Associated Steel Group, which was formed by Chicago private equity firm Promus Equity Partners, has acquired Alliance Steel. No financial terms were disclosed for the transaction. SunTrust Bank and LBC Credit Partners supported the acquisition with funding. Based in Oklahoma City, Alliance Steel is a maker of metal buildings and related components.
Chicago, Illinois, January 21, 2014 – Promus Equity Partners, LLC (“Promus”), headquartered in Chicago, IL, in partnership with Jon Vesely, an independent sponsor, are pleased to announce the acquisition of Alliance Steel, Inc. (“Alliance”). The company was acquired through Associated Steel Group, LLC (“ASG”), an entity formed for the purpose of consolidating the metal building industry, an effort that began in August 2012 with Mississippi-based ACI Building Systems, LLC (“ACI”) and continued with the acquisition of Georgia-based AIM Metals, LLC in February 2013.
Led by President Larry Thomas, Alliance is a fully integrated manufacturer of metal building systems, structural steel and components, focused primarily on serving non-residential customers in Oklahoma, Texas and other surrounding states. The company operates from a 415,000 square foot facility in Oklahoma City with 340 employees. Tim Ritchie, ASG’s CEO, commented, “Alliance has long been considered one of the premier companies in the industry. Larry Thomas’ 35 years of market knowledge and successful leadership will enhance our footprint and provide best practices across all operating divisions. We are excited about the market momentum in Alliance’s region, as well as the broader non-residential construction market, and look forward to continuing the high level of service our customers expect.” With the acquisition of Alliance, ASG will become the fourth largest company in the metal building system industry.
SunTrust Bank provided a senior credit facility and LBC Credit Partners provided a second lien facility. Terms of the investment were not disclosed.
About Promus Equity Partners
Promus Equity Partners is a private equity investment firm affiliated with Promus Holdings, a multi-family asset management firm based in Chicago, Illinois with approximately $500 million under management among its affiliated entities. Promus targets healthy, lower-middle market companies with EBITDA of $15 million or less. Members of the Promus team are proven investors with wide-ranging experiences over numerous economic cycles in a variety of industries. As a family office with a flexible investment mandate, they think creatively and allow each opportunity to guide their investment structure and duration absent the constraints imposed by traditional private equity funds. Their success relies upon partnering with managers and business owners to collaboratively develop plans to accelerate growth and increase value. As a family of investors, they share a common vision to build a portfolio of outstanding businesses. For more information about Promus Equity Partners, please contact Steve Brown at [email protected]
About Associated Steel Group
ASG, based in Nashville, Tennessee was organized to acquire companies in the metal building and roofing systems industry. ASG is led by Tim Ritchie, CEO, and Jon Vesely, Chairman of the Board, who both have experience consolidating the metal building industry. For information about Associated Steel Group, please contact Tim Ritchie at [email protected]
Alliance specializes in the construction of complex, highly-engineered low-rise metal buildings which it manufactures at its Oklahoma City facility and either ships the materials to customer job sites or makes them available at the plant for customer pick-up; Alliance does not provide on-site erection services. Metal buildings manufactured by Alliance are used in a wide number of applications, including office and retail buildings, warehouses, manufacturing plants, churches, schools, agricultural buildings and aircraft hangers. For more on Alliance, please visit www.allianceokc.com.