Olympus Partners Said to Mull $900 Million Phoenix Services SaleBy
Steel mill outsourcer merged with Gagneraud Industries in 2011
Buyout firm Olympus said to have explored Phoenix sale in 2014
The buyout firm is in talks with advisers about strategic options for the company that may lead to a sale, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Phoenix could fetch as much as $900 million, the people said.
No final decision has been made and Olympus could elect to keep the company, the people said.
Spokesmen for Olympus and Phoenix didn’t respond to emails for comment.
In 2009, Olympus took a majority stake in Kennett Square, Pennsylvania-based Phoenix, and grew the company by acquiring France’s Gagneraud Industries two years later, according to data compiled by Bloomberg. Phoenix, which generates about $120 million in earnings before interest, taxes, depreciation and amortization, was the subject of a prior sale attempt in 2014, the people said.
Phoenix’s services to steel mills include slag handling, scrap management, metal recovery, in-plant logistics and equipment rental services, according to the company’s website. Its customers include ArcelorMittal, United States Steel Corp., Nucor Corp., Gerdau Ameristeel Corp., Steel Dynamics Inc. and Thyssenkrupp AG.
Olympus, founded in 1998, raised $2.3 billion for its sixth fund in 2013. That pool is generating an annualized return of 35.1 percent, putting its returns among the top 25 percent of competing funds, according to data compiled by Bloomberg.