FOR IMMEDIATE RELEASE
LOS ANGELES (November 11, 2008) – Platinum Equity announced today it has completed the acquisition of SCM Metal Products, Inc. from Gibraltar Industries, Inc. (NASDAQ: ROCK). Details of the transaction were not disclosed. SCM is a global leader in the manufacturing and distribution of copper-based powder and pastes and copper oxide powders to a broad range of industries.
“Platinum is very excited about the acquisition of SCM Metals,” said Jacob Kotzubei, the Platinum partner who led the SCM transaction. “We are eager to collaborate with SCM’s management team, employees, customers and other partners to create new enterprise value and help SCM reach its full potential.”
On October 9, 2008 Platinum first announced it had signed a definitive agreement to purchase SCM from Gibraltar.
“Gibraltar sought to sell the SCM business in order to focus on core operating segments,” explained Kotzubei. “Together we formulated a divestiture solution to fit their needs and worked quickly to close the transaction. We’re now focused on transitioning the business into a standalone organization and we expect that to be a seamless process.”
Kotzubei also explained how the current economic environment is presenting great opportunities for Platinum.
“With the continued economic downturn and extreme market volatility, many sellers are under increasing pressure to address liquidity challenges and re-focus their business strategies. The opportunities for operations specialists who can react swiftly to changing market conditions and create value in non-core, underperforming or otherwise distressed assets are increasing rapidly,” explained Kotzubei. “Platinum’s agility, access to capital, and demonstrated skill in transitioning and operating businesses position us well to succeed in this market.”
In September 2008 Platinum Equity announced the closing of a $2.75 billion leveraged buyout fund focused on acquiring businesses that can benefit from Platinum’s operational expertise and resources.
About Platinum Equity
Platinum Equity (www.platinumequity.com) 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.
SCM Metal Products, Inc. (www.scmmetals.com) is a global leader in the manufacturing and distribution of copper based powder and pastes and copper oxide powders to a wide array of industries. SCM has manufacturing facilities in Research Triangle Park, N.C. and Suzhou, China.