headquartered in Austin, TX with distribution centers
strategically located in Mississippi, Indiana, Arkansas, and Oregon.
SITUATION
United Steel Supply's founders created the market leading
distribution platform through innovative solutions and a focus on
putting customers first. The Company's revolutionary model allowed
for shorter lead times from suppliers, as well as just-in-time
services and guaranteed standard inventory availability for its
customers. This transformative approach to working with its
suppliers and customers, further supports and fosters growth of the
industry they serve. After completing two acquisitions at the
beginning of 2018, the founders identified further opportunity to
accelerate their vision and growth with the right strategic
partnership.
ENGAGEMENT
G2 has served as a long-term strategic advisor to United Steel
Supply and as the exclusive financial advisor for this process,
responsible for running a highly tailored, strategic, and efficient
recapitalization transaction process for the Company.
OUTCOME
The transaction was successfully executed through a sale of
United Steel Supply's majority interest to Steel Dynamics, Inc.
(NASDAQ/GS: STLD, "Steel Dynamics"), with an option to sell the
remaining interest to Steel Dynamics in the future. Steel Dynamics
purchased 75 percent of the equity interests of United Steel Supply
for $134 million, comprised of cash
consideration of $93 million and the
assumption of $41 million in
apportioned net indebtedness. Additionally, Steel Dynamics has an
option to purchase the remaining 25 percent equity interests of
United Steel Supply in the future.
Bret Curtis, President of United
Steel Supply, shared, "G2 has been our trusted advisory partner for
many years, supporting the execution of United Steel Supply's
long-term vision, as well as leading the exploration of several of
the Company's strategic initiatives. Throughout the course of this
most recent process and the duration of our relationship, G2 has
helped us to successfully navigate options and lead us through to
the best possible outcome. Their knowledge of our business, our
industry and the future potential of our platform was critical to
the success of the sale process, which was highly customized and
required significant hands on work specific to the partnership and
transaction ultimately completed with Steel Dynamics."
"The partnership between United Steel Supply and Steel Dynamics
is strategically compelling for both organizations. We feel
privileged to have had the opportunity to play an active role in
the successful outcome of this transaction," said Jeffrey Unger, CEO of G2. "Our relationship with
United Steel Supply is a terrific example of our strategy of acting
as an industry focused trusted advisor and partnering with
best-in-class founders and management teams."
The transaction will support the Company's growth initiatives of
expanding service and product offerings.
About G2 Capital Advisors
G2 Capital Advisors provides M&A, capital markets and
restructuring advisory services to the middle market. We offer
integrated, multi-product and sector-focused services by pairing
highly experienced C-level executives with specialist investment
bankers. We aspire to be the trusted advisor of choice to our
clients including corporations and institutional investors.
Securities offered through Western International Securities.
Member FINRA, SIPC. G2 Securities and Western International
Securities are separate and unaffiliated entities. This does not
constitute an offer to buy or sell securities.
For more information, visit www.g2cap.com.
CONTACTS ON THIS DEAL:
Jeffrey Unger, Chairman &
CEO: T: 617.918.7929 E: junger@g2cap.com
Victoria Arrigoni, Managing
Director, Industrials & Manufacturing: T: 617.918.7934 E:
varrigoni@g2cap.com
Peter Reed, Vice President,
Buy-Side: T: 617.918.7972 E: preed@g2cap.com
Connor Grogan, Senior Associate:
T: 617.918.7973 E: cgrogan@g2cap.com
Jake Cunnane, Analyst: T:
415.872.5249 E: jcunnane@g2cap.com
View original
content:http://www.prnewswire.com/news-releases/g2-transaction-united-steel-supply-llc-sells-75-interest-to-steel-dynamics-inc-nasdaqgs-stld-300819474.html
SOURCE G2 Capital Advisors