Author: Admin PE

Successful partnership with industry veterans yields 5x invested capital

May 3, 2018 -Southlake, TX – Prophet Equity (“Prophet”), a Southlake, TX-based private equity firm, completed the sale of its portfolio company, CID Resources, Inc. (“CID” or the “Company”) to Superior Uniform Group, Inc. (NASDAQ: SGC) for approximately $88.4 million in consideration, inclusive of approximately 150,000 shares of Superior common stock.

In June 2010, Prophet partnered with industry executive, H.P. Park, to establish CID, an industry-leading designer and provider of medical uniforms to specialty uniform stores and online medical uniform retailers. Since its founding, CID has built its WonderWink® brand into one of the leading medical uniform brands. CID also has licensed and built well-known brands Carhartt® and Vera Bradley® into successful medical uniform brands by creating innovative products targeting specific market segments.

Charles Collie, Managing Director at Prophet Equity commented, “We have thoroughly enjoyed our partnership with the CID team over the past eight years. CID’s focused product strategy, elite global sourcing, and customer-centric approach resulted in impressive annual sales and EBITDA growth rates of 71% and 60%, respectively. CID’s emergence as an industry leader is a reflection of the dedication of CID’s President, H.P. Park, and his outstanding executive team.”

“When we joined forces with Prophet Equity in 2010, we were convinced that the partnership would generate unique results, and we were right,” said H.P. Park. “Prophet Equity consistently provided the right level of strategic direction and support our team needed as we grew our business. I’m proud of what we and the Prophet Equity team have built, and I’m excited about our next phase of growth.”

“CID is another special situation investment success story for Prophet Equity,” added Ross Gatlin, Prophet’s CEO and Managing Partner. “Working collaboratively with the CID team to deploy our Holistic Value Creation™ (HVC™) process, the combined teams drove extraordinary operational and financial results while generating a uniquely positive outcome for our investors and all stakeholders. We thank H.P. and his team for their unwavering commitment and dedication to maximizing value, and we wish them all the very best.”

Piper Jaffray served as financial advisor and Jackson Walker as legal counsel to CID and Prophet Equity.

ABOUT PROPHET EQUITY

Prophet Equity 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 nineteen years, Prophet Equity’s Principals have invested in and managed over $2.5 billion of value creation across entities with over $6 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 www.prophetequity.com or call us at +1.817.898.1500.

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Acton Mobile triples EBITDA and invested equity in 3 years

December 20, 2017 -Southlake, TX – Prophet Equity (“Prophet”), a Southlake, TX-based private equity firm, completed the sale of its portfolio company, Acton Resources Holdings LLC (“Acton”) to Williams Scotsman (NASDAQ: WSC) for $235 million in cash.

In August 2014, Prophet acquired Acton, a regional modular space rental company with 18 branches in the eastern United States and Gulf Coast. In May 2015, Acton carved-out the mobile office fleet from Mobile Mini (NASDAQ: MINI), which doubled Acton’s fleet to over 21,000 units and allowed Acton to open 16 new branches throughout the United States over the following 12 months and transformed Acton from a regional competitor into one of the nation’s largest mobile office and storage rental companies.

Mike Sullivan, Senior Principal at Prophet Equity commented, “Acton’s transformation into a large national competitor is a testament to the leadership of Ingrid West, Acton’s President, and her impressive senior leadership team. Since the acquisition of the Mobile Mini fleet, the Acton team opened 16 new branches and transformed an underutilized fleet into a highly profitable business with significant cash flow.”

“Prophet Equity has been the ideal partner for Acton over the last 3 years,” said Ingrid West. “We have been a cohesive team as we planned and implemented the Company’s complicated strategic and operational path. It has been a pleasure to work with such a results focused and collaborative private equity group.”

“The Acton Mobile investment is a fantastic outcome for our investors and another example of tremendous results driven by Prophet Equity’s unique ability to partner with management teams and drive extraordinary results through our Holistic Value Creation™ (HVC™) process,” added Ross Gatlin, Prophet’s CEO and Managing Partner. “The powerful combination of Prophet’s unique strategic and operational tool kit, combined with an exceptionally experienced industry team, drove outstanding results for everyone involved.”

Oppenheimer & Co. Inc. served as financial advisor to Acton Mobile and Prophet Equity.

ABOUT ACTON MOBILE

Founded in 1968, Acton Mobile (www.ActonMobile.com) is a Baltimore, MD based provider of modular space rental services to the construction, energy exploration, commercial, education, healthcare, and government markets. With a fleet of more than 21,000 units and a branch network of 34 locations serving customers nationwide, Acton is dedicated to meeting customer needs. The company offers rental, sales, delivery, setup, maintenance services, pick up of mobile facilities, temporary mobile office trailers, and temporary storage units.

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LOUISVILLE, KY – Prophet Equity II LP announced today that on March 31st it acquired Derby Fabricating Solutions (“Derby” or the “Company”). Headquartered in Louisville, KY with manufacturing locations in La Vergne, TN, Sidney, OH and Cadiz, KY, Derby is one of the largest tier 1 and tier 2 automotive manufacturers of noise, vibration and harshness abatement components, as well as acoustic insulation and other components that reduce automobile interior noise levels.

“The entire Derby management team is excited about our new partnership with Prophet Equity,” said Derby President and COO Jason Kellams. “Prophet Equity’s data-driven approach aligns perfectly with Derby’s culture of safety and continuous improvement as we continue to capitalize on growth opportunities.”

“Derby is ideally positioned to be the go-to supplier of components to improve the quiet cabin experience,” commented Charles Collie, Managing Director at Prophet Equity. “As voice recognition technologies evolve alongside vehicle lightweighting trends, the demand for Derby’s capabilities will continue to grow. We look forward to partnering with Jason, Derby’s senior leadership team, and longtime board members, Shawn Sullivan and Alan Loyd, to support Derby’s strategic plan.”

“Given the growing consumer demand for a quiet interior experience, Derby is positioned to outperform the automotive market through all phases of the automotive cycle,” said Ross Gatlin, CEO & Managing Partner at Prophet Equity.

Charles Collie also remarked, “We are also excited to bring Prophet Equity’s long term automotive financing partnerships to Derby, which will provide liquidity and flexibility to support Derby’s growth.”

ABOUT DERBY FABRICATING SOLUTIONS

Founded in 1977 and headquartered in Louisville, Kentucky, Derby Fabricating Solutions is a leading manufacturer of die cut nonmetallic materials for automotive applications. Derby’s goal is to be their customers’ best supplier. They achieve this goal by emphasizing quality, delivery, innovative service and total cost management. Derby personnel have the technical knowledge to help customers select the most cost effective materials for their application. Their wide variety of processing methods and ability to quickly turn both prototypes and production tooling in-house allow responsiveness faster than the competition. Derby Fabricating Solutions was among the first in their industry to achieve TS 16949 Certification. Their continuous improvement programs are aimed at always exceeding the customer’s quality expectations.

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SOUTHLAKE, TX- The M&A Advisor announced the winners of the 11th Annual Turnaround Awards on Monday, January 30th. Prophet Equity and its carve-out of Total Plastics from A.M. Castle was named a winner for the Divestiture Deal of the Year Award (Over $50M to $100M). The awards were presented at a Black Tie Gala on Thursday, March 23rd at The Colony Hotel, Palm Beach, FL.

“Since 2002, we have been honoring the leading turnaround transactions, companies and dealmakers. Prophet Equity was chosen from over 300 participating companies to receive the award. It gives us a great pleasure to recognize Prophet Equity and bestow upon them our highest honor for distressed investing and reorganization firms and professionals,” said David Fergusson, Co-CEO and President, The M&A Advisor. “Prophet Equity represents the best of the distressed investing and reorganization industry in 2016 and earned these honors by standing out in a group of very impressive candidates.”

“We are honored to be selected as the recipient of the Divestiture Deal of the Year,” said Charles Collie, Managing Director of Prophet Equity. “Completing the complicated carve-out of Total Plastics from AM Castle in just seven weeks was a testament to our talented team at Prophet Equity and our 3rd party due diligence partners.”

“The acquisition of Total Plastics in a very compressed timeframe was another example of industry wide recognition of Prophet Equity’s unique ability to rapidly validate and purchase strategically viable platforms, in the midst of very complicated and extremely time sensitive transaction dynamics,” commented Prophet Equity’s CEO and Managing Partner, Ross Gatlin. “Total Plastics is now positioned perfectly to consolidate the highly fragmented value added plastics distribution industry.

The Awards Gala is a feature of the 2017 Distressed Investing Summit. The Summit took place on March 22-23 and featured 200 of the industry’s leading professionals participating in exclusive interactive forums led by a faculty of restructuring industry stalwarts and Bloomberg media experts. The Mar-A-Lago Club hosted our opening night reception and Palm Beach’s exclusive Colony Hotel was home to the Symposium, Awards Celebrations and our infamous Closing Party. For an event profile CLICK HERE.

ABOUT THE M&A ADVISOR

The M&A Advisor was founded in 1998 to offer insights and intelligence on M&A activities. Over the past nineteen years we have established the premier global network of M&A, Turnaround and Finance professionals. Today, we have the privilege of presenting, recognizing the achievements of, and facilitating connections between the industry’s top performers throughout the world with a comprehensive range of services. To learn more visit www.maadvisor.com

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Southlake, TX and Kalamazoo, MI – The M&A Advisor announced the winners of the 15th Annual M&A Advisor Awards on Wednesday, November 9th at the 2016 M&A Advisor Awards Gala to a jubilant, sold-out crowd at the New York Athletic Club, New York, NY. Prophet Equity was named the winner of the M&A Deal of the Year for transactions between $50 and $75 million for its carve-out of Total Plastics from AM Castle & Co.

“Since 2002, we have been honoring the leading M&A transactions, companies and dealmakers. Prophet Equity was chosen from over 615 participating companies to receive the award. It gives us great pleasure to recognize Prophet Equity and bestow upon them our highest honor for M&A firms and professionals,” said David Fergusson, Co-CEO and President, The M&A Advisor. “Prophet Equity represents the best of the M&A industry in 2016 and earned these honors by standing out in a group of very impressive candidates.”

“Being selected as the M&A Deal of the Year is a prestigious honor and a testament to the Prophet Equity team and our talented team of 3rd party advisors that allowed us to close a very complicated corporate carve-out transaction in just seven weeks,” said Charles Collie, Prophet Equity’s Managing Director. “Total Plastics is a strategically unique platform investment within the highly fragmented plastics distribution and fabrication industry.”

“The acquisition of Total Plastics in a very compressed timeframe was another example of industry wide recognition of Prophet Equity’s unique ability to rapidly validate and purchase strategically viable platforms, in the midst of very complicated and extremely time sensitive transaction dynamics,” commented Prophet Equity’s CEO and Managing Partner, Ross Gatlin. “Total Plastics is now positioned perfectly to consolidate the highly fragmented value added plastics distribution industry.”

The Gala is the premier celebration of the year for the industry’s leading M&A Dealmakers and was held in conjunction with the 2016 M&A Advisor Summit that featured over 500 of the industry’s leading M&A professionals participating in exclusive interactive forums led by over 45 M&A, media, academic, and industry stalwarts. In addition to the announcement of the 15th Annual M&A Advisor Award winners, Thomas Farrell, Executive Vice President, Generational Group was presented with the 2016 Lifetime Achievement Award; and Marshall Sonenshine, Chairman, Sonenshine Partners; Professor, Harvard University Law School; and John Reiss, Global Head of White & Case’s Mergers & Acquisitions Group received the 2016 Leadership Award.

To view a list of the 15th Annual M&A Advisor Award winners PLEASE CLICK HERE

ABOUT PROPHET EQUITY

Prophet Equity 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 sixteen years, Prophet Equity’s Principals have invested and managed over $2.5 billion 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 www.prophetequity.com or call us at +1.817.898.1500.

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April 13, 2016- KALAMAZOO, MI – Prophet Equity II LP announced today that on March 15th it acquired Total Plastics Inc. (“TPI” or the “Company”) from A.M. Castle & Co. (NYSE:CAS). TPI is one of the largest distributors and value added service providers of plastic sheet, rod, tube, film, tape and gaskets with 18 locations in the Midwest, Mid Atlantic, Northeast, Tennessee and Florida.

“Speaking on behalf of the entire organization, we couldn’t be happier with how this process played out and that we are now a portfolio company of Prophet Equity,” said Total Plastics President Tom Garrett. “This entire process has been a reaffirmation of the exceptional work we do here at every level. It afforded us a unique opportunity to spend time assessing our history, our guiding principles, our successes and our direction.”

Charles Collie, Managing Director at Prophet Equity, commented, “This is an exciting acquisition for Prophet Equity. Over the last 39 years, Total Plastics has grown into one of the largest distributors of plastic sheet, rod, tube, film and tape with significant fabrication capabilities. We look forward to partnering with Tom Garrett, the senior leadership team and the talented employee base to maximize Total Plastic’s tremendous potential.”

“TPI is a great addition to the Prophet Equity portfolio,” commented Ross Gatlin, Prophet Equity’s CEO and Managing Partner. “There are significant opportunities to grow TPI’s branch network and value added capabilities, and Prophet Equity is the ideal strategic and operational partner to support this growth.”

ABOUT TOTAL PLASTICS INC

Total Plastics is a leading distributor and fabricator of plastic sheet, rod, tube, film and tape. It is comprised on 15 stocking locations and two subsidiaries. TPI was founded in 1978 in Kalamazoo, MI, where it continues to make its headquarters. Today, TPI can be found in 10 states and maintains nearly half-a-million square feet of fabrication, warehouse and office space. For more information, visit TPI’s website at www.totalplastics.com or email inquiry@totalplastics.com .

ABOUT PROPHET EQUITY

Prophet Equity 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 sixteen years, Prophet Equity’s Principals have invested and managed over $2.5 billion 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 www.prophetequity.com or call us at +1.817.898.1500.

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April 6, 2016- MECHANICSBURG, PA – Prophet Equity II LP announced today that it has partnered with Mike Savastio and Jim Price, the President and CFO of Groff Tractor & Equipment (“Groff” or the “Company”), to make an equity investment to acquire a controlling interest in Groff. Headquartered in Pennsylvania with 11 locations that serve Pennsylvania, Maryland, New Jersey, Virginia and West Virginia, Groff is one of the largest CASE Construction dealerships in the United States. With a focus on construction equipment offered by CASE Construction, Wirtgen America and other leading construction equipment manufacturers, Groff is one of the largest dealers in its regions with an emphasis on unmatched customer service.

“We have been looking to find the right strategic partner for the last few years,” said Michael Savastio, President of Groff Tractor. “When we first met the Prophet Equity team, there was an immediate cultural fit and a common vision on how to take care of customers, how to take care of employees and how to grow our business. This transaction allowed us the opportunity to take care of outside family shareholders, while also providing the financial resources to facilitate our strategic expansion opportunities. I could not be more pleased for our employees, our customers and our shareholders with the opportunity to join forces with Prophet Equity, and I am excited to get started.”

Charles Collie, Managing Director at Prophet Equity, commented, “We are honored to have the opportunity to partner with Mike Savastio, Jim Price and Groff’s talented employee base to support its strategic growth initiatives. Through its reputation for top customer service and its strategic relationships with CASE Construction, Wirtgen America and the other leading construction equipment manufacturers they represent, there are a great opportunities to grow organically, through geographic expansion and through acquisition to strengthen Groff’s market share in the Mid-Atlantic region.”

“Prophet Equity has deep experience investing in heavy equipment and equipment rental businesses,” commented Ross Gatlin, Prophet Equity’s CEO and Managing Partner. “With our strong track record of identifying and investing in companies like Groff that have unique strategic strength and significant growth opportunities, we look forward to being a strategic, operational and financial partner to the entire Groff team.”

ABOUT GROFF TRACTOR & EQUIPMENT

Founded in 1958, Groff Tractor & Equipment is a heavy equipment specialist serving a broad range of construction end-markets with an extremely flexible mix of parts, service, rentals and sales. Groff has 11 locations that serve Pennsylvania, Maryland, New Jersey, Ohio, Virginia and West Virginia with excellent OEM partnerships that include CASE Construction, Wirtgen America, Terramac, Rubble Master, Liebherr, Terex, Takeuchi, Sakai, Wacker, and Atlas Copco. For more information, visit Groff Tractor & Equipment’s website at www.grofftractor.com .

ABOUT PROPHET EQUITY

Prophet Equity 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 sixteen years, Prophet Equity’s Principals have invested and managed over $2.5 billion 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 www.prophetequity.com or call us at +1.817.898.1500.

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Southlake, TX – August 7, 2015

Prophet Equity II LP announced today that it has acquired Brown Brothers Asphalt and Concrete (“Brown Brothers” or the “Company”), a leading provider of asphalt and concrete maintenance and new construction serving the Denver, Colorado, metro market. Under the terms of the transaction, former majority owners Dennis Brown and Paul Brown will maintain significant leadership roles and ownership of the Company going forward.

Dennis Brown, co-founder and Vice President of Brown Brothers, commented, “With their operational and investment experience in the asphalt and concrete maintenance space, Prophet Equity represented the ideal partner for me and my brother, Paul. We are excited to work alongside the Prophet Equity team to take Brown Brothers to the next level.”

Ross Gatlin, Prophet Equity’s CEO and Managing Partner, noted that “the Brown Brothers transaction is a great example of our system identifying strategically viable, market share leaders in attractive, growing markets. We look forward to partnering with Brown Brothers and its over 250 loyal employees as we deploy our operational toolkit and support the Company’s continued expansion.”

“Over the past 20 years, Dennis and Paul have built an unparalleled presence in Denver,” commented Prophet Equity Managing Director, Charles Collie. “We see tremendous opportunity to continue to grow BBAC’s core maintenance business, introduce new service lines, and expand geographically across the attractive Colorado Front Range.”

About Brown Brothers Asphalt and Concrete

Founded in 1996 and headquartered in Denver, CO, Brown Brothers Asphalt & Concrete is a market-leading provider of asphalt and concrete maintenance and new construction, as well as snow removal, to a diverse base of repeat customers in the real estate development, property management, and construction industries operating in the attractive Colorado market. www.asphaltconcrete.net

About Prophet Equity

Prophet Equity 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 sixteen years, Prophet Equity’s Principals have invested and managed over $2.5 billion 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 www.prophetequity.com or call us at +1.817.898.1500.

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April 17, 2015 – Baltimore, MD and Southlake, TX – Acton Mobile (www.ActonMobile.com), a portfolio company of Prophet Equity, announced today that it has entered into a definitive agreement to acquire the mobile office fleet of Mobile Mini. The transaction is expected to close in mid-May.

“Mobile Mini has one of the highest quality mobile office fleets in the industry. This acquisition will immediately strengthen Acton Mobile’s capabilities in its existing markets, while also broadening the geographic footprint across the United States,” commented Mike Sullivan, Senior Vice President of Prophet Equity.

Executives at both Acton and Prophet Equity have expressed that the acquisition will fuel expansion into new markets and will provide additional inventory to better serve Acton Mobile’s existing markets, which consist of 21 locations in 12 states.

“This acquisition makes Acton Mobile the 4th largest mobile office leasing company in the U.S.,” said Ingrid West, Acton Mobile’s President. “With approximately 9,400 mobile office units joining our fleet, we’ll have additional inventory to better serve growing markets. This acquisition will also position us for expansion into new geographic markets and to support additional customer segments.”

For the next several months, the Acton Mobile and Mobile Mini teams will be working together to ensure a smooth transition with Mobile Mini’s existing mobile office customers. “Both the Prophet Equity and Acton Mobile teams have significant corporate carve-out experience to facilitate a smooth transition,” remarked Ross Gatlin, Prophet Equity’s CEO and Managing Partner. “Prophet Equity targets unique transactions like this carve-out and has an experienced team to support the integration.”

Charles Collie, Managing Director – Leveraged Finance, commented, “Prophet Equity and Acton Mobile have expanded the financing relationship with its existing lenders to support this acquisition while continuing to provide flexibility for future expansion.”

About Acton Mobile

Acton Mobile is a Baltimore, MD-based provider of modular space rental services. It currently operates through 21 locations in 12 states. The company offers rental, delivery, setup, maintenance, and pick up services for temporary mobile office trailers and sells new and used units. Conforming to OSHA and ADA codes is extremely important, and Acton provides mobile office trailer accessories, such as steps and ramps that meet these requirements.

About Prophet Equity

Prophet Equity 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 $2 billion 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 www.prophetequity.com or call us at +1.817.898.1500.

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Southlake, TX, January 16, 2015: Keywell Metals LLC announced today that it is nearing completion on four (4) separate facility upgrades totaling more than $15 Million that will cement its position as the most up-to-date and efficient ISO 9001 certified processing company in the Aerospace & Specialty Steel Recycling Industry.

According to Ross Gatlin, CEO of Prophet Equity, the private equity firm from Southlake, TX, that owns Keywell Metals, “We are making what we anticipate to be a long-term investment in facilities and equipment at a time in the economic cycle that we believe is certain to strengthen our production capabilities and further support our customer base. As a uniquely long-term, value creation oriented private equity firm, we have always viewed Keywell Metals as a long-term play that will really pay dividends as this economy moves beyond recovery and into growth mode.”

Keywell Metals is in the final stages of a significant asset replacement, upgrade and consolidation program at its Stainless Steel & Aerospace metals recycling facilities. Those locations, in West Mifflin, PA, Atlanta, GA, Falconer, NY and Matthews, NC will form the core of the Company’s metals processing activities. “Most Company assets are being replaced with new, more efficient models or moved, refurbished and upgraded for improved capacity,” Gatlin said.

The West Mifflin, PA and Atlanta, GA facilities are the cornerstones of the Company’s full-service specialty steel recycling business. On March 1, 2015 in West Mifflin, the Company will open a brand new 60,000 square foot building exclusively dedicated to the processing of stainless steel turnings. Anchored by a sophisticated, new crushing line and extensive on-site laboratory and sample furnace operations, this improvement is designed to handle significant delivery levels efficiently and with the appropriate environmental systems. The new stainless turnings building is complemented by Keywell Metals’ other processing equipment in West Mifflin, including a complete array of metal identification analyzers, two (2) large Harris Model TG4036 hydraulic balers, two (2) torch-cutting booths, mobile hydraulic shear, and numerous hydraulic cranes, loaders, lift-trucks and support equipment. In Atlanta, new metal identification equipment, video management systems and equipment upgrades have been completed and operational for months.

The Falconer, NY facility in southwestern New York is a 90,000 square foot facility that is 100% dedicated to the processing of Titanium and Titanium Alloys. In addition to being Aerospace customer approved, the Falconer operation is the cleanest, most well thought out Titanium processing facility anywhere. With extensive laboratory and sample melt operations, numerous specialized metal identification analyzers, sorters, balers, a titanium cobbling line, torching, shearing, blasting, washing & cleaning capabilities, this facility can produce and has capacity to spare.

The Matthews, NC facility just outside Charlotte is a 120,000 square foot facility that, when completed in the next few months and combined with the capabilities of the Falconer facility, will set the standard for processing High Temperature Alloy and Titanium scrap metal. The Matthews facility is equipped with new best-in-class crushing and cleaning lines, all new laboratory and sample melt equipment, a wide variety of metal identification analyzers, sorting, baling, torching, shearing, blasting & environmental capabilities that will ensure top quality products.

Mr. Gatlin added: “Our investments in Keywell Metals are designed to create a standard in the Aerospace & Specialty Steel recycling industry. With more customers and suppliers experiencing how easily and professionally they are able to work with Keywell Metals, they are excited to do so again and again.”

Headquartered outside Chicago, Illinois, Keywell Metals LLC is a leading supplier of recycled titanium, high-temperature alloys and stainless steel in North America. The Company is highly focused on achieving the fastest and most accurate service in the industry so that suppliers can settle with their scrap generators with confidence and consistency. Collection and processing facilities are located in Monroe, North Carolina, Matthews, North Carolina; Falconer, New York; West Mifflin, Pennsylvania; and Atlanta, Georgia. Since January 1, 2014, the Company has been owned by Prophet Equity, a private equity firm based in Southlake, Texas, with over $1.0 billion of assets under management. Prophet Equity’s principals have invested in and managed over $2 billion of value creation across entities with over $4 billion in revenue. Its control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. For more information visit www.keywell.com or www.prophetequity.com.

Article featured in American Metal Market magazine January 16, 2015