Company will be significant provider of services to scrap and steel industry.
Mill Services Corp. has entered into a definitive agreement to acquire Glassport, Pa-based Tube City Holdings, LLC, a provider of specialty services to the global steel industry.
Wellspring Capital Management LLC, a New York-based private equity investment firm, along with key managers of both companies, will lead the investment. The transaction will close after required approvals have been obtained and other customary closing conditions have been satisfied. Terms of the deal were not disclosed.
Mill Services Corp. is the holding company formed by Wellspring when it acquired International Mill Service, a Horsham, Pa.-based provider of specialty services to the North American steel industry, earlier this year.
The new company will be a leader in metals recovery, scrap management, scrap agency, and ancillary services to the steel manufacturing industry. Michael Coslov, Tube City’s CEO, will serve as the new company's CEO. International Mill Service President & CEO Ray Kalouche will serve as president and COO of the International Mill Service/Olympic Mill Services division. Joseph Curtin, formerly president of Tube City, will serve as president and COO of the Tube City division.
"We are excited to have this opportunity to combine these two great companies. We think the opportunities for our customers and our employees are tremendous," said Coslov.
Kalouche added, "With our combined operations and experience we believe we will be a stronger and better partner with our customers."
"Our cultures are very complementary, and so we envision no issues with this transaction. It is really a merger of equals," said Curtin.
Tube City Holdings LLC provides outsourced purchasing, scrap optimization, slag processing, metal recovery, scrap management and a wide range of specialty services to the global steel industry.
International Mill Service, Inc. provides slag processing, metal recovery, materials handling, scrap management, surface conditioning ("scarfing") and a wide range of specialty services to the North American steel industry.