Dallas’ Venture Metals + Acquires Companies in Arizona and Pennsylvania

Based in Philadelphia and founded in 1939, Thalheimer is a non-ferrous scrap metal processor of copper, brass, stainless steel, and other metals, selling to foundries, refiners, and mills globally. It acquired Phoenix-based Mega Metals in 2018.

An affiliate of Dallas-based Venture Metals +, provider of sustainable metal recycling solutions, has acquired Thalheimer Brothers LLC and Mega Metals LLC, both of which specialize in the processing of non-ferrous metal within the utilities, aerospace, construction, and general industrial markets.

“We’re very excited to welcome the Thalheimer team to our organization,” Venture Metals CEO John T. Shaddox said in a statement. “I look forward to seeing the immediate benefits of combining our winning cultures and rich history to enhance value.”

Venture Metals is a portfolio company of Mill Rock Capital. Terms of the deal were not disclosed.

More on the two acquired companies

Based in Philadelphia and founded in 1939, Thalheimer is a non-ferrous scrap metal processor of copper, brass, stainless steel, and other metals, selling to foundries, refiners, and mills globally. Thalheimer processes mixed loads of alloyed and non-alloyed scrap to produce complex blends with specific chemical properties required by its customers.

Venture Metals said that Thalheimer’s expertise in these metals, developed over its more than 80-year operating history, allows the company to provide a one-stop solution for suppliers and customers alike.

Founded in 1985, Phoenix-based Mega Metals was acquired by Thalheimer in 2018 and is a global leader in the recycling of titanium turnings and solids. The company’s state-of-the-art titanium processing center offers a complete suite of recycling services, from metal recycling to inspection and testing to assure high quality in its finished products.

Venture Metals said that Thalheimer and Mega Metals will continue operating under the leadership of CEO Rich Reiner as sister companies to Venture Metals, enjoying the broader platform’s enhanced market access, operational capacity and capital support.

Benefits of the deal

Per Venture Metals, highlights of the transaction include:

  • Enhanced Recycling Capabilities: Venture Metals and its affiliates can now process a wider variety of recyclable materials, leveraging best practices across the combined platform.
  • Geographic Expansion: The combined footprint includes seven processing facilities worldwide, including five in the United States and two in South Korea, as well as an office in Mexico. The transaction provides Venture Metals with more direct access to large markets in the Northeast and West Coast, while supplementing its strong positions in the Southwest, Midwest and Asia.
  • Increased Capacity: Venture Metals and its affiliates can process a substantially increased quantity of recyclable materials annually across its expanded network of facilities, reinforcing the company’s longstanding commitment to the environment, local communities, and growth.
  • Leading Processor of Copper: Together, Venture Metals and Thalheimer represent one of the largest independent processors of copper scrap metal in the United States, with copper being widely recognized as one of the key metals supporting electrification.
 

Longstanding partnership

Venture Metals said it has had a robust partnership with Thalheimer “spanning many years,” during which they have collaborated as reciprocal suppliers, supporting certain of each other’s market requirements.

“Thalheimer provides Venture with the ideal opportunity to increase our operational capabilities, extend our reach throughout the recycling industry and drive positive environmental change,” Mike Uhrick, chairman of Venture Metals, said in a statement. 

“This acquisition aligns perfectly with our strategic objectives of growth and business diversification. Our long history with Thalheimer’s leadership team makes them ideal partners to help accelerate the attainment of these goals,” Mark Chazanow, vice chairman of Venture Metals, said in a statement.

Reiner added: “This combination of Venture Metals and their globally respected brand with the legacy of Thalheimer Brothers is a great development for our employees, customers and suppliers.”

Alvarez & Marsal and Akin advised Venture Metals on the transaction. Bank of America provided debt financing.

Venture Metals+ operates processing facilities in Dallas, Houston, Wills Point, Joliet, Illinois, and Gunsan, South Korea. It has an office in Monterrey, Mexico.

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