LOS ANGELES--(BUSINESS WIRE)--Platinum Equity announced today it has signed a definitive agreement to
purchase SCM Metal Products, Inc. from Gibraltar Industries, Inc.
(NASDAQ: ROCK) for an undisclosed amount. 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.
“This is a very exciting time for all of us at
SCM,” said Barton White, President of SCM. “We
expect to have additional resources to grow our business both
organically and through M&A transactions. There are many opportunities
for growth in the U.S., China and the other export markets SCM serves in
the powder metallurgy, chemical, electronics and industrial markets. I
know that Platinum Equity shares my enthusiasm for the future and their
support will be critical to our success.”
Jacob Kotzubei, the Platinum partner who led the SCM transaction,
explained that SCM is well suited for Platinum’s
operations-intensive approach.
“SCM is a market leader with a strong customer
base and an experienced management team, and its parent company is
divesting the business to focus on other core operating segments,”
said Mr. Kotzubei. “We have a strong track
record of helping companies like SCM reach their full potential.”
Mr. White noted that Platinum’s resources and
commitment to growth are a perfect fit for SCM.
“Platinum and I share the same vision for
growing SCM through exceptional customer service, innovative product
development and smart strategic investments,”
said Mr. White.
Platinum’s acquisition of SCM is the latest
in a series of successful investments Platinum has made in the
industrial and metals services industry.
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In August 2008 Platinum sold PNA Group, a leading processor and
distributor of metals products, to Reliance Steel & Aluminum Co.
(NYSE:RS) in a transaction valued at approximately $1.1 billion.
Platinum acquired PNA Group in May 2006 and created substantial value
in the business through a combination of operational initiatives and
add-on acquisitions.
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In October 2007 Platinum sold ESM Group, which supplies a variety of
products and services to the steel industry, to SKW Metallurgie
following a comprehensive reorganization in which Platinum established
ESM as a strong standalone company.
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In October 2007 Platinum acquired Ryerson Inc., one of the largest
metals service center providers in North America with revenue of
approximately $6 billion. Ryerson is currently in the process of
executing a turnaround plan focused on improving customer service,
achieving operational excellence and increasing profitability.
Bingham McCutchen served as legal adviser to Platinum Equity on the
acquisition of SCM from Gibraltar.
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.
About SCM:
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.