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| Client: |
TAD Metals, Inc. |
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| Situation: |
Following a five year effort to penetrate the northeast aluminum and stainless steel market via right-sizing existing operations and acquiring select regional facilities, the shareholder group of TAD Metals, a national service center based out of Monroe, New Jersey, made the decision to generate liquidity via the divestiture of the majority of its distribution facilities. Based on BGL’s experience in the metals market, and more specifically within the metals sub-sector of service centers, the TAD shareholder group engaged BGL to manage the sale process. |
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| Business: |
Headquartered in Monroe, New Jersey, TAD is primarily recognized as a stainless steel focused service center distributing sheet and coil products. More recently, TAD established a major presence in the Southwest region via strong growth in its stainless steel plate product line. TAD also distributes stainless steel, aluminum and other metals in pipe, bar, tube, extruded, and various structural forms. |
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| Client Objective: |
The primary goal of the TAD shareholder base was to undertake a marketing process that limited exposure of confidential information to a broad universe of potential acquirers. Secondarily, TAD shareholders expressed a desire to maintain ownership of their two facilities located in the southeastern region of the United States, while selling their five facilities located in northeast and southwest regions of the United States as well as Canada. |
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| Results: |
BGL approached a highly targeted group of service centers, receiving indications of interest from the majority of such parties. Ultimately, O’Neal Steel, the fifth largest service center in the U.S. and one of the more active acquirers in recent years, provided the most compelling proposal, financially, through its complimentary strategic fit with TAD, and its interest in enabling TAD shareholders to continue operating their southeast-based service centers. The acquisition of TAD will enhance O’Neal’s expertise and growing strength in nonferrous product distribution and processing while also expanding its geographical reach and diversifying its product offering. |
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