NEW YORK A large private
equity firm is poised to enter the scrap market with its
proposed acquisition of a Philadelphia scrap processor.
Boston-based Audax Group has
expressed interest in acquiring nonferrous scrap processor
Thalheimer Brothers Inc., according to a recent filing with the
Federal Trade Commission.
The groups Audax Private
Equity Fund IV LP was granted early termination of the waiting
period required under the Hart-Scott-Rodino Antitrust
Improvements Act, according to an FTC notice filed in
The companies didnt
respond to a request for comment, but a source familiar with
the development confirmed that both groups are in talks.
"(Audax has) been looking at a
scrap acquisition for a long time. They were trying to do a
scrap deal and looked at two other companies before this. They
dug into them but decided against (the first two companies),"
the source said. "They see scrap as a real industry and like
the consolidation strategy."
The source suggested that Audax
has no intentions of shaking up management at Thalheimer should
the deal be completed.
According to its website, Audax
Private Equity was established in 1999 as a source of equity
capital for small-cap and lower-middle-market companies. It is
now investing out of its third private equity fund, which has
more than $1 billion in capital.