Z Capital Partners LLC has agreed to acquire Atmosphere Annealing AA and NitroSteel LLC, collectively known as Premier Thermal Solutions LLC, from Gerdau S.A. No financial terms were disclosed. With plants in Ohio, Michigan and Indiana, AA is a provider of metal heat treating and related services to various markets while Wisconsin-based NS is a provider of ferritic nitrocarburized steel bars.
New York, March 16, 2017 — Z Capital Partners, L.L.C. (“Z Capital”), the private equity management arm of Z Capital Group, L.L.C., a leading global alternative investment manager focused on opportunistic, value-oriented private equity and credit funds, today announced an agreement to acquire Atmosphere Annealing L.L.C. (“AA”) and NitroSteel L.L.C. (“NS”), collectively known as Premier Thermal Solutions, L.L.C., (“PTS”) from Gerdau S.A. (NYSE: GGB), a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. The transaction is expected to close within 30 days. Terms of the transaction were not disclosed.
With plants in Ohio, Michigan and Indiana, AA provides metal heat treating and related services to various end-markets, including automotive, trucking, oil and gas, agriculture, heavy construction and military. With a plant in Wisconsin, NS provides environmentally friendly, cost-effective, long-lasting and superior-performing ferritic nitrocarburized (“FNC”) steel bars that are utilized primarily in fluid power applications in the agricultural, construction, mining, marine, utility and automotive end-markets.
With Z Capital’s financial backing, PTS plans to expand its metal heat-treating service offering by adding capabilities organically, through strategic acquisitions and by diversifying into additional end-markets.
“PTS has substantial capacity, a strong management team and capabilities that, with increased focus and investment in sales, marketing and customer service resources, can be leveraged to attain both organic and strategic growth,” said James Zenni, Founder, President and Chief Executive Officer of Z Capital Group. “We are excited to welcome PTS to the Z Capital family and look forward to utilizing our expertise to further accelerate the company’s growth.”
“We are thrilled to work with Z Capital as we continue to enhance and expand our product and service offerings to better serve our customers and increase our market share,” said Steve Wyatt, Director of PTS. “Z Capital’s financial strength, acumen and operational expertise make them the ideal partner for PTS and we are excited to work with their talented team in the years to come.”
About Atmosphere Annealing
AA was started in the late 1970s with its first plant in Lansing, Michigan. Today, AA has four plants in Lansing, Michigan, Canton, Ohio and North Vernon, Indiana. AA has substantial metallurgical expertise and provides metal heat treating (including annealing, normalizing and quenching & tempering) and related services primarily to the automotive, light and heavy truck, agriculture and energy sectors. Parts processed by AA provide durability and dependability required for mechanically strenuous jobs. AA is on the approved vendor list for a vast majority of OEMs, Tier I and II suppliers.
NitroSteel is the only domestic provider of nitro-carburized bars and tubes in the 13-24’ range. NitroSteel’s nitro-carburizing process is a “green” alternative to chrome (i.e., no hazardous by-products) and provides improved wear resistance, better lubrication retention, dent resistance, increased service life and can last up to three times longer. Products are used in machinery and equipment in outdoor settings in the agricultural, energy, industrial, mobile equipment and military end-markets.
About Z Capital Partners
Z Capital Partners, L.L.C. is the private equity management arm of Z Capital Group, L.L.C, a leading global alternative investment manager with approximately $2.3 billion of regulatory assets under management with offices in New York, NY; Lake Forest, IL; and Zurich, Switzerland. Z Capital Group manages opportunistic, value-oriented private equity and credit funds. Its investors include prominent global sovereign wealth funds, endowments, pension funds, insurance companies, foundations, family offices, and other institutions in North America, Europe, Asia, Africa and the Middle East. For more information, please visit www.zcapgroup.net.
Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. In Brazil, it also produces flat steel and iron ore, activities that are expanding its product mix and boosting its competitiveness. It is also the largest recycler in Latin America and around the world it transforms each year millions of tons of scrap into steel, reinforcing its commitment to sustainable development in the regions where it operates. Gerdau’s shares are listed on the São Paulo, New York and Madrid stock exchanges.