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Heritage Capital Group Orchestrates Pivotal Varsteel & Pacific Steel Merger

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Michael Chen

March 21, 2024 - 17:52 pm

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Heritage Capital Group Advises on Strategic Acquisition of Pacific Steel by Varsteel

JACKSONVILLE, Fla., March 21, 2024 /PRNewswire/ -- In a significant move that strengthens its market position, Heritage Capital Group, Inc., a renowned investment banking and financial advisory firm with a global outreach, has proudly announced the acquisition of its client, Pacific Steel, by the seasoned industry player Varsteel. This strategic acquisition positions Varsteel as a powerhouse in the steel distribution sector and underscores Heritage Capital Group's prowess in facilitating key industry mergers and acquisitions.

Pacific Steel acquired by Varsteel Pacific Steel, a well-established company located in Quebec, moves under the banner of Varsteel.

The Legacy of Pacific Steel

Originating in the 1950s, Pacific Steel has carved out a prominent place for itself as a leader in the distribution of structural steel to sizable fabricators and service centers throughout Eastern Canada. This commendable track record extends beyond the local market; the company prides itself on serving particular products to clients in the northeastern United States, as well as across the entire Canadian territory.

Pacific Steel's impressive portfolio is rounded out by its capabilities as a full-range supplier, fabricator, and installer of reinforcing bar (rebar), a fundamental component in construction markets. The company's expertise and superior service are enriched by operating from two strategic locations in Laval, Quebec, optimizing their reach and service capabilities.

Varsteel's Robust Market Footprint

Varsteel, a prominent steel and pipe service center and processor, has cultivated an extensive network bolstered by over 800 employees and 32 locations spread across Western Canada and the United States. With its headquarters stationed in Lethbridge, Alberta, Varsteel has been a beacon of quality and reliability for over seven decades, supplying products and services that consistently meet and exceed customer expectations.

A Symbiotic Union

Joe Antebi, the esteemed president of Pacific Steel, reflected on the company's journey with reverence, celebrating decades of unwavering commitment and contributions from numerous devoted employees. Antebi expressed confidence that the acquisition by Varsteel would infuse Pacific Steel with fresh momentum, propelling it along a trajectory of sustained growth. Moreover, he expressed profound appreciation for the guidance provided by the Heritage team, deeming their advice as instrumental to the smooth procession of the transaction.

Gerald Varzari, the CEO of Varsteel, also shared his enthusiasm regarding the recent acquisition. He commented on the high esteem in which Pacific Steel is held and emphasized the significance of this acquisition for Varsteel, highlighting the potential for increased strength and diversification. Varzari commended the collaborative efforts between the two companies and the Heritage team throughout the transaction process.

Unveiling the Deal Architects

In an advisory capacity, Heritage Capital Group played an exhaustive and exclusive role, guiding Pacific Steel through every intricacy of the acquisition process. The distinguished deal team was comprised of Bert Tenenbaum, Doug Kravet, Stan Baucum, John Pregulman, and JP Allen, bringing together a wealth of expertise and critical insight. While the terms of the transaction remain confidential, the successful conclusion of this significant endeavor speaks to the acumen and diligence of the entire Heritage team.

Comprehensive Services by Heritage Capital Group

Heritage Capital Group, operates with unwavering dedication to delivering impartial advice to private companies engaged in various financial undertakings, including mergers, acquisitions, divestitures, and valuations. Moreover, the firm provides expertise in avenues such as debt and equity capital raises, corporate restructurings, and other financial and strategic advisory services, which are all designed to amplify the value of business enterprises.

As a FINRA registered broker-dealer and prestigious member of Oaklins, the world's preeminent mid-market M&A advisor, Heritage Capital Group is uniquely positioned to marshal 850 professionals globally, supported by dedicated industry teams in 45 countries—each thoroughly equipped to offer insightful and strategic advice.

Heritage Capital Group's Track Record

The outcome of this transaction further secures Heritage Capital Group's stature as a leader in investment banking and financial advisement. The firm has consistently proven its ability to navigate complex transactions and deliver outcomes that not only align with the visions of their clients but also enhance the competitive landscape of the industries they serve. The successful acquisition of Pacific Steel by Varsteel is a testament to this commitment.

For further inquiries or media contact: Katie Quackenbush Telephone: 904-354-9600

SOURCE: Heritage Capital Group

Insights into the Acquisition Agreement

The acquisition of Pacific Steel by Varsteel spills over into a broader narrative of the economic vitality and the ever-expanding industrial landscape within Canada. It highlights the importance of legacy and innovation, as two entities with rich histories join forces. This partnership is envisaged to cultivate an enlarged customer base, diverse product offerings, and the realization of economies of scale which promise enhanced operational efficiencies and market expansion potential.

The Growth Trajectory Reinforced

The absorption of Pacific Steel into Varsteel marks a calculated evolution for the steel distributor giant. This move not just places Varsteel in a vantage position within the competitive landscape but also augments its capability to meet the increasing demands of a burgeoning construction industry within and beyond Canadian borders. The strengthened portfolio that comes with Pacific Steel's rebar manufacturing and installation services positions Varsteel to cater to the comprehensive needs of various construction projects, ranging from minor renovations to large-scale infrastructure developments.

A Strategic Future Envisioned

As the dust settles on the acquisition, eyes are set on the future and the potential pathways this union will forge. For Pacific Steel, now under Varsteel's wide umbrella, the opportunities are boundless. Varsteel's established reputation of unwavering quality and customer-first approach could introduce Pacific Steel's products and services to new markets and industry segments. As the legacy of Pacific Steel coalesces with the dynamic approach of Varsteel, the combined entity is poised to dominate the structural steel distribution space with an unmatched resilience and strategic prowess.

The Significance of the Middle-Market

In the grand tapestry of global mergers and acquisitions, mid-market entities like Pacific Steel represent a critical fulcrum for economic health and diversity. Heritage Capital Group's involvement amplifies the notion that nurturing these enterprises through strategic partnerships can have substantial ripple effects across industries. This acquisition serves as a beacon for similar firms looking to scale, innovate, and carve out significant niches within their respective markets.

The Financial Grandeur of the Deal

While the financial specifics of the acquisition retain their confidentiality, the underlying value exchanged between Pacific Steel and Varsteel hints at a deal of considerable magnitude. Heritage Capital Group's strategic advisement likely encompassed an extensive financial structuring process, ensuring that the deal not only met the valuation expectations of both parties but also paved the way for long-term financial synergy. The precise orchestration of this acquisition serves as a model for the financial engineering behind successful corporate mergers.

Commitment to Customer Satisfaction

Varsteel's proclamation of the acquisition reiterates its enduring commitment to customer satisfaction. Drawing upon Pacific Steel's reputable foundations and harmonizing them with Varsteel's operational excellence is anticipated to yield an enhanced customer experience. This transaction could facilitate expedited services, improved product quality, and a broader inventory, further solidifying Varsteel’s position as a market leader and trusted supplier in the steel industry.

The Visionaries Behind the Venture

The leaders at the helm of Pacific Steel and Varsteel beam with justified pride over this milestone. Joe Antebi's sentimentality toward Pacific Steel's history and Gerald Varzari's vision for Varsteel's ascendancy illustrate the emotional and strategic depth inherent in such transactions. This acquisition encapsulates their drive to not only maintain but elevate their organizations' contributions to the industry and community at large.

A Full Range of Expert Services

Heritage Capital Group's role extends well beyond the singular event of this acquisition. Its palette of expert services—mergers, acquisitions, divestitures, valuations, and advisory services—affirm the firm's holistic approach to enhancing the engines of commerce that middle-market and emerging growth companies represent. Engagements like this one with Pacific Steel and Varsteel showcase Heritage Capital Group's commitment to fostering robust business entities equipped for the challenges of tomorrow.

In Conclusion: A Forward-Thinking Industry Partnership

The acquisition of Pacific Steel by Varsteel, under the adept supervision of Heritage Capital Group, marks a turning point for the North American steel industry. It represents the intricate interplay of heritage and innovation—a union that is both timely and timeless. As the steel industry looks to the future with an eye for growth and resilience, such strategic alliances will serve as cornerstones for industrial evolution, economic stability, and enhanced global competitiveness.

This news article is informative and features insights about the pivotal acquisition. For more information on Heritage Capital Group and their expert advisory services, please visit their website here.