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December 13, 2013

Prophet Equity To Acquire Assets of Keywell L.L.C.

CHICAGO, IL.--(BUSINESS WIRE)— The U.S. Bankruptcy Court in the Northern District of Illinois today approved a sale order pursuant to which KW Metals, LLC, an entity formed and controlled by Prophet Equity, a private equity firm based in Southlake, Texas, is authorized to complete the purchase of assets of Keywell L.L.C., an Illinois limited liability company.

The transaction is scheduled to close on or about December 31, 2013 and thereafter the business will operate as Keywell Metals LLC. Keywell Metals will be headquartered in Chicago, IL, with collection and processing facilities located in West Mifflin, PA, Falconer, NY, Monroe, NC and Atlanta, GA.

Founded in 1924, Keywell L.L.C. is a leading supplier of recycled stainless steel, high-temperature alloys (”HTA”) and titanium in North America. Using its deep understanding of these metals, Keywell has established itself as a trusted value-added partner to aerospace metals and specialty steel producers. Customers rely upon Keywell’s supply relationships and metallurgy expertise to produce highly engineered metal grades that meet demanding end-user requirements.

Ross Gatlin, Managing Partner & CEO of Prophet Equity, said “We were first introduced to Keywell in 2009 and were favorably impressed with the management team and the history and positioning of the business. From 2009 to the present, we came to the view that Keywell is a well-managed and strategically strong business that experienced unprecedented difficulties due to the economic downturn and slow economic growth. Through our purchase of the business, we are excited about its future and look forward to providing opportunities for employees and continuing to play an important role for suppliers and customers.”

Gatlin also noted, “Our equity fund is specifically designed to bring new life to businesses like Keywell. We have a distinctive track record of providing both the capital and know how needed to not only preserve existing value, but also to provide the investment capital necessary to unlocking future value. We have a long history of expanding capacity and dramatically growing strong platforms like Keywell and are excited to work alongside the existing management team.”

About Prophet Equity LP

Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last fifteen years, Prophet Equity’s Principals have invested and managed over $2B of value creation across entities with over $4 billion in revenue. Our control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit or call us at +1.817.898.1500

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