Distributor Tri Star Merges with Producer Pinnacle Metals
Tri Star Metals, a Carol Stream, Ill.-based distributor of stainless and aluminum bars, wire and rod, has completed its merger with Pinnacle Metals, a wire and bar, stainless steel and nickel alloys production company located in Freeport, Ill. With the addition of Pinnacle Metals’ manufacturing facility, the merger establishes Tri Star Metals as a fully integrated wire mill with multiple shipping locations and global production facilities.
“The addition of Pinnacle Metals marks the completion of Phase I in Tri Star Metals’ North American expansion strategy,” says Dan Buba, CEO of Tri Star Metals, a subsidiary of Germany’s Hagener-Feinstahl. “We believe the combination of its manufacturing experience and facilities with our existing reputation as an international manufacturing and distribution organization will ultimately enhance our joint ability to serve the world’s market.”
The merger expands Tri Star Metals’ North American footprint via the addition of a 130,000-square-foot manufacturing facility in Freeport, Ill. The company will immediately increase manufacturing capacity at the new facility by using 35,000 square feet to add equipment that supports new growth markets, such as annealing and drawing capacity for stainless and nickel alloy rod, bar and wire.
Tri Star Metals believes the increase in production will allow it to better serve customers by establishing a global production platform with manufacturing facilities in North America as well as Europe.
Pinnacle Metals will operate as Tri Star-Pinnacle Metals through year-end, when it will assume the Tri Star Metals name. Three executives from Pinnacle Metals will join the management team: Bill Pigott will serve as vice president of manufacturing, Nick Pigott will become vice president of stainless and nickel alloys, and Kurt Payton will be vice president of the Eastern division in the new company.
“This merger will increase our global buying power to 35,000 metric tons per year, enhance our profile among producing mills, and empower us to better negotiate terms and pricing on raw materials to meet customer needs and help them maintain competitiveness in the worldwide market,” says Tri Star Metals President Jay Mandel.