ATLANTA, June 18,
2024 /PRNewswire/ -- Pacesetter Steel Service
(Pacesetter) and Flack Global Metals (FGM), two of the premier
metals distribution and service center platforms, announced today
that they have reached an agreement pursuant to which FGM will
acquire a majority ownership stake in Pacesetter's business. Terms
of the deal will not be disclosed. The transaction is expected to
close in July 2024.
After conducting an extensive succession planning process,
Pacesetter chose to partner with FGM based on FGM's recognized
leadership status in deploying risk management and hedging
strategies for the benefit of its customers. Other factors that
influenced the selection of FGM include FGM's investment and
business philosophies, which are based on deep industry expertise,
a strong organizational culture, and history of
successful M&A. FGM's investment thesis revolves around
growing the Pacesetter platform while keeping Pacesetter a
stand-alone vertical within the FGM ecosystem.
Founded in 1977 by Steve Leebow, Pacesetter's current Chief
Executive Officer, Pacesetter has deep connections with a number of
industries, such as HVAC, refrigeration, construction, and
transportation, to which it provides premier steel coil, slitting,
cutting to length, blanking and toll processing services. FGM is an
industrial ecosystem comprised of metals distribution (Flack Metal
Supply), risk management and hedging services (Flack Capital
Markets), international metals trading (Flack Metals Trading) and
direct equity investments (Flack Manufacturing Investments).
Pacesetter will be the first distribution and processing service
center added to the FMI portfolio of companies, as prior
investments have focused on OEMs who use flat rolled steel as their
primary input.
"We were thrilled when Pacesetter approached us about its
succession planning. Adding a service center as respected as
Pacesetter to our mix is an obvious fit, considering that metals
distribution is one of FGM's core competencies. This
partnership will result in both organizations' customers getting
the best of both worlds," said Ben
Bucci, Flack Global Metals President. "On one hand, you have
the strong physical infrastructure of Pacesetter, well-known for
handling contractual business and complex supply chains. On the
other hand, you have FGM, offering access to one of the
industry's most innovative platforms that provides extensive supply
options through its proven risk management and hedging
services."
With its headquarters in Atlanta,
GA, Pacesetter has service center locations in Atlanta, Chicago and Houston. Pacesetter is known for its
exceptional customer service, value-focused customer programs and
supply chain management, which have allowed it to build
long-standing relationships.
"Flack's long-term view investment horizon was the first quality
that really set them apart from the VC and PE firms who were
interested in investing in us," said Del Land, Pacesetter
President. Steve Leebow,
Pacesetter's Founder and Chief Executive Officer, added, "Of
course, we knew FGM for its leadership in risk management and
hedging within the industry. But once we dug deeper, we also
realized how much experience it has with M&A activities and
innovative operations management. We quickly understood how FGM's
expertise on the financial side and our prowess on the physical
side could truly complement each other."
The acquisition of a majority stake in Pacesetter is the latest
example of FGM putting its capital to work, again proving that
its model—separating price from supply— works to reduce friction in
the marketplace and create enterprise value.
"This is the next step in our path to transform the metals
industry and set new standards for operational excellence,
strategic growth and cultural integration," said Jeremy Flack, Flack Global Metals Founder and
Chief Executive Officer. "We are solidifying FGM's position in
the marketplace, paving the way for future growth opportunities and
partnerships, and building a legacy of success, innovation and
resilience."
ABOUT PACESETTER
Founded in 1977, Pacesetter is headquartered in Atlanta, GA with service center locations in
Atlanta, Chicago and Houston (NSPS is a joint venture with Nippon
Steel America) that offer steel slitting, blanking, cut-to-length
and toll processing services. Pacesetter provides unrivaled value
to their customers through custom-tailored pricing solutions,
inventory management programs and supply chain management
systems.
ABOUT FLACK GLOBAL METALS
In 2010, Flack Global Metals (FGM) launched with the mission to
reinvent how metal is bought and sold. The company has evolved into
a hybrid industrial organization specializing in the buying,
selling, manufacturing, trading and investing in flat rolled steel.
FGM is creating a steel ecosystem based on risk management and
hedging practices combined with a culture of innovation to reduce
friction and provide optionality in the volatile steel industry,
ultimately increasing enterprise value for all members.
CONTACT:
Patty Rioux
ODEA Group,
LLC
312.893.5163
patty@teamodea.com
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SOURCE FLACK GLOBAL METALS