PNW Metal Recycling Has Received a Minority Growth Investment From ITOCHU Metals Corporation
HOUSTON, August 29, 2023 – GulfStar Group ("GulfStar") is pleased to announce that PNW Metal Recycling, Inc. (“PNW” or the “Company”) has received a minority growth investment from ITOCHU Metals Corporation (“IMC”), a subsidiary of ITOCHU Corporation (“ITOCHU”) (TYO: 8001). GulfStar served as the exclusive financial advisor to PNW throughout the transaction, which closed on June 30, 2023.
Headquartered in Clackamas, Oregon, PNW operates a full-service ferrous and non-ferrous metal recycling business. The Company sells its recycled metal product to both international and domestic markets. PNW gathers scrap in North America and sells hundreds of thousands of tons of recycled metals to hundreds of domestic and international customers per year. PNW’s services are key to a growing circular economy, offering a low-cost replacement to virgin metal production. Recycled steel scrap saves approximately 70% of energy (95% for aluminum) and 55% of CO2 emissions when compared to virgin materials, according to the World Steel Association.
"PNW conducted significant research to find the right investment banking firm to help us through this process. We landed on GulfStar for their experience in the industrial space, familiarity with our industry, and team chemistry," said Sean Daoud, vice president of PNW. "GulfStar helped us navigate our process by providing the right guidance around valuation, communication, and articulating our growth goals. They were a key partner to the success of this transaction."
The history of ITOCHU dates back to 1858 when the company’s founder, Chubei Itoh, began linen trading operations. Today, Tokyo-based ITOCHU is a Japanese conglomerate engaged in domestic trading, imports and exports, and overseas trading of products, including textiles, machinery, metals, minerals, energy, chemicals, food, general products, realty and more. ITOCHU’s business has eight major operational divisions. IMC falls under the Metals & Mining umbrella and sells non-ferrous metal raw materials and products such as aluminum and copper to customers domestically and overseas in various end markets. IMC also engages in recycling-related businesses centered on iron scrap.
"We appreciated the opportunity to work with PNW’s management team on this strategic transaction that satisfied all their objectives," said Cliff Atherton, managing director of GulfStar. "A global leader in the metals industry, IMC is the right partner for PNW’s second generation to team with in executing their growth plan."
The GulfStar team was led by Managing Directors Cliff Atherton and Tom Hargrove with support from Senior Vice President/Environmental & Sustainability Practice Lead Charles Craig, Associate Gaddis House and Analyst Billy Conner.
In addition, Foster Garvey PC served as legal counsel, and Moss Adams LLP provided transaction accounting services to PNW. Squire Patton Boggs (US) LLP served as legal counsel to IMC.
About GulfStar Group
GulfStar is a leading middle market investment bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 750 transactions in 37 states and 17 foreign countries across a variety of industries.