Platinum Equity announced plans to purchase PNA Group Inc., a steel products processor and distributor with annual revenue of $1.2 billion, from German travel and tourism giant TUI AG.
Financial details of the deal were not disclosed.
TUI, the largest travel and tourism company in Europe, has recently been divesting some of its industrial holdings to focus on its core tourism and shipping sectors, Platinum Equity said in a statement. TUI said it expects the sale to be completed in the second quarter of 2006.
Atlanta-based PNA Group processes steel and distributes it to fabricators, manufacturers and distributors, primarily in the U.S., via three independent business units: Chicago-based rolled steel firm Feralloy, Houston-based steel materials company Delta Steel and Atlanta-based steel structural products company Infra-Metals.
The Beverly Hills-based private equity firm founded by billionaire Tom Gores said the acquisition of PNA Group will help it significantly increase its operations in the steel services industry.
In December, Platinum Equity bought Amherst, N.Y.-based ESM Group Inc., a provider of products and services to the steel production industry with revenue of approximately $150 million.
The acquisition is subject to regulatory approval and normal closing conditions.
For reprint and licensing requests for this article, CLICK HERE.