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 stocks Aug. 23 closing price of $15.57 before the
deal was announced.
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 companys 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).
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