Service Centers

Flack Global Metals takes majority stake in Pacesetter Steel

Written by Laura Miller

Flack Global Metals (FGM) is set to take majority ownership of Pacesetter Steel Service.

Terms of the deal will not be disclosed, but its closing is anticipated for next month, the companies said in a statement on Tuesday.

Both companies are well known in the world of flat-rolled steel. Pacesetter operates service center locations in Atlanta, Chicago, and Houston. FGM is a hybrid industrial company that buys, sells, manufactures, trades, and invests in flat-rolled steel.

FGM said previous investments by its direct equity investment arm, Flack Manufacturing Investments (FMI), focused on OEMs that utilize flat-rolled steel as their main feedstock. This makes Pacesetter the first service center under the FMI umbrella.

Atlanta-based Pacesetter said it chose FGM for its expertise in risk management and hedging, business philosophy, culture, and success in M&A.

Steve Leebow, Pacesetter’s founder and current CEO, commented that “FGM’s expertise on the financial side and [Pacesetter’s] prowess on the physical side” will be complementary.

FGM President Ben Bucci said the company was happy to be approached by Pacesetter for its succession planning.

“Adding a service center as respected as Pacesetter to our mix is an obvious fit, considering that metals distribution is one of FGM’s core competencies. This partnership will result in both organizations’ customers getting the best of both worlds,” Bucci added.

Laura Miller

Read more from Laura Miller

Latest in Service Centers