Chicago/Cleveland – June 19, 2018 – Brown Gibbons Lang & Company (BGL) acted as the lead financial advisor to Central Steel & Wire (OTCPK: CSTW), a leading metal service center with a strong reputation as a valued supply chain partner, in connection with its pending sale to Ryerson Holding Corporation (Ryerson) (NYSE: RYI). The transaction was announced on June 5, 2018, and is expected to close during the third quarter of 2018, subject to regulatory approval.
The transaction values Central Steel & Wire at an enterprise value of $140,000,000 on a cash-free, debt-free basis with a normalized level of working capital.
Steve Fuhrman, Central Steel & Wire’s President and Chief Executive Officer said, “The BGL team did a great job keeping our process on track. This was a complicated transaction and took quite a while to determine the best shareholder value. BGL helped us every step of the way and their guidance gave our team time to tend to their regular workload, while allocating the proper time to the transaction. We appreciate their experience and expertise in dealing with the many interested parties and are satisfied with the outcome for our shareholders.”
Completion of the transaction has been approved by the board of directors of both companies and following Central Steel & Wire’s entry into the merger agreement, Central Steel & Wire shareholders holding approximately 73% of Central Steel & Wire’s issued and outstanding voting shares executed a written consent approving the merger agreement and the transaction. The transaction is subject to customary closing conditions as well as the termination or expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the absence of any legal restraint challenging the validity of the transaction.
Central Steel & Wire is a leading metal service center with locations across the Central and Eastern United States. Central Steel & Wire has a rich history spanning more than 100 years, offering custom solutions utilizing value-added processing and a full-line of metals products including carbon, aluminum, stainless, and brass and copper.
Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China. Founded in 1842, Ryerson employs around 3,700 employees in approximately 100 locations.
Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Diversified Industrials, Metals & Metals Processing, and Real Estate. BGL has offices in Chicago, Cleveland, Philadelphia, San Antonio, and San Diego in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.