LOS ANGELES (May 10, 2006) – Platinum Equity announced today that it has completed the acquisition of PNA Group, Inc., a leading processor and distributor of steel products with annual revenue of approximately $1.2 billion. The transaction was announced in February.
The seller is TUI AG, the largest travel and tourism company in Europe, which has been divesting non-core industrial holdings in order to focus on its core tourism and shipping sectors.
The PNA Group processes steel and distributes it to fabricators, manufacturers and distributors, primarily in the United States. The company comprises three independent business units:
– Feralloy, headquartered in Chicago, which provides hot-rolled coiled steel, galvanized and other rolled steel, and hot-rolled pickle;
– Delta Steel, headquartered in Houston, which provides steel structural beams, channels, tubes, plates and hot-rolled coiled steel;
– Infra-Metals, headquartered in Atlanta, which provides steel structural products.
Each of the three businesses, and the group as a whole, are strong competitors in their respective markets. That makes the PNA Group a very attractive platform for growth in the steel services industry, said Jacob Kotzubei, senior vice president for mergers and acquisitions at Platinum.
“We have great confidence in the future of the PNA Group,” Mr. Kotzubei said. “Each of the three businesses has solid fundamentals and an experienced team, and we look forward to working with them to build enterprise value.”
The addition of PNA Group significantly increases Platinum’s operations in the steel services sector. The firm also owns ESM Group Inc., acquired in December 2005, which provides a variety of products and services to the steel production industry, including desulphurization and secondary metallurgy services, caster segment maintenance, equipment design and manufacture, as well as the supply of specialty magnesium to non-steel related industries.
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, manufacturing, and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has acquired more than 60 businesses with more than $12 billion in aggregate revenue at time of acquisition.