Matrix Capital Markets Group (804) 780-0060 - Case Study: Aerodyne Alloys, Inc.

Case Study: Aerodyne Alloys, Inc. - Divestiture

Situation

Aerodyne Alloys, Inc. (Aerodyne), a worldwide distributor of high temperature nickel, cobalt, and titanium alloys, was a wholly-owned subsidiary of Ulbrich Stainless Steel & Specialty Metals, Inc. (Ulbrich), a major stainless steel processor, distributor and service center operator.
While complementary to Ulbrich’s core business, Aerodyne was never integrated into Ulbrich’s operations and largely operated autonomously. Having conducted a strategic review of the Aerodyne business, Ulbrich sought to focus its resources and management attention on the growth of its core stainless steel strip and wire business.

Objective

Matrix assisted Ulbrich in reviewing strategic alternatives for Aerodyne, including a sale, merger, joint venture and securing a new investment partner.

Solution

Matrix identified and contacted over 200 potential strategic and financial buyers/investors and assisted management in the pursuit of a possible management buyout.
Confidential Information Memoranda were distributed to 16 interested parties and six Indications of Interest were received.
After completing management presentations, the shareholders selected O’Neal Steel, Inc.to complete a sale of the business.