United Steel Supply, LLC Sells 75% Interest To Steel Dynamics, Inc. (NASDAQ/Gs: STLD)

Founded in 2007, United Steel Supply, LLC (“United Steel Supply” or “the Company”), based in Austin, TX, is the market-leading distributor of painted Galvalume® steel coils to the independent steel roll former industry. The Company’s Galvalume® and other flat rolled steel product is used to meet the growing demand for metal roofing and siding applications in residential, commercial, industrial, and agricultural end markets. The Company has served as a strategic partner to hundreds of customers across the United States, providing them with high-quality product and reliable inventory availability and best-in-class customer service.

The Company is headquartered in Austin, TX with distribution centers strategically located in Mississippi, Indiana, Arkansas, and Oregon.

United Steel Supply’s founders created the market leading distribution platform through innovative solutions and a focus on putting customers first. The Company’s revolutionary model allowed for shorter lead times from suppliers, as well as just-in-time services and guaranteed standard inventory availability for its customers. This transformative approach to working with its suppliers and customers, further supports and fosters growth of the industry they serve. After completing two acquisitions at the beginning of 2018, the founders identified further opportunity to accelerate their vision and growth with the right strategic partnership.

G2 has served as a long-term strategic advisor to United Steel Supply and as the exclusive financial advisor for this process, responsible for running a highly tailored, strategic, and efficient recapitalization transaction process for the Company.

The transaction was successfully executed through a sale of United Steel Supply’s majority interest to Steel Dynamics, Inc. (NASDAQ/GS: STLD, “Steel Dynamics”), with an option to sell the remaining interest to Steel Dynamics in the future. Steel Dynamics purchased 75 percent of the equity interests of United Steel Supply for $134 million, comprised of cash consideration of $93 million and the assumption of $41 million in apportioned net indebtedness. Additionally, Steel Dynamics has an option to purchase the remaining 25 percent equity interests of United Steel Supply in the future.

Bret Curtis, President of United Steel Supply, shared, “G2 has been our trusted advisory partner for many years, supporting the execution of United Steel Supply’s long-term vision, as well as leading the exploration of several of the Company’s strategic initiatives. Throughout the course of this most recent process and the duration of our relationship, G2 has helped us to successfully navigate options and lead us through to the best possible outcome. Their knowledge of our business, our industry and the future potential of our platform was critical to the success of the sale process, which was highly customized and required significant hands on work specific to the partnership and transaction ultimately completed with Steel Dynamics.”

“The partnership between United Steel Supply and Steel Dynamics is strategically compelling for both organizations. We feel privileged to have had the opportunity to play an active role in the successful outcome of this transaction,” said Jeffrey Unger, CEO of G2. “Our relationship with United Steel Supply is a terrific example of our strategy of acting as an industry focused trusted advisor and partnering with best-in-class founders and management teams.”

The transaction will support the Company’s growth initiatives of expanding service and product offerings.

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