Dresner Partners, Mergers Alliance partner in the USA, advised CAI Custom Alloys, LLC (CAI), a portfolio company of Des Moines, Iowa-based Summit Equity Group, on its sale to EverMetal Holdings LP (EverMetal), the world’s first critical metals recycling platform dedicated to strengthening domestic access to the strategic metals supply chain.
Established by a consortium of private equity investors with the majority backing of GEF Capital Partners (GEF), a Washington, D.C.-based private equity firm focused on climate change and pollution mitigation, EverMetal aims to build a viable alternative to purchasing critical minerals by creating an integrated recycling supply chain in the U.S.
The superalloy market consists of critical metals used in aerospace, power generation, renewable energy and technology, and electronics industries. Mining of these superalloys are concentrated in a few specific geographies primarily in Africa and Asia, and almost never consumed where they are mined. A recycled alternative in the U.S. allows American companies to purchase critical raw materials domestically while reducing costs, lowering GHG emissions, and taking greater control of their supply chain.
Established in 2009, Belvidere, Illinois-based CAI has built an outstanding reputation for precision processing of complex nickel, cobalt, and specialty metal scrap, supporting end markets across aerospace, defense, power generation, medical, and technology. The company is one of a select few domestic processors holding vacuum-melt certification from major aerospace customers – a prerequisite for inclusion in critical component manufacturing.
Commenting on the transaction, Jeffrey Rubino, CEO of CAI said, “We are very excited to join EverMetal and accelerate our mission to deliver high-integrity, U.S.-recycled metals for America’s most demanding applications. The Dresner team was pivotal in helping us secure a great partner in EverMetal and we look forward to leveraging EverMetal’s powerful network across the metals recycling landscape.”
“We would like to thank the Dresner team for its dedication in completing this transaction. Their understanding of the salient business issues and attention to detail enabled us to achieve a great outcome for shareholders and an intriguing opportunity for management going forward,” said Jason DeStigter, Managing Partner of Summit Equity Group.
Paul Hoffman, Managing Director for Dresner Partners said, “We appreciated the opportunity to advise CAI on the sale of the company for the second time. It was a pleasure working with CAI management once again as well as Summit Equity Group, EverMetal and GEF to consummate this transaction. We are excited to see the opportunities that will be created by this novel critical metals recycling platform.”
Steven M. Dresner, President of Dresner Partners added, “Our continued relationship with CAI is a testament to our dedication to client service and the specialized capabilities of our firm in the industrials space. I look forward to watching CAI with its new owner, EverMetal, accelerate through its next phase of development.”
