The Carlyle Group Sells Majority Stake in JMC Steel Group To The Zekelman Family

Global alternative asset manager The Carlyle Group and JMC Steel Group announced today that they have signed a definitive agreement whereby Carlyle will sell its majority stake in JMC to the Zekelman family, which currently owns a minority stake. JMC will put in place a new capital structure and debt facilities, which will enhance the company’s growth opportunities. Carlyle will maintain a minority stake in JMC and participation on the board of directors. Financial details were not disclosed. The transaction, which is subject to financing, is expected to close by March 31.

“Our new ownership and accompanying changes in financial structure will give JMC much more flexibility to make strategic investments,” said JMC Group Executive Chairman Barry M. Zekelman. “I am confident the changes will have a favorable impact on our employees, customers, suppliers and business partners.”

To retire the company’s existing debt and facilitate the transaction, JMC Steel Group will borrow approximately $1.1 billion.

“The new ownership and capital structure coupled with our strong competitive position and operational capabilities will enhance our growth prospects and provide for an exciting future for JMC Steel, our employees, our customers and our suppliers,” said Frank A. Riddick III, JMC Steel Group Chief Executive Officer.

“I believe strongly in the future of this company, the current management team, and the bright prospects for JMC Steel, which has been my passionate professional focus for 30 years,” said Mr. Zekelman. “Frank and I share a vision for JMC Steel. We expect coming years to produce even greater success than we have already achieved,” he said.

Carlyle Managing Director Andrew Marino said, “JMC is a great example of how manufacturing in America can thrive with the right leadership, strategic vision and capital investment. Working closely with the Zekelmans and management we have made JMC a stronger company economically and from an environmental and governance standpoint, and we look forward to continuing to create value for JMC in the future.”