LOS ANGELES, May 18, 2010 /PRNewswire/ – An affiliate of Aurora Capital Group today announced that it has completed the previously announced purchase of 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, which will be named New Star Metals Inc., is a leading Midwest operator of steel service centers. New Star Metals has four facilities engaged in the 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, commented, “This is an opportune time to invest in metal service centers, as the industry is still in the early stages of a recovery. We are seeing a large number of potential opportunities in the sector and are actively pursuing additional acquisitions that will benefit from access to capital and fit with New Star Metals’ focus on providing high value added processing services.”
Patrick Murley, CEO of New Star Metals, commented, “We are very excited about being part of Aurora Resurgence and look forward to growing our business in partnership with our suppliers and customers. We intend to vigorously pursue organic growth opportunities and strategic acquisitions that build upon the core strengths of New Star Metals’ existing businesses.”
About New Star Metals
New Star Metals, with headquarters in Chicago, IL, is engaged in the processing and distribution of value-added steel products with about 400,000 tons of current processing capacity serving customers across a variety of end markets in the Midwest. The company is comprised of four former divisions of the Northern Steel Group including Miami Valley Steel Service, Premier Resource Group, Electric Coating Technology, and U.S. Metals and Supply.