FGM, Pacesetter Deal Finalized
By
Metal Center News Staff on
Oct 6, 2024 Flack Global Metals and Pacesetter Steel Service have completed FGM’s acquisition of a majority ownership stake in Pacesetter’s business. Terms of the deal were not disclosed.
The transaction is the final step in the extensive succession planning process undertaken by Pacesetter, as a result of which Pacesetter selected FGM as its partner based on FGM’s recognized leadership status in deploying risk management and hedging strategies for the benefit of its customers, the companies claimed. FGM’s investment thesis revolves around growing the Pacesetter platform while keeping Pacesetter a standalone vertical within the FGM platform.
The transaction is the third material investment completed by FGM within the past 18 months and its first addition of a distribution and processing service center to its portfolio of direct equity investments.
BofA Securities and Nelson Mullins Riley & Scarborough LLP advised Pacesetter on the transaction.
NSPS Metals LLC, Pacesetter’s joint venture with Nippon Steel Trading Americas, Inc., an affiliate of Nippon Steel, is not a party to the transaction, and its assets, including NSPS’s service center facility located in Houston, will not be included in the new FGM-Pacesetter partnership.