NEW YORK Stahlschmidt
Inc. and Bouchard Group LLC have jointly acquired Esmark
Inc.s Esmark Technologies for an undisclosed sum.
The sale and licensing venture
between the two parties will be operated as a vertically
integrated industrial services company and continue to be
branded under Esmark Technologies.
Stahlschmidt, a privately held management services, investment
and asset management company, will own 60 percent of the
venture and manage its day-to-day operations, Esmark chairman
and chief executive officer James P. Bouchard told
Under the new business platform,
Esmark Technologies will be better equipped to explore new
opportunities in manufacturing as well as steel, especially in
relation to the Marcellus and Utica shale plays, Bouchard
Prior to the acquisition,
Pittsburgh-based Esmark "didnt have the management" to
evaluate new ventures, Bouchard said. "If its not in the
steel business ... but its a good investment and it makes
sense, then Esmark Technologies will (now) take a look at it."
He noted that "people probably run three to four solid deals by
us per month."
An immediate area of focus will
be in capitalizing on the shale gas phenomenon in the
Northeast, according to Uwe T. Schmidt, Stahlschmidts
chairman and chief executive officer.
"We find ourselves in the heart
of the Marcellus shale, and theres lots of development
there and more coming down the pipeline," he told AMM.
"We have the opportunity to put in place a depot and transfer
station that the fracking industry needs. Thats something
we are going to look at out of the box to utilize those
resources we have."
Earlier this month, Chicago
Heights, Ill.-based Esmark Steel Group LLC postponed the
restart of wholly owned subsidiary Ohio Cold Rolling
Co., citing economic uncertainty and volatility (
amm.com, Jan. 14). While a new restart date has
yet to be set, the Yorkville facilitywhich supplies substrate to Ohio Coatings
Co., a 50-50 joint venture with Seoul,
South Korea-based TCC Steel Co.likely will be restarted sometime
in the next year in time for the next round of annual contracts
in the tinplate market, Bouchard said.
Editor's note: This story was updated Jan. 23, 2012. Due to
a reporting error, it originally misstated the ownership of Ohio Cold Rolling