Platinum Equity Completes Purchase
of Ryerson, Reorganizes Management
Platinum Equity did not take long to enact major changes at Ryerson Inc., replacing Chairman and CEO Neil Novich and two other executives just five days after completing its purchase of the nation’s largest service center company.
Novich, plus former Chief Financial Officer Jay Gratz and Executive Vice President Gary Niederpruem, left the company in a reorganization of senior leadership. Robert Archambault, a partner at Platinum Equity overseeing the Ryerson investment, was named interim CEO.
“We appreciate their longstanding commitment to Ryerson, their professionalism and leadership, and we wish them great success in the future,” says Archambault about the three executives not retained during the ownership change.
Also in the reorganization, Stephen Makarewicz was appointed president and chief operating officer. He had been president of Ryerson South. Terence Rogers was promoted from vice president of finance to executive vice president and chief financial officer.
The company promised more details of the reorganization in the coming weeks. In the meantime, Archambault says, “our highest priority is to minimize any disruption to our customers, suppliers and business partners.”
“The change in ownership and reorganization gives us an opportunity to build even stronger working relationships with all of our business partners,” he adds. “I have encouraged every Ryerson employee to focus on improving service as our highest priority.”
Only five days earlier, Platinum Equity completed the acquisition of the Chicago-based company after Ryerson shareholders voted to approve the deal. Platinum Equity acquired all of the outstanding shares of Ryerson for $34.50 per share.
“Ryerson has a great history and also great potential,” says Tom Gores, chairman and chief executive officer of Platinum Equity. “Over the last several months our operations team has been working with Ryerson personnel on a renewal plan to help the company build value. We are very excited about its future.”
Platinum also owns PNA Group, another service center group serving the North American metals market with more than $1.5 billion in annual revenue.
“We have a good understanding of the metals service center sector, and are very confident that Ryerson will continue to thrive and grow as a leader in this space,” says Jacob Kotzubei, the Platinum Equity partner who led the Ryerson buyout.
IMS Hangs In Through San Diego Wildfires
The San Diego warehouse of Industrial Metal Supply Co. was out of the path of the devastating wildfires that ravaged the community in late October, though the distributor certainly felt the impact of their destruction.
The company remained open through the period, though largely out of a commitment to the community’s efforts at fighting the fires.
“Our owner (Neil Sherman) felt it was important that we were open in case anybody needed anything for repair,” says Megan Humpal of IMS, which has four operations in California and another in Phoenix.
Industrial Metal Supply also saw its business curtailed by the events, as the road closings prevented some deliveries and many of its customers were not in operation. Additionally, numerous employees were cut off from work.
Once the fires were under control, IMS expected to be a contributor to the massive rebuild that would take place. The company plans to provide materials at lower costs to give back to the community, Humpal says.
Also responding quickly to the crisis was the Alcoa Foundation, which contributed $50,000 to the Orange County, Calif., chapter of the American Red Cross for disaster relief efforts.
Penn. Steel Acquires Bethlehem Aluminum
Pennsylvania Steel Co. Inc., Bensalem, Pa., has acquired Bethlehem Aluminum Co., Allentown, Pa. Bethlehem Aluminum has been servicing the aluminum needs of the Lehigh and Delaware valleys for more than 50 years, offering an inventory of bars, shapes, tubing, sheet and plate products.
Company officials say the addition of Bethlehem Aluminum enhances Pennsylvania Steel’s position as the region’s most comprehensive metals supplier, with stocking locations in Bensalem, York and Allentown, Pa.; South Plainfield, N.J.; and Naugatuck, Conn.
Anderson Acquires Ferranti in Newark
Anderson Metals, Philadelphia, Pa., has completed the acquisition of Ferranti Steel and Aluminum, a metal distribution company in Newark, N.J.
Ferranti Steel and Aluminum is a distributor of carbon steel, alloy and non-ferrous bars and offers a variety of processing services to customers in New Jersey and the New York City area.
Anderson Metals operates five service centers in New Jersey, Pennsylvania and South Carolina.
Reliance Completes Metalweb Acquisition
Reliance Steel & Aluminum Co., Los Angeles, has completed its acquisition of Metalweb plc. Metalweb, headquartered in Birmingham, UK, has three additional service centers in England, located in London, Manchester and Oxford.
The company specializes in the processing and distribution of aluminum products for non-structural aerospace components and general engineering parts used in high-end industrial applications. Metalweb plc’s net sales for the fiscal year ended May 31 were approximately $53 million. The current management team will remain in place, with Derek Webb serving as managing director.
“We are very pleased to have Metalweb as part of Reliance and to have the opportunity to expand our European presence,” says David Hannah, Reliance chairman and CEO.
Specialty Metals Expands Ohio Facility
Specialty Metals Processing Inc., a toll processor of nonferrous metals, has begun a major expansion of its Hudson, Ohio, facility. The expansion will take Specialty Metals from 40,000 square feet to 160,000 square feet, and will house four new processing lines.
A custom-built 62-inch-wide wet coil-to-coil polish line, a 72-inch-wide high-speed cut-to-length line with edge trim, 96-inch-wide sheet buffer and a 72-inch-wide wet polishing/grinding line will be installed. The company also plans to refurbish its current 48-inch-wide cut-to-length line to offer edge trimming.
Specialty Metals Processing will close its Akron facility and relocate its current five sheet and plate finishing machines to the Hudson facility during the first quarter. The new facility will be operational by the fall of 2008.
Briefs
Misa Metals, West Chester, Ohio, has commissioned a precision strand extensioner slitting line from Herr-Voss Stamco, Callery, Pa. The line will process coils up to 60,000 pounds by 72 inches wide at a maximum speed of 2,000 fpm, with a material thickness range of 0.012 inches to 0.135 inches and from 35,000 to 50,000 psi yield strength.
Advanced Gauging Technologies LLC, Plain City, Ohio, has completed the commissioning of several AGT400 upgrades in three Steel Summit facilities. In Tennessee, three older GR200 thickness gauges were upgraded; in South Carolina, the company upgraded its GR2000 thickness gauge; and in Ohio, Steel Summit upgraded its second GR200 to an AGT400 thickness gauge and S.P.C. Reporting System.
JDM Steel Service Inc., Chicago Heights, held an open house at its Chicago Heights service center in September to showcase its newly installed SCS Coil Line built by Red Bud Industries. More than 60 guests from around the Midwest attended the event.
People
CEO David Hannah of Reliance Steel & Aluminum Co., Los Angeles, was elected to the additional role of chairman of the board. Hannah joined Reliance in 1981 and was promoted to president in 1995. “Dave has been an invaluable leader for the past 26 years and the company has prospered very well under his direction. He is essential to the future success of Reliance and will continue to guide the company’s outstanding management team going forward,” says Joe D. Crider, a director and previous chairman of the Reliance board. Crider, 78, will continue as a director until his term expires in May 2008.
Main Steel Polishing Co. Inc, Tinton Falls, N.J., has promoted George A. Bogan to CEO. Bogan has been with the company for 35 years and has served as president since 2001. He will replace current CEO Thomas J. Connell, who will step down from his position but remain with the company as a consultant.
Dean Blakeney was named CEO and Tony Negrelli was named president of Clinton Aluminum & Stainless Steel, Clinton, Ohio. Blakeney had been director of marketing for the aluminum rolled products division at Aleris. Negrelli joins Clinton from Alcoa’s global extrusions division.
Ron Lenhart has been named national marketing manager at Marmon/Keystone Corp., Butler, Pa. Lenhart will be responsible for promoting the company’s hollow structural and hot-rolled seamless tubing product line.
Yarde Metals, Southington Conn., has appointed Vice President Operations Matthew L. Smith to chief operating officer. Smith will oversee the company’s sales, operations and human resources departments.
