October 9, 2008
Platinum Equity to Purchase SCM Metal Products From Gibraltar
Platinum Equity announced today it has signed a definitive agreement to purchase SCM Metal Products, Inc. from Gibraltar Industries, Inc. (NASDAQ: ROCK) for an undisclosed amount. SCM is a global leader in the manufacturing and distribution of copper-based powder and pastes and copper oxide powders to a broad range of industries.
"This is a very exciting time for all of us at SCM," said Barton White, President of SCM. "We expect to have additional resources to grow our business both organically and through M&A transactions. There are many opportunities for growth in the U.S., China and the other export markets SCM serves in the powder metallurgy, chemical, electronics and industrial markets. I know that Platinum Equity shares my enthusiasm for the future and their support will be critical to our success."
"SCM is a market leader with a strong customer base and an experienced management team, and its parent company is divesting the business to focus on other core operating segments," said Mr. Kotzubei. "We have a strong track record of helping companies like SCM reach their full potential."
Mr. White noted that Platinum's resources and commitment to growth are a perfect fit for SCM.
"Platinum and I share the same vision for growing SCM through exceptional customer service, innovative product development and smart strategic investments," said Mr. White.
Platinum's acquisition of SCM is the latest in a series of successful investments Platinum has made in the industrial and metals services industry.
-- In August 2008 Platinum sold PNA Group, a leading processor and distributor of metals products, to Reliance Steel & Aluminum Co. (NYSE:RS) in a transaction valued at approximately $1.1 billion. Platinum acquired PNA Group in May 2006 and created substantial value in the business through a combination of operational initiatives and add-on acquisitions.
-- In October 2007 Platinum sold ESM Group, which supplies a variety of products and services to the steel industry, to SKW Metallurgie following a comprehensive reorganization in which Platinum established ESM as a strong standalone company.
-- In October 2007 Platinum acquired Ryerson Inc., one of the largest metals service center providers in North America with revenue of approximately $6 billion. Ryerson is currently in the process of executing a turnaround plan focused on improving customer service, achieving operational excellence and increasing profitability.
Bingham McCutchen served as legal adviser to Platinum Equity on the acquisition of SCM from Gibraltar.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O(R) firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
SCM Metal Products, Inc. (www.scmmetals.com) is a global leader in the manufacturing and distribution of copper based powder and pastes and copper oxide powders to a wide array of industries. SCM has manufacturing facilities in Research Triangle Park, N.C. and Suzhou, China.