Newbury Franklin Industrials (US), an industrial components supplier, acquired Metaltech Service Center (US), a metal supply company based in Houston, Texas, on April 18, 2023.

AcquirerNewbury Franklin Industrials (US)
TargetMetaltech Service Center (US)
Deal ValueUndisclosed
Stake Acquired100.0%
Type of DealAcquisition
Closing Date2023-04-18
Anncmnt Dt2023-04-18

Newbury Franklin Industrials, based in Buffalo, New York, expanded its product offerings to include metals through the acquisition of Metaltech Service Center. The deal aims to cater to customer demand for a consistent supplier in the maintenance, repair, and operations (MRO) markets.

Strategic Rationale

Newbury Franklin Industrials has been pursuing an expansion strategy into the metals market by acquiring Metaltech Service Center. This acquisition enables NFI to offer its customers a broader range of products including metal raw materials such as sheets, plates, and bars. It also positions the company to develop a southern U.S. consolidation hub in Houston for future acquisitions.

Financial Context

The deal marks another step in Ironwood Capital's strategy to support growing industrial businesses with subordinated debt investments. By acquiring Metaltech Service Center, Newbury Franklin Industrials aims to leverage its existing strengths and customer relationships to enter the metal supply market effectively.

Advisors

The financial advisors for both sides were not disclosed. Legal counsel was also undisclosed.

Outlook

Newbury Franklin Industrials anticipates that this acquisition will enhance its position in the MRO and general industrial markets, providing a comprehensive suite of products to meet customer needs more effectively across different regions.