Earlier published reports indicated that Cronimet Corp. also was bidding to purchase the company's assets.
A U.S. bankruptcy court has approved a sale order for KW Metals LLC, an entity formed and controlled by the Texas-based private equity firm Prophet Equity, to complete the purchase of assets of Illinois-based Keywell LLC.
Keywell is a supplier of recycled stainless steel, high-temperature alloys and titanium metals.
Earlier published reports indicated that competing stainless steel recycling company Cronimet Corp., Aliquippa, Pa., also was bidding to purchase Keywell’s assets.
The transaction with KW Metals is scheduled to close on or about Dec. 31, 2013. Following the acquisition, the company will operate as Keywell Metals LLC and will be headquartered in Chicago, with collection and processing facilities in West Mifflin, Pa.; Falconer, N.Y.; Monroe, N.C.; and Atlanta.
Pelham Smith, Prophet Equity’s managing director, says, “We were first introduced to Keywell in 2009 and were favorably impressed with the management team and the history and positioning of the business. From 2009 to the present, we came to the view that Keywell is a well-managed and strategically strong business that experienced unprecedented difficulties due to the economic downturn and slow economic growth. Through our purchase of the business, we are excited about its future and look forward to providing opportunities for employees and continuing to play an important role for suppliers and customers.”
Ross Gatlin, CEO and managing partner of Prophet Equity, adds, “Our equity fund is specifically designed to bring new life to businesses like Keywell. We have a distinctive track record of providing both the capital and know how needed to not only preserve existing value, but also to provide the investment capital necessary to unlocking future value. We have a long history of expanding capacity and dramatically growing strong platforms like Keywell and are excited to work alongside the existing management team.”