PRIVATE EQUITY PROFESSIONAL - CDM

Slate Capital Acquires Specialty Metals Distributor

July 18, 2023

Slate invests in companies with cash flows of $3 million to $15 million and the CDM buy expands current portfolio to four operating companies.

Slate Capital Group has acquired Cumberland Diversified Metals, a distributor and broker of specialty metals.

Cumberland Diversified Metals (CDM) specializes in prime and secondary stainless steel, prime and secondary aluminum, titanium and nickel. CDM has process capabilities – cutting, blanking, shearing, slitting, and polishing – for sheet, plate and coil formed stainless steel and aluminum.

Cleveland-headquartered CDM, led by CEO Alex Newman, was founded in 1985 and buys and sells its products throughout the United States, Canada, and Mexico.

“We believe that the demand for specialty metals like aluminum and stainless steel will continue to grow and that customers will need a partner to secure the right supply at the right time for the right price. Cumberland Diversified Metals is the best in the business and provides valuable solutions for its vendors and customers,” said Rick Corcoran, a co-founder and partner at Slate Capital. “We are excited to be part of their ongoing growth plan. And above it all, it was great to complete an investment in Ohio so soon after expanding Slate Capital Group to Cincinnati.”

Slate Capital invests in Eastern US-based companies that have annual cash flow of $3 million to $15 million. Sectors of interest include business services, distribution, and light manufacturing.

In addition to CDM, Slate’s current portfolio investments include Horizon Facilities Services, a Pennsylvania-based provider of outsourced business services (2019), O’Donnell Metal Deck, a Maryland-based distributor of metal decking and steel bar joists used in commercial construction (2021), and Vertical Mechanical Group, a Virginia-based commercial contractor of HVAC and plumbing services (2023).

“We’ve had fortunate experience in the metals industry with O’Donnell Metal Deck, which proved that an accomplished, nimble, and customer-friendly solution provider can really thrive in its niche, especially with mid-sized customers who are often overlooked by the larger distributors and service providers. So, we were delighted when we partnered with Cumberland Diversified Metals, one of the most experienced distributors and brokers of specialty metals in the country,” added Mr. Corcoran.

Slate Capital was founded in 2004 by Mr. Corcoran and Erik Ginsberg and is headquartered in Baltimore with additional offices in Nashville and Cincinnati.

https://peprofessional.com/blog/2023/07/18/slate-capital-acquires-specialty-metals-distributor/