LOS ANGELES, April 28, 2010 /PRNewswire/ – An affiliate of Aurora Capital Group has entered into a definitive agreement to purchase four steel service center facilities including Miami Valley Steel Service, Premier Resource Group, Electric Coating Technology, and U.S. Metals and Supply from Northern Steel Group, a subsidiary of Severstal North America.
The new company will be a leading Midwest operator of steel service centers, with four facilities engaged in value added processing and distribution of sheet steel products including hot rolled, cold rolled, hot dipped galvanized, pre-painted and electrogalvanized steel. The company’s customers operate in a broad range of industries including construction, automotive, appliance, shelving, HVAC and stamping.
Anthony DiSimone, Managing Partner of Aurora Resurgence, the complex situations fund within Aurora Capital Group, commented, “We are excited about the growth opportunities available to the new company and look forward to supporting the management team and employees in building a leading operator of value added steel service centers.”
Patrick Murley, CEO of Northern Steel Group, will become the Chief Executive Officer of the new company upon closing. Mr. Murley, commented, “We are excited to be joining the Aurora family of companies. We believe Aurora Resurgence will be a valuable partner in helping us grow and expand in the metals processing industry.”
The transaction is expected to be completed during the second quarter of 2010 pending the expiration or early termination of the waiting period under the Hart-Scott-Rodino Act and other customary closing conditions.
About Northern Steel Group
Northern Steel Group, with headquarters in Chicago, Ill., is engaged in the processing and distribution of value-added steel products with about 1.0 million tons of current processing capacity serving more than 1,500 customers in the Midwest. Northern Steel Group is the holding company for seven businesses that operate under different names and employs 400 people. The group was acquired by Severstal through its purchase of Esmark in August 2008.