Platinum Completes PNA Sale

Platinum Equity has completed its sale of PNA Group Holding Corp., an Atlanta-based steel processor and distributor, to Reliance Steel & Aluminum Co. (NYSE:RS). The deal was valued at approximately $1.1 billion. Platinum had acquired the company from Germany's TUI AG in 2006, and had been originally considering an IPO.

 

PRESS RELEASE

 

Platinum Equity announced today that it has completed the sale of portfolio company 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.

 

The divestiture transaction was previously announced in June. Platinum acquired PNA Group in May, 2006 and created substantial value in the business through a combination of operational initiatives and add-on acquisitions. PNA's revenue in 2007 was approximately $1.6 billion, up from approximately $1.2 billion in annual revenue when Platinum acquired the business.

“PNA's extraordinary value today is a reflection of strong leadership, hard work and an unrelenting focus on operational excellence,” said Tom Gores, Chairman and CEO of Platinum Equity. “PNA was an outstanding investment for Platinum and our investors, and will be a valuable asset to Reliance Steel & Aluminum.”

 

In divesting the business, Platinum executives said their success with the PNA investment demonstrates the importance of a hands-on operational approach in the current economic environment.

“This environment demands real hands-on operational skills,” said Jacob Kotzubei, the Platinum partner who led the PNA transaction. “You can't leverage your way out of a problem, or rely on financial engineering to create a higher exit multiple. You have to be able to roll up your sleeves, execute on the ground to improve operations in a comprehensive way, and implement a growth strategy that creates real enterprise value. Platinum has the resources and the track record to execute that kind of operational strategy, and this investment, among others, demonstrates the success of that model.”

 

About Platinum Equity

Platinum Equity (www.platinumequity.com) is a global M&A&O