Houlihan Lokey Advises Mill Rock Capital

Houlihan Lokey is pleased to announce that Venture Metals (Venture) and Mill Rock Capital Management (Mill Rock) have acquired Versatile Processing Group (VPG). The transaction combines two leading U.S. scrap metal solutions' providers of comparable size to create a platform with annual revenues in excess of $700 million. In connection with this transaction, Mill Rock and its affiliates made a strategic investment in Venture in partnership with the management team.

Mill Rock is a growth- and operations-oriented private investment firm that invests in well-positioned middle-market industrial businesses in North America. Mill Rock is purpose-built to invest in family-owned businesses, owner-operators, and founder-led companies across six industry verticals in which the team brings more than 500 years of direct operating experience. Focus sectors include chemicals and materials, industrial distribution, services, metals, transportation and logistics, and specialty manufacturing. Mill Rock supports business transformation through a dual-sourcing strategy encompassing majority equity and Activ Capital®—debt, senior equity, or hybrid investments which provide business owners value-added financial partnerships without relinquishing a controlling stake. Mill Rock is based in New York and is an affiliate of Stellex Capital Management LP.

Venture Metals procures, processes, and sells nonferrous scrap metal for recycling and remelting purposes and is based in Dallas, Texas. Founded in 1986, the company has grown to become a leading provider of industrial recycling solutions. The company offers tailored, turnkey solutions to collect, remove, sort, process, and sell recycled metal generated as a by-product of a production process. Building relationships on transparency and trust, Venture is recognized for its high standards of safety, sustainability, and quality. Venture operates two processing facilities in Dallas and Houston, Texas.

VPG is a leading industrial processor of nonferrous and other metals servicing the manufacturing, electric utility, and metal recycling industries. VPG is headquartered in Indianapolis, Indiana, and serves customers nationwide from its facilities in Des Plaines, Illinois; Nabb, Indiana; and Wills Point, Texas. VPG is highly-regarded for its value-added processes, superior customer service, and first-rate execution. The company has a particular expertise in difficult-to-process materials, and its specialized capabilities include industrial-scale recycling of insulated wire and cable, de-tinning and de-oiling, and utility meter recycling.

Houlihan Lokey served as financial advisor to Mill Rock on its investment in Venture and the subsequent acquisition of VPG. This transaction underscores Houlihan Lokey's long-standing reputation and credentials as a premier advisor to the global metals sector.