Glassport, Pennsylvania-based scrap mill services provider, and parent of Tube City IMS Corp., TMS International, will be acquired by the billionaire Pritzker family for $687 million in cash. The Pritzker organization is a private equity firm. By revenue, TMS is the largest provider of outsourced industrial services to steel mills in North America. The full value of the deal is actually about $1 billion when refinanced debt is included.
Pritzker is offering TMS shareholder $17.50 per share--the company's closing price on Friday was $15.57. "TMS is a leading provider of mill, procurement, and logistics services to the steel industry, with an exceptional management team and a proven track record of delivering value to its customers," Tom Pritzker, chairman and CEO of The Pritzker Organization, said in a statement.
Subject to various approvals, the deal is expected to close in Q4, following which TMS will become a privately-held company. Toronto-based Onex Corp., a private equity firm that already own 60 percent of TMS has already approved the deal.
