GulfStar Group Announces the Sale of Steel Products, Inc. to Steel Pipe & Supply Company, Inc.
CONTACT:
Tom Hargrove
GulfStar Group, Inc.
Phone: 713-300-2050
Email: thargrove@gulfstargroup.com
HOUSTON (January 2010) GulfStar Group is pleased to announce the sale of Steel Products, Inc. (“Steel Products”) to Steel & Pipe Supply Company, Inc. (“Steel & Pipe”). GulfStar Group served as exclusive financial advisor to Steel Products in the transaction.
Steel Products, operating through its subsidiary, Storage & Processors, Inc. (“S&P”), provides handling, warehousing, trucking, and steel processing services, primarily for hot rolled steel coils. The Company operates from properties located within the Port of Houston Authority and Greensport Industrial Park serving local, regional and national customers. S&P was founded in 1979 and was acquired by its President, Joe Trapolino, in 1984.
Steel & Pipe, headquartered in Manhattan, KS, has provided services to its customers in the steel business since 1933. Steel & Pipe has service centers strategically located throughout the Midwest. Steel & Pipe’s services include full-service warehouses, cut-to-length flat roll and temper operations, a tube and pipe manufacturing facility and two comprehensive processing facilities.
Dennis A. Mullin, President of Steel & Pipe, said “The acquisition of S&P by Steel & Pipe will provide a platform for growth in the markets served by Steel & Pipe and growth of tonnage for the Houston Ports, while continuing to provide toll processing services for S&P’s customer base. Steel & Pipe is proud to add S&P to its business platform in Houston. The combination of the two companies will allow us to increase services to customers of both operations and elevate the presence of Steel & Pipe in our markets.”
“I am pleased that I was able to complete my Exit Strategy with a company like Steel & Pipe, not only will they be able to take S&P to the next level, but they will also provide continued employment opportunity for our outstanding employees and be able to further enhance the services to our loyal and valued customers,” said Joe Trapolino, President of S&P.
“We are extremely pleased to have had the opportunity to work with the management of S&P,” said Tom Hargrove. “We expect this to be a successful acquisition for Steel & Pipe and commend Steel & Pipe for their commitment in completing this transaction in an accelerated timeframe."
The GulfStar team on the transaction consisted of Managing Director Tom Hargrove and Associate Eric Danziger.
GulfStar Group is a leading middle-market investment and merchant bank headquartered in Houston, Texas. The firm specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 450 assignments across a variety of industries. Through its merchant banking affiliate the firm also makes equity and subordinated debt investments and serves as a transaction sponsor for acquisition-oriented growth strategies.
For additional information please email thargrove@gulfstargroup.com or call 713-300-2020.
GulfStar Group I, an affiliated entity, member FINRA - SIPC
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