Gerdau Sells Premier Thermal Solutions

Under Z Capital Partners, their new owners, PTS looks to expand their metal heat treating service through strategic acquisitions and entry into new markets.

Gerdau S.A. (Porto Alegre, Brazil) recently completed the sale of their Atmosphere Annealing (AA) and NitroSteel (NS) divisions, collectively known as Premier Thermal Solutions (PTS), to Z Capital Partners, LLC (Lake Forest, IL). The transaction, which closed on March 31, 2017, provides PTS with the financial backing to expand their metal heat treating service offering by adding capabilities organically, through strategic acquisitions and by diversifying into additional end-markets.

A provider of metal heat treating and related services to various end-markets, including automotive, trucking, oil and gas, agriculture, heavy construction and military, AA operates from plants in Ohio, Michigan and Indiana. Based in Wisconsin, NS is the only domestic provider of nitro-carburized steel bars and tubes that are utilized primarily in fluid power applications in the agricultural, construction, mining, marine, utility and automotive end-markets.

A leading producer of long steel and one of the largest suppliers of special steel, Gerdau divested PTS to Z Capital, a leading global alternative investment manager focused on opportunistic, value-oriented private equity and credit funds. Through this acquisition, the PTS business unit, which includes the AA and NS divisions, will leverage Z Capital’s financial strength and operational expertise to further accelerate their growth.

Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. In Brazil, they also produce flat steel and iron ore, activities that are expanding its product mix and boosting its competitiveness. They are also the largest recycler in Latin America and each year around the world they transform millions of tons of scrap into steel, reinforcing their commitment to sustainable development in the regions where they operate.



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