White Rock Advisors, LLC is pleased to announce it recently advised The Trident Company (“Trident”) of Richardson, Texas, on its sale to Metals USA creating a $1 billion in revenue consolidated company.
Trident, founded in 1962, is an ISO-9001 certified stocking distributor of specialty high performance and corrosion resistant metals, including aluminum, stainless steel, nickel, copper and many other exotic alloys. Trident has locations in Texas, Oklahoma and Missouri, and supplies to the Aerospace & Defense, Oil & Gas, Semiconductor, Transportation, Medical and Construction markets throughout the US.
Metals USA (NYSE: MUSA) is a leading provider of processed carbon steel, stainless steel, aluminum and other metals.
The team at White Rock Advisors led Trident through a complicated sales process in just 55 days. The company had reached an economic highpoint with 17 facilities in 6 states and 550 employees, but two years later found itself over advanced to its bank group and moved to the “workout group”.
The sale to Metals USA allowed the company to:
- Remove owner’s personal liability.
- Pay off 5 banks at par.
- Pay off subordinate lenders.
- Distribute cash to owners.
- Reduce trade credit indebtedness, increase working capital, and save 350 jobs.
The acquisition of Trident represents Metals USA’s third acquisition since its IPO in April 2010. Trident was the largest company acquired by Metals USA thus far. With the addition of Trident’s eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States.
A team from White Rock Advisors, led by Simon Martin and Greg Hext, advised management of Trident throughout the sale process.