Lone Star Investment Advisors Announces Sale of ESP Specialty Steel Products LLC

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Lone Star Investment Advisors sold of its portfolio holding ESP Specialty Steel Products LLC ("ESP") of Houston, Texas, to SPS Companies, Inc. of Kansas. The acquisition of ESP represents SPS's first entry into markets and distribution for stainless steel products. Montrose Advisors provided advisory services and coordinated the sale of ESP through acquisition. Ted Schweinfurth of Baker McKenzie served as legal counsel to ESP. Clayton Skaggs of Weary Davis served as legal counsel to SPS.

Lone Star Investment Advisors (Lone Star) is a Dallas-based private equity firm that specializes in leveraged acquisitions and recapitalizations of strategically viable, middle-market businesses with strong potential for growth. The firm invests in Texas in a wide variety of industry sectors including manufacturing, industrial, distribution, business services and energy. Lone Star specializes in investments that will create employment opportunities and maintain a strong reputation for driving economic growth in low-income communities. www.lonestarinvestmentadvisors.com

ESP Specialty Steel Products is a master distributor based out of Houston Texas. As a secondary source to the mills, ESP sells stainless long products to stocking distributors to support their inventory positions. Operating out of its Houston and Chicago locations, ESP is a leader in customer service and innovative value-added service offerings, leveraging strategic partnerships with quality mills and select customers to offer specialty stainless steel products to stainless steel distribution/service centers.
ESP strives to anticipate the needs of customers by offering quality stainless and perforated metal products, ISO 9001:2015 certification, competitive lead times, 98% or better on-time delivery, quick-turn sawing and customer-tailored inventory management programs with online visibility to inventory levels and inbound in-transit. ESP will also meet customer specific requests for color coding, bar coding and custom packaging. www.espsteel.com

SPS Companies is an over 90-year-old private company based in Manhattan, Kansas. It operates several business units in the carbon steel space. These business units provide distribution, inventory management, steel processing and parts manufacturing services to a diverse array of customers in both the long and flat product markets. www.spsci.com

Montrose Advisors is an independent advisory firm specializing in Mergers & Acquisitions, Capital Raising, and Strategic Advisory analyses for middle-market and lower-middle market clients in the Manufacturing, Metals, and Industrial Services markets. Montrose provides the sophistication and experience of an international investment bank, the deep network and market knowledge of an industry veteran, and the trusted relationships and personal attention of a boutique consultancy as it helps owners and managers tackle strategic opportunities and challenges with a combination of rigorous analysis, disciplined processes, and creative solutions. www.montroseadv.com