Sumitomo rolls out acquisition of Steel Wheel Corporation

Sumitomo Metal Industries and Sumitomo Corp has agreed to buy Standard Steel, a portfolio company of Trimaran Capital Partners based in the United States for £213.39 million.

Round-up of today’s M&A deals

Sumitomo Metal Industries and Sumitomo Corp has agreed to buy Standard Steel, a portfolio company of Trimaran Capital Partners based in the United States for £213.39 million.

Sumitomo Metal will take 90 per cent in Standard Steel and Sumitomo Corp will hold the remaining equity. Pennsylvania-based Standard Steel is a producer of steel railroad wheels and axles for use in freight railcars, locomotives and passenger railcars.

Sumitomo has been stepping up efforts to increase overseas sales and made the acquisition as part of a strategy to move towards achieving the expansion of its global presence and winning railway project contracts in markets including the United States, Europe and Asia.

‘This is the first step in our global expansion in the railway field,’ comments Kiyotaka Nogi, senior managing executive officer in charge of the Japanese steel maker’s railway parts business. Nogi says Sumitomo Metal chose to buy Standard Steel partly because the company uses the same method to manufacture wheels.

Trimaran is a private asset management firm, headquartered in New York, with assets under management of £1.25 billion. Trimaran initially purchased Standard Steel in 2006.

Credit Suisse Securities acted as financial advisor to Sumitomo and Skadden, Arps, Slate, Meagher & Flom acted as legal counsel to Trimaran.

Round-up of today’s M&A deals

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Value: undisclosed

Advisers: Redleaf Polhill, Strand Hanson, Northland Capital Partners

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  • Jardine Lloyd Thompson Group continues drive to expand its Latin American businesses with the intention to acquire 50.1 per cent of Orbital Corredores de Seguros, a Chilean insurance broker 

Value: undisclosed

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Value: undisclosed

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Todd Cardy

Todd Cardy

Todd was Editor of GrowthBusiness.co.uk between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital. Connect with...

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