We are pleased to announce the sale of substantially all of the operating assets of Standard Steel & Wire, Inc. (SS&W or the "Company") to Alliance Steel, LLC.
Standard Steel & Wire Corporation was established in 1920 and purchased by its current owners in 1981. SS&W is a steel service center that provides slitting, gauge correction, rolling mill and edging services to prepare coils for a variety of customers. The Company processes cold rolled, hot rolled pickled and oiled, hot-dip galvanized, electro-galvanized steel and other products from prime steel. Specialty grades can include spring steel, aluminized steel and tin-coated steel. Steel products include cold and hot rolled in drawing, commercial and tempered quality, often in restricted gauge tolerances.
During 2014 & 2015, increases in the amount of imported steel to the U.S. and stagnant demand resulted in a dramatic decrease in the price of steel. The company's financial performance suffered as a result. In August 2015, the Company hired Fort Dearborn Advisors to explore a sale of the Company. The current owner had reached retirement age and wished to exit the business.
Fort Dearborn utilized its investment banking expertise and worked with the management team to create a transaction strategy. The strategy called for a vigorous sale process while managing the business through the challenging operating environment. Fort Dearborn quickly developed marketing materials and a targeted list of potential acquirers. Fort Dearborn's marketing efforts yielded multiple indications of interest. After plant visits, initial due diligence, and detailed discussions, Fort Dearborn assisted the owners in selecting the best potential acquirer based on strategic fit, deal structure and speed to close. SS& W agreed to sell substantially all of the operating assets and select equipment to Alliance Steel.
In order to successfully complete investment banking transactions like the Standard Steel & Wire deal, Fort Dearborn draws on its expertise in capital markets and a comprehensive suite of consulting and investment banking services designed specifically to serve middle market companies. Please contact us for proven middle market investment banking expertise, especially in "story" transactions where our operating skills lend additional value. We look forward to working with you.
Other Professionals who worked on the transaction include:
*Mike Garvey, CFO, Alliance Steel
*Mark J. Kosminskas, Kelly, Olson, Michod, DeHaan & Richter, LLC, Counsel to the Seller
*Juan Carlos Espinoza-Forlenza, Quarles & Brady LLP, Counsel to the Buyer