Metal Partners Rebar, LLC

Client Profile

Headquartered in Miami, Florida, Metal Partners Rebar, LLC and its affiliates (collectively “MPR” or the “Company”) is one of the largest independently-owned fabricators of reinforcing bars (“rebar”) and other steel products in the United States. Founded in 2008, the Company supplies steel and epoxy-coated rebar, wire mesh and dowel bars with custom fabrication and value-added services to a diverse customer base that includes large national construction firms as well as regional firms such as construction suppliers, pre-casters, contactors and other fabricators.

Situation

After growing into a nationally-recognized leader in the specialty construction market, Metal Partners encountered a series of operational and financial challenges that affected its profitability and liquidity. Performance was negatively impacted in recent years due to tariffs on imported steel and increased competition in the rebar market. While the Company attempted to mitigate these issues by focusing on its higher-margin fabrication business, the global pandemic negatively impacted volume throughout 2020 and impaired its operational restructuring efforts. Additionally, MPR faced litigation from a former joint venture partner, substantial trade debt, and also carried a senior debt balance that was significantly undercollateralized. As a result, the Company determined that filing for Chapter 11 protection provided the best opportunity to effectuate a transaction and maintain the business as a going concern.

Solution

SSG was retained for the purpose of marketing the business and soliciting competing offers to the proposed stalking horse bid, which was negotiated pre-petition. While the process attracted interest from several parties, the stalking horse bid from JRC OpCo LLC was deemed the highest and best offer for the Company’s assets. SSG’s experience in conducting expedited Chapter 11 sale processes enabled all key stakeholders to maximize value while preserving the going concern business and jobs.