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Platinum Equity Portfolio Company Ryerson Completes Buyout of China Joint Venture
Home / News / Platinum Equity Portfolio Company Ryerson Completes Buyout
CHICAGO, July 12 -- Ryerson Holding Corporation ("Ryerson"), a leading distributor and processor of metals in North America, today announced that via its subsidiaries it has acquired Van Shung Chong Holdings' ("VSC") 20 percent stake in Ryerson China Limited, a joint venture between Ryerson and VSC formed in 2006. Ryerson China Limited is now a wholly-owned Ryerson subsidiary. Terms of the transaction were not disclosed."Increasing our investment and acquiring the joint venture outright reflects our commitment and confidence in the Chinese market," said Frank Munoz, President of Ryerson China. "With our substantial footprint in China, Ryerson will continue its growth strategy to effectively serve the local Chinese market as well as our international and U.S. customers." Ryerson China Limited was formed as a partnership with VSC and was previously known as VSC-Ryerson China Limited.Ryerson originally held 40 percent of the joint venture when the partnership was formed and subsequently increased its ownership to 80 percent in the fourth quarter of 2008. Ryerson China Limited is based in Shanghai and operates processing and service centers in Guangzhou, Dongguan, Kunshan, Tianjin and Wuhan, along with a sales office in Shanghai. Ryerson is the only North American metals service center with a significant presence in China, the largest metals consuming market in the world.Ryerson expects its presence in China will continue to grow."As we solidify and strengthen our presence in the Chinese market we will evaluate new locations in the region that present compelling growth opportunities and allow us to better serve our customers," said Mr. Munoz.About RyersonRyerson is a leading North American processor and distributor of metals, with operations in the United States, Canada and Mexico, as well as in China. The Company distributes and processes various kinds of metals, including stainless and carbon steel and aluminum products.About Platinum EquityPlatinum Equity is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.Contact:Terence R. Rogers, EVP and CFO of Ryerson Inc. +1-773-788-3720, terence.rogers@ryerson.com
Covad and Megapath Announce Merger Agreement
Home / News / Covad And Megapath Announce Merger Agreement
Merger Will Combine Nation’s Largest IP Broadband Footprint with Complete Suite of Managed Services San Jose and Costa Mesa, CA, March 31, 2010 – Covad Communications Company, a leading national provider of IP broadband services, and MegaPath Inc., a leading provider of managed IP data, voice and security services in North America, today announced an agreement to combine the operations of Covad and MegaPath.Pending federal and state regulatory approvals, the transaction will create one of the largest managed service local exchange carriers (MSLEC) in the United States. The combined businesses will have the largest Ethernet, DSL and T1 footprint in North America and be the only MSLEC capable of providing a full range of Internet, voice, security and VPN services nationwide.“This transaction brings together two industry leaders who will focus on expanding service offerings and distribution channels to further our leadership positions in the SMB, enterprise and wholesale markets,” said D. Craig Young, MegaPath CEO and the new Executive Chairman of the combined businesses. “By leveraging the strengths of each company, we will provide customers and partners with expanded expertise, broader innovative services and a powerful network that simplifies the way they communicate and conduct business online.”“We will continue to provide innovative services and superior automation to our wholesale partners, and by adding MegaPath’s leading managed service offerings, we will further enhance the value we deliver to the market,” said Pat Bennett, CEO of Covad , who will continue as Chief Executive Officer. “The combination of these two companies creates a powerful new business model that provides users and partners with the industry-leading connectivity and services they require to support their critical business communications needs.”Covad offers IP broadband services in more than 4,400 central offices nationwide through its commercial and wholesale distribution channels. Covad wholesale partners include leading providers such as AT&T, Verizon Business and Sprint; MegaPath delivers value-added communication services, including hosted VoIP, managed security, MPLS VPNs for connecting multiple sites, and SSL VPNs for connecting remote users and business partners. MegaPath distributes its services via a large direct sales force and channel sales partnerships, and has over 19,000 direct SMB and enterprise customers.By combining Covad’s robust network infrastructure with MegaPath’s wide selection of products and value-added services, the transaction promises to provide the companies’ partners and customers with a superior selection of cost-effective IP voice, data communications and security solutions.“This is a great deal for Covad and MegaPath stakeholders and customers, creating an industry leader with the agility, expertise and resources to address customers’ rapidly growing and changing communications needs,” said Johnny Lopez, partner at Platinum Equity, which owns Covad. “With such complementary businesses, partners and customers will quickly see new services and capabilities that provide them even greater value, while the company realizes improved efficiencies and greater profitability, and enhanced opportunities for growth through acquisition.”The combined businesses will be owned by Platinum and MegaPath investors. Terms of the deal were not disclosed. The transaction is subject to federal and state regulatory approvals and is expected to close by the end of Q3 2010.About CovadCovad is a leading national provider of integrated voice and data communications, combining broadband solutions with mission-critical service and support to create a superior customer experience. The company provides a wide range of access and hub aggregation services, including Ethernet, DSL, and T1. Covad manages a robust, next-generation IP/MPLS network that efficiently delivers integrated voice, video, and data solutions. With an expanded footprint supported in part by more than 4,400 COs, Covad broadband services are currently available across the nation in 45 states and 240 metropolitan statistical areas (MSAs) and can be purchased by approximately 11 million businesses, representing over 60 percent of all U.S. businesses. Covad is located at 2220 O’Toole Avenue, San Jose, CA 95131. www.covad.com.MegaPath Contact:Kristine GagerWelz & Weisel Communications(703) 218.3555kristine@w2comm.com Covad Contact: Christian PinkstonPinkston Group(202) 423.6611Pinkston@pinkstongroup.com Platinum Contact: Dan WhelanPlatinum Equity(310) 282.9202dwhelan@platinumequity.com
Michigan Governor Jennifer Granholm Tours Platinum Equity Portfolio Company
Home / News / Michigan Governor Jennifer Granholm Tours Platinum Equity
Longtime Four Winns employee Wendy Hunt remembers feelings of uncertainty and devastation when the boat manufacturer’s then-parent company filed for bankruptcy in June 2009.Hunt, a Lake City resident who joined Four Winns’ scheduling department in 1998, thought she was out of a job when her receptionist position was subsequently eliminated."They always called me the voice of Four Winns," she recalled.But she avoided being laid off after the company transferred her to its maintenance department.Kristy Prince of Cadillac also kept her job in the wake of the bankruptcy filing. She’s worked for Four Winns for 24 years."I clean boats and do a little bit of everything else," Prince said.Both women expressed hope for the company’s future after hearing speeches from Gov. Jennifer Granholm, Four Winns president Jeff Olson and Louis Samson of Platinum Equity, Four Winns’ new owner.The Four Winns cruiser plant was the site of what was dubbed a "celebration" following the Cadillac Area Chamber of Commerce’s Governor’s Breakfast Wednesday morning.Olson took Granholm on a tour of the plant before they and Samson addressed those gathered, including Four Winns’ employees, Cadillac officials and local business leaders."This is a good news day," Granholm said.Samson outlined what led Platinum to purchase Four Winns, Wellcraft - which was brought to Cadillac from Florida about two years ago - and several other boat companies from Genmar Holdings, Inc., during a bankruptcy auction in January. In the weeks following the sale, Platinum announced that another former Genmar brand, Glastron, is moving to Cadillac this summer from Little Falls, Minn., and the Michigan Economic Development Corp. revealed that Four Winns will receive $27.1 million in state tax credits over the next eight years.It’s projected that about 2,300 jobs will be created during the next eight years because of Platinum’s investment in Cadillac.Since Platinum came on board, Four Winns has recalled nearly 100 workers and expanded from one to three production lines, Samson said. Glastron president Mike O’Connell said his company will be hiring laid-off Four Winns employees when it moves to Cadillac in June. Other than a small sales/brand management team, Glastron is bringing "very few" Little Falls employees, he said.Platinum decided to bring Glastron to Cadillac for a variety of reasons, including the Four Winns workforce and because the private equity firm was impressed with Four Winns/Wellcraft’s craftsmanship and manufacturing standards.Granholm praised the workers, saying the Platinum deal wouldn’t have happened without them. She said her staff and Four Winns’ partnerships with the Cadillac Industrial Fund, Cadillac Area Manufacturers Association and the Chamber were instrumental in keeping Four Winns in Cadillac.She recalled meeting Platinum CEO and founder Tom Gores, a Flint native and Michigan State University graduate, during tax credit discussions. She noted Gores’ passion for reviving Michigan’s economy."There was just something different about this, this company,’ Granholm said.Samson said Olson had told him before the event that with three boat manufacturers based in Cadillac by the summer, Cadillac will be the site of the world’s largest boat manufacturing facility, based on volume. Although the marine industry still is struggling, Samson said Platinum is committed to expanding its interest in it."With the proper care and with the proper investment ... we can be successful again," he added."The market is recovering," Samson said. "We’re trying to do right by our dealers and by our customers. But it’s a process."Both Hunt and Prince said they were impressed by the optimistic tone of the speeches."It was refreshing after going through what we went through to hear that," Prince said."They give you the feeling of hope," Hunt said.kverhage@cadillacnews.com As previously reported in the Cadillac News ...June 2009 - Minneapolis-based Genmar Holdings, Inc., then owner of Four Winns, files for Chapter 11 bankruptcy.November 2009 - Irwin Jacobs resigns as Genmar Holdings’ CEO to better position himself to make a bid for the company as it works to emerge from bankruptcy.December 2009 - Four Winns president Jeff Olson meets with employees to tell them the company, as well as the other Genmar boat brands, will be auctioned off the following month as part of bankruptcy proceedings. Platinum Equity, a Beverly Hills, California-based private equity firm, is deemed the lead bidder for Four Winns assets and Cadillac operations.Jan. 8, 2010 - Platinum Four Winns is the winning bidder at $70 million for most of Genmar’s assets, including Four Winns, Wellcraft and Glastron.Jan. 13 - U.S. Bankruptcy Court approves sale despite request by unsecured Genmar creditors to reject all prevailing bids.Feb. 1 - Four Winns sale to Platinum closes. Later that month, Platinum officials announce Glastron’s move to Cadillac.Feb. 25 - The Michigan Economic Grant Authority approves a $27.1 million state tax credit over the next eight years to Four Winns, LLC, to encourage Platinum to continue to invest in Cadillac. Platinum’s investment is expected to create more than 2,300 jobs over the next eight years.
Platinum Portfolio Company Ryerson Set to Profit in Industry Consolidation
Home / News / Platinum Portfolio Company Ryerson Set To Profit In Industry
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Platinum Portfolio Company Ryerson and Industry Consolidation
Home / News / Platinum Portfolio Company Ryerson And Industry
Ryerson, a Platinum Equity portfolio company and Chicago based metal distributor and processor with service centers in the U.S. and Canada, is a key player in the ongoing consolidation of the 1,200-company, $153 billion metal services industry.Platinum acquired Ryerson in October 2007, and is preparing an initial public offering that may give it cash to fund purchases.Ryerson is a key player in the ongoing consolidation of the 1,200-company, $153-billion metal services industryRyerson is the second largest player in the industry. In January, it acquired Texas Steel Processing Inc. for $11.4 million and will likely continue to pursue further strategic acquisitions involving smaller companies, many of which are private or family-owned and have struggled after the global recession cut demand.Ryerson has over 160 years in the metals industry and handles millions of tons of steel annually.Full Story...
Matrix Telecom Acquires Excel Telecommunications from Denham Capital
Home / News / Matrix Telecom Acquires Excel Telecommunications From Denham
DALLAS and BOSTON – March 15, 2010 - Matrix Telecom Inc. (“Matrix”), a Platinum Equity company and provider of voice and data services to small and medium enterprise and residential customers across the United States, and Denham Capital (“Denham”), an energy - and commodities-focused global private equity firm, today announced they have signed a definitive agreement for Matrix to acquire substantially all the customer relationships and assets of Irving-based Comtel Telcom Assets LP, operating as Excel Telecommunications (“Excel”) from Denham. Financial terms of the transaction were not disclosed.“By acquiring Excel, we are demonstrating our commitment to making Matrix the highest-quality, most affordable choice for wholesale voice services in the telecommunications industry,” said Charles G. “Chuck” Taylor, Jr., President and CEO of Matrix. “This acquisition builds on other recently announced Matrix initiatives to broaden its domestic and international wholesale voice services offering.”Excel Telecommunications provides a suite of high quality, integrated voice and data communications products and services to residential, commercial and carrier customers. Based on its Veraz softswitching platform, it has developed and deployed next generation, IP-based voice and data services. Excel provides Matrix with complementary network coverage, state-of-the art switching, efficient back-office technologies, highly loyal customers and an experienced, customer-centric work force. “Matrix specializes in smoothly integrating complex telecom acquisitions. It was extremely important to Excel to identify an acquirer in whom our customers and employees can be confident,” added Jerry McGee, CEO of Excel. “In addition to its wholesale strategy, the Matrix business and residential customer bases closely mirror those of Excel, with similar service bundles and customer support models geared to customer satisfaction and loyalty. Matrix and Excel are a great fit.”The acquisition is Matrix’s third in the last four years, having successfully integrated the small business group of Global Crossing in 2006 and certain assets of the former Trinsic Communications in 2007.“Matrix has a strong track record seamlessly integrating businesses and the ability to grow through strategic add-on acquisitions,” said Brad Holtmeier, Vice President at Platinum who is leading the investment. “This acquisition is great news for Excel’s valued customers and further demonstrates Matrix and Platinum’s commitment to industry leadership.”“Since Denham’s acquisition of Excel in late 2005, the management team has transformed the company into an attractive platform for future growth,” said Bill Zartler, Managing Partner and head of Denham's Energy Infrastructure Group. “As with other recent exit transactions Denham has concluded, including the sale of SunRay Renewable Energy and Trinity Coal, Matrix saw the value in the platform that management and Denham created, and is well-suited to take Excel to the next level.”The transaction is expected to close in the second quarter of 2010 and is subject to, among other conditions, receipt of approvals of the FCC and applicable state regulatory authorities. About Matrix Telecom, Inc.Matrix Telecom, Inc., (www.matrixbt.com), a Platinum Equity company, operating as Matrix Business Technologies and Trinsic, Powered by Matrix, is an integrated telecommunications provider serving consumers and small and medium size businesses nationwide. Matrix is licensed as a facilities-based CLEC and Long Distance Provider in 49 states plus the District of Columbia. It has 200 employees with headquarters in Dallas, TX and operations in Rochester, NY and Atmore, AL.About Platinum EquityPlatinum Equity (www.platinumequity.com), a global M&A&O® firm specializes in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, industrials, logistics, manufacturing, and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.About Excel TelecommunicationsExcel Telecommunications (www.excel.com) is a leading, facilities-based provider of a rich suite of high quality, integrated voice and data communications products and services to residential, commercial and carrier customers.Excel offers a wide range of switched and dedicated voice and data services, including domestic and international direct-dial and dial-around long distance, toll-free, wholesale pre-paid long distance and local services, as well as carrier transport, conferencing, hosting and other value-added services, to commercial, carrier and residential customers. Based on its Veraz softswitching platform, Excel has developed and deployed its next generation, IP-based voice and data services, including SIP trunking, hosted IP PBX, IP VPNs and dedicated data services.The Company owns and operates a robust, nationwide Class IV/V VoIP-FGD enabled network that forms a mesh of connectivity across 9 major U.S. metropolitan markets. Consisting of long haul fiber paths, numerous routers, servers and switching equipment, the network provides on-net coverage of virtually every U.S. LATA. Excel also maintains interconnect agreements with more than 300 carriers.About Denham Capital:Denham Capital is a leading global private equity firm, with offices in Boston, Houston, Short Hills, New Jersey and London. With approximately $4.3 billion of invested and committed capital, Denham makes direct investments in all segments of the energy and commodities value chain, including oil and gas, mining, timber, power, carbon assets and energy-related infrastructure and services. The firm invests globally, with investments currently in the US, Canada, South America, Europe, Russia/CIS, Asia and Australia, and across all parts of the capital structure and all stages of the corporate and asset lifecycle, from development projects to mature, operating businesses. Denham typically targets investments in the $50 million to $250 million range. For more information about Denham Capital, visit www.denhamcapital.com. Denham Capital does not provide investment advisory services to the public. Denham Capital Management “SM” is a trademark of Denham Capital Management LP.For Further Information: Matrix Telecom, Inc. Kevin P. Gormankgorman@matrixbt.com(585) 530-3714Denham Capital Gina M. Soricegsorice@cjpcommunicaitons(212) 279–3115 , ext. 243Platinum EquityDaniel Whelandwhelan@platinumequity.com(310) 282-9202
Platinum Equity Principal Mark Barnhill to Speak at Private Equity Landscape Event
Home / News / Platinum Equity Principal Mark Barnhill To Speak At Private
March 3rd, 2010 4:00 pm to 8:00 pm · Briefing and Cocktail Reception · The Beverly Wilshire Hotel, Beverly Hills, CA Private Equity Landscape: Trends and Developments to Follow in 2010This event will feature speakers from Platinum Equity, Paul Hastings, Alvarez & Marsal, and other industry leaders.The briefing will include thoughts and discussion on how the events and changes in the market over the last year have transformed the way we seek, evaluate and pursue investments.Seizing Opportunities During The Downturn: Time For ReinventionWhat Will Debt Financing Look Like In The Future?Which Investing Strategies and Financing Models Will Survive?Making Portfolios The Priority: The Importance of Effective Portfolio ManagementJoin us at the Beverly Wilshire for the briefing and a cocktail reception immediately following.Details and registration information here...
Platinum Portfolio Company Ranger Boats on Boating Magazine Top Ten List
Home / News / Platinum Portfolio Company Ranger Boats On Boating
Ranger Boats, an Arkansas based manufacturer of premium fiberglass fishing boats, is featured in the Boating Magazine annual feature of the best boats of the year. Hundreds of models were judged under stringent selection criteria with Ranger’s all-new Z521 Comanche earning the prestigious honor of placing on the Top Ten list.Platinum acquired Ranger Boats as part of its February 2010 acquisition of Genmar, a suite of recreational and fishing boat brands.The Z521 was recognized for its features that appeal to both competitive anglers and performance enthusiasts. Editors praised the speed and stability of the vessel, along with the boat’s running surface and smooth "floating on air" ride.Boating Magazine's editorial staff wrote how the Z521 pampered anglers, allowing them to "focus on the tournament winnings, not the details of running a boat or managing gear." Interior features, including a completely redesigned console, make this possible.Ranger Boats, which is owned by Platinum Equity, is the nation’s largest manufacturer or premium fiberglass fishing boats. Since 1968 Ranger Boats has earned its reputation for its commitment to building the highest quality and best performing boats on the water.Read the full article...
Platinum Equity to Combine Pomeroy IT Solutions, Inc. and OAO Technology Solutions
Home / News / Platinum Equity To Combine Pomeroy It Solutions Inc And Oao
Los Angeles, CA, Hebron, KY and Greenbelt, MD — February 23, 2010 — Platinum Equity announced today that it will combine Pomeroy IT Solutions, Inc. and OAO Technology Solutions, Inc. (“OAOT”), creating a single global IT solutions provider with increased scale, broader reach and expanded service offerings.“Pomeroy and OAOT are both recognized industry leaders with unique and complementary product and service offerings,” said Jacob Kotzubei, the partner at Platinum that is leading the combined Pomeroy and OAOT investment. “This combination makes perfect sense and will create new opportunities for each company’s clients, business partners and employees.”Platinum acquired Pomeroy in November 2009 through a public-to-private transaction and acquired OAOT in January 2010 from an affiliate of J.F. Lehman & Company and the other OAOT stockholders.Pomeroy President and CEO Christopher C. Froman will lead the combined organization.“The combination of our two companies is an excellent opportunity to broaden our services portfolio and to expand our global reach,” said Christopher C. Froman, President & Chief Executive Officer of Pomeroy IT Solutions, Inc. “With offices in the U.S., Canada, and Europe we are in a better position to serve the needs of our clients.”The combined businesses will operate as Pomeroy IT Solutions and will be headquartered at Pomeroy’s existing facilities in Northern Kentucky. They will also retain ownership of the OAO Technologies brand and may continue using it for the purpose of marketing certain product and service lines.A transition team of Pomeroy and OAOT staff is working with Platinum’s in-house operations specialists to combine the two businesses. According to Mr. Froman, that team is intensely focused on seamless execution and maintaining the highest levels of customer service.“Our 3500 employees are committed to the continued support of our clients and partners, and I look forward to the achievement of our strategic initiatives,” said Mr. Froman.Mr. Kotzubei emphasized that long-term growth potential was the driving force for Platinum in bringing the two companies together.“We’re creating a powerful platform with extraordinary potential for growth, both organically and potentially through additional acquisitions,” Mr. Kotzubei explained. “We have the financial resources, operational capabilities and industry experience necessary to create a leading enterprise with exciting opportunities for employees and extraordinary value for customers.”About Pomeroy IT Solutions, Inc.Pomeroy IT Solutions is a leading provider of advanced technology services focused on IT Outsourcing, Infrastructure Services, Consulting Solutions, Product Procurement and Logistics, and IT Staffing. Pomeroy's consultative approach delivers information technology solutions through the disciplines of ISO9000, ITIL, HDI, and PGMP practices, enabling Fortune 1000 corporations, government entities, and mid-market clients to increase productivity, reduce costs, and improve profitability. For more information, go to www.pomeroy.com.About OAO Technology Solutions, Inc.OAOT (www.oaot.com) is a global leader in Managed IT Services and Solutions to Fortune 500 corporations, global outsourcers and government agencies. The Company's expertise includes applications outsourcing, data center and infrastructure management and staffing solutions. Headquartered in Greenbelt, Maryland, our 1,600 worldwide employees are located throughout the United States, Canada and Europe.About Platinum Equity, LLCPlatinum Equity is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. For more information, go to www.platinumequity.com.
Platinum Equity Portfolio Company San Diego Union-Tribune Names New Editor
Home / News / Platinum Equity Portfolio Company San Diego Union Tribune Names New Editor
Platinum Equity portfolio company the San Diego Union-Tribune named Jeff Light to take the reins as the newspaper’s top editor. Light brings almost three decades of journalism experience to the Union-Tribune and is known for pushing newspapers toward online innovation.Before joining the Union-Tribune, Light was with The Orange County Register where he was Vice President of Interactive and oversaw the paper’s Web sites, which doubled in traffic and audience in the past two years. At the Union-Tribune, he will be Vice President and Editor.Union-Tribune President and Publisher Ed Moss said Light was chosen because of his energy, multimedia innovation, commitment to quality, and experience in print and online journalism. Former editor Karin Winner retired in December 2009. She held the post for 15 years and was with the newspaper for 34 years.Full story...
