ESP, headquartered in Houston, is one of the leading stainless steel master distributors and premier mill support centers in North America. The Company is a key supplier of specialty stainless bar products, value-added processing, and inventory management for service center customers serving a wide range of desirable end markets, including oil and gas, chemical processing, aerospace, power generation and heavy equipment production. For more information visit www.epsteel.com.
Lone Star Investment Advisors is a Dallas-based private equity firm that specializes in acquisitions and recapitalizations of middle-market businesses with strong growth potential. The firm invests in a wide variety of industry sectors including manufacturing, industrial, distribution, business services, and energy. Lone Star specializes in investments that will create employment opportunities in the communities in which they are located, and maintains a strong reputation for driving economic growth in low-income areas. For more information visit www.lonestarinvestmentadvisors.com.
SPS, headquartered in Manhattan, Kansas, is one of the largest metals service center companies in North America. SPS has steel distribution, fabrication, processing and ERW tube manufacturing operations located in five U.S. states, as well as in Monterrey, Mexico. For more information visit www.spsci.com.
We were very fortunate to work with three excellent organizations in ESP, Lone Star, and SPS during this transaction. Everyone was committed to the deal, dedicated substantial resources, and negotiated in good faith to enable a quick and friendly transaction that enabled both the buyer and seller to maximize the strength of an exceptionally strong stainless steel market.
Commenting on the transaction, Arthur Hollingsworth, Managing Partner of Lone Star, said "This represents a successful exit for Lone Star after a 15-year ownership, and we’re very glad to have found a great home for Energy Steel with SPS. We were also truly pleased with Montrose Advisors’ representation and glad to continue our long relationship with Dan Sullivan. He represented ESP in 2007 when we bought the business, and again this year as we sold it. Dan ran an efficient process, got us a great price, and brought the right buyer for ESP - one we wouldn't have found on our own."
SPS Chief Strategy Officer John Simon said “We are pleased and excited to welcome ESP into the SPS family, and very happy with how this transaction played out. SPS has worked with Montrose on several transactions now. Dan’s steel industry-specific approach and deep knowledge of the companies in it provide real value. He understands what buyers and sellers are looking for and excels in matching up the right parties. If Dan brings us an opportunity we review it seriously, knowing he won’t waste our time and resources.”
Montrose Advisors served as exclusive financial advisor to ESP in this transaction. This transaction highlights our 20-year track record of advising clients in the metals processing and service center sectors through their most important transactions. Montrose Advisors' deep sector knowledge, longstanding relationships throughout the industry, and analytical skill helped ensure the success of this transaction.
If you would like more information about Montrose Advisors or our role in this transaction, please contact Dan Sullivan using the contact information below.