ATLANTA, June 18, 2024 /PRNewswire/ — Pacesetter Steel Service (Pacesetter) and Flack Global Metals (FGM), two leading metals distribution and service center platforms, announced today that they have signed an agreement for FGM to acquire a majority ownership interest in Pacesetter’s business. Terms of the agreement were not disclosed. The transaction is expected to close in July 2024.
After conducting an extensive succession planning process, Pacesetter chose to partner with FGM based on FGM’s proven leadership in deploying risk management and hedging strategies for the benefit of its clients. Additional factors that influenced the selection of FGM include FGM’s investment and business philosophy, which is based on deep industry expertise, strong organizational culture, and a history of successful M&A. FGM’s investment thesis revolves around maintaining Pacesetter as an independent vertical market within the FGM ecosystem while growing the Pacesetter platform.
Pacesetter was founded in 1977 by current CEO Steve Leebow. The company has deep ties to numerous industries including HVAC, refrigeration, construction and transportation, providing them with premium steel coil, slitting, cut to length, blanking and contract fabrication services. FGM is an industrial ecosystem consisting of metal distribution (Flack Metal Supply), risk management and hedging services (Flack Capital Markets), international metals trading (Flack Metals Trading) and direct equity investments (Flack Manufacturing Investments). Pacesetter will be the first distribution and fabrication service center to be added to FMI’s portfolio of companies, as previous investments have been focused on OEMs that use flat steel as their primary input.
“We were excited when Pacesetter approached us regarding their succession planning. Given that metal distribution is one of FGM’s core operations, adding a well-regarded service center like Pacesetter to ours was a natural fit. This partnership will allow clients of both organizations to enjoy the best of both worlds,” said Ben Bucci, president of Flack Global Metals. “On the one hand, we have Pacesetter’s strong physical infrastructure, known for its contract work and handling complex supply chains. On the other, FGM provides access to one of the industry’s most innovative platforms offering extensive supply options through proven risk management and hedging services.”
Pacesetter is headquartered in Atlanta, Georgia with service centers in Atlanta, Chicago and Houston. Pacesetter is known for its excellent customer service, value-driven customer programs and supply chain management that build long-term relationships.
“Flac’s long-term investment outlook was the primary factor that differentiated us from the venture capital and private equity firms that were interested in investing in our company,” said Del Rand, Paysetter’s president. Steve Liebow, Paysetter’s founder and CEO, added, “Of course, we knew of FGM’s risk management and hedging leadership within the industry, but as we dug deeper, we found they also had extensive experience in M&A activity and innovative operational management. We quickly saw how FGM’s financial expertise and our physical capabilities complemented each other.”
The acquisition of a majority stake in Pacesetter is the latest example of FGM’s effective use of capital and further proves that the company’s model of decoupling price and supply works to reduce market frictions and create enterprise value.
“This is the next step on our path to transform the metals industry and set a new standard in operational excellence, strategic growth and cultural integration,” said Jeremy Flack, founder and CEO of Flack Global Metals. “We are solidifying FGM’s position in the market, paving the way for future growth opportunities and partnerships, and building on our legacy of success, innovation and resilience.”
About Pacesetter
Founded in 1977, Pacesetter is headquartered in Atlanta, Georgia with service centers in Atlanta, Chicago and Houston (NSPS is a joint venture with Nippon Steel America). Service centers offer steel slitting, blanking, cut-to-length and contract fabrication services. Pacesetter provides unmatched value to its customers through custom tailored pricing solutions, inventory management programs and supply chain management systems.
About Frac Global Metals
In 2010, Flack Global Metals (FGM) was founded with a mission to revolutionize the way metals are bought and sold. The company has evolved into a hybrid industrial organization specializing in buying, selling, manufacturing, trading and investing in flat steel. FGM has built a steel ecosystem built on risk management and hedging practices combined with a culture of innovation to reduce friction and provide choice in a volatile steel industry, ultimately increasing enterprise value for all members.
contact:
Patty Liu
ODEA Group
312.893.5163
Patty
SOURCE FLACK GLOBAL METALS
