Private Equity Firm Juniper Capital Management and Bluehenge Capital Partners Make Growth Capital Investment in Metal Resources Holdings, LLC
(May 21, 2019)
Metal Resources Holdings, LLC is parent of two vertically integrated, complementary metal processing businesses – Andes Coil Processors, LLC and MRI Steel Framing, LLC; Juniper’s capital investment will support companies’ organic growth and strategic growth opportunities in current and expanded geographic markets
Juniper Capital Management (“Juniper”), a Dallas-based private equity firm executing control investments in growth-oriented companies within the manufacturing, industrial and infrastructure sectors, has partnered with Bluehenge Capital Partners, a Baton Rouge-based SBIC, to make a growth capital investment in Hinsdale, Illinois-based Metal Resources Holdings, LLC (“Metal Resources”). Through the strategic provision of capital, Juniper will support the continued development of Metal Resources’ two, vertically integrated metal processing subsidiary operations: Andes Coil Processors, LLC (“Andes”) and MRI Steel Framing, LLC (“MRSF”).
Andes is one of the premier independent toll processors operating in Texas and the North Central U.S./Great Lakes region. Andes provides toll steel coil slitting and cut-to-length processing, as well as receiving, warehousing and shipping services, for a wide range of steel distributors and manufacturers. Andes currently operates out of three facilities located in Lewisville, Texas; Dallas; and Gary, Indiana.
MRSF is a leading manufacturer of heavy-duty, cold-formed steel framing components – primarily metal framing studs, tracks, frame channels and flatstock – for the commercial and multifamily construction markets in the North Central U.S. Operating out of a shared facility with Andes in Gary, Indiana, MRSF produces primarily “true gauge” products, which it sells on a direct basis to large commercial interior and drywall contractors – a distribution method that is unique in the industry.
“We are eager to support the continued growth of Metal Resources and its subsidiary companies, led by the outstanding executive management team already in place, in an industry segment that has tremendous potential,” said Lou Grabowsky, Juniper’s co-founding partner. “Metal Resources fits perfectly within our framework of investment criteria and helps expand Juniper’s operational portfolio into the center of the country, which is right in our sweet spot. We believe this partnership is truly a win-win for both teams, and even more importantly, helps Metal Resources better anticipate and meet the needs of its current and prospective customers.”
Metal Resources was represented by Glaucon Capital Partners, LLC for investment banking services associated with the transaction. The deal was financed by Comerica Bank and Bluehenge Capital Partners. Bluehenge is also an equity investor in the transaction.
Juniper will provide strategic guidance of Metal Resources to foster both organic and potential acquisitive growth, as well as operational improvements for both subsidiaries. The executive leadership team of Metal Resources will remain in place, with Bill Wilson continuing to serve as CEO; Frank Eberwein continuing as COO of Metal Resources and president of MRSF; and Howard Pena continuing as CFO of Metal Resources and president of Andes. Altogether, Metal Resources’ management team has more than 130 years of collective experience in the metal industry.
“As a result of Juniper’s and Bluehenge’s significant investment, we now have a meaningfully enhanced capacity to expand our product and service offerings, in order to better serve existing customers and also reach new customers in expanded markets,” said Wilson. “We believe our complementary business goals and aligned vision for the future will further strengthen our operational capabilities, while also supporting the acceleration of our organic growth in key geographic markets and potential pursuit of strategic growth opportunities, as appropriate.”
Metal Resources represents the fourth portfolio addition for Juniper’s burgeoning investment platform. Juniper’s initial platform investment closed in 2017 with its acquisition of Ballard Marine Construction, a turn-key industrial services company serving a variety of clients in the hydropower, tunneling, industrial, nuclear, water utilities and marine industries worldwide. In 2018, Juniper announced the creation of its Infrastructure Services Group, LLC (ISG), in partnership with ORIX Mezzanine & Private Equity and LionsWing Capital Partners LLC, to conduct strategic acquisitions in the water infrastructure sector. ISG’s first two acquisitions were Vermont-based Green Mountain Pipeline Services and Pennsylvania-based Mr. Rehab Sewer Systems, both of which are engaged in the rehabilitation of municipal and industrial sewer systems in the U.S. Northeast.