Steel LLC, which fabricates steel bridge components,
anticipates growth in spending on U.S. infrastructure
improvements and expansion into heavy-structure projects other
than bridges, one director said.
Veritas was formed
recently when private equity management firm Atlas Holdings LLC
acquired PDM Bridge LLC and its facilities in Palatka, Fla.,
and Eau Claire and Wausau, Wis. (
amm.com, Nov. 6).
Its too early to
say if Veritas will seek out acquisitions in the bridge
building sector, "but its safe to say were excited
about investment in U.S. infrastructure and its fair to
say we are looking to grow organically or through
acquisitions," director Richard Phillips said.
70,000 tons of steel bridges per year using structural and
plate products, he said. This volume "places us as the
third-largest bridge builder in the country."
inherits PDM Bridges 70-year history as a market leader
that fabricates and erects complex bridgesarch, truss and
bascule bridges that are usually over water, according to
Phillips, who was recently executive vice president and chief
financial officer of structural steel fabricator Hirschfeld
"We also do plate and
tub girder bridges for highway overpasses," which typically
consume 4,000 to 5000 tons of steel, but "some use 10,000 tons
or more. We do them all," he said. "Plate girder bridges are
plain Jane (compared with complex types), but if the bridge is
over 125 feet long and straight, its a good candidate for
ranged from $1 million to as high as $30 million. About average
would be $3 million to $5 million, Phillips said. "We have
capacity to do projects as large as $50 million to $75
million," he said.
A key attraction of
PDMs sale to Greenwich, Conn.-based Atlas, he said, is
that Veritas now has the clean balance sheet and financial
support to bond higher-value projects.
Veritas will look to
become more involved in heavy steel projects other than
bridges. "We certainly have that capacity," he said, citing a
launch pad PDM built for the National Aeronautics and Space
Administration (NASA) in Merritt Island, Fla. "Well look
for product line and capacity growth, among other
opportunities," he said.
Veritas will retain
400 PDM employees. The purchase was supported by the United
Steelworkers union and Ironworkers Shopmens Local 811.
"This acquisition is a win-win for the (union) and for the
future of the steel fabrication industry," USW District 2
director Michael Bolton said.