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Pritzker Organization in $1-billion deal for TMS

Keywords: Tags  TMS International, Tube City IMS, Pritzker Organization, Onex, Tom Pritzker, Raymond Kalouche, I. Michael Coslov, Blue Point Capital Partners Wellspring Capital Management


PITTSBURGH — The Pritzker Organization will purchase TMS International Corp. in a $1-billion all-cash deal.

The transaction is expected to close in the fourth quarter following clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

TMS stockholders will receive $17.50 in cash for each share, a 12.4-percent premium to the stock’s Aug. 23 closing price of $15.57 before the deal was announced.

"With this transaction, we are pleased to be able to maximize stockholder returns while positioning ourselves to continue to deliver exceptional value for our customers and expand our global operations as a privately held company," TMS president and chief executive officer Raymond Kalouche said.

Tom Pritzker, chairman and chief executive officer of the Chicago-based investment firm, said he was impressed with the company’s leadership. "TMS is a leading provider of mill, procurement and logistics services to the steel industry, with an exceptional management team and a proven track record," he said. "We are delighted to have the opportunity to participate in and support the growth of the business over the long term."

TMS has had a history of moving between the public and private arena. Toronto-based private equity firm Onex Corp., which holds a 60-percent interest in TMS International, purchased its share for $622 million in January 2007, at which time the company became privately held. Onex took the company public on the New York Stock Exchange in 2011 (amm.com, April 14, 2011).

The Glassport, Pa.-based mill services provider, whose subsidiaries include Tube City IMS Corp., went through two private equity transactions prior to the Onex deal. I. Michael Coslov, former chairman of Tube City, sold a large interest to Cleveland-based Blue Point Capital Partners in 2003; two years later, Blue Point resold its interest to New York-based Wellspring Capital Management LLC.


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