V&A Capital Completes the Sale of Federal Steel Supply

V&A Capital (“V&A”) is pleased to announce that it has sold its portfolio company Federal Steel Supply, LLC (“FSS” or the “Company”) to a middle-market private equity firm.

Headquartered in Chesterfield, MO and with multiple facilities in Louisiana, Texas and New Mexico, FSS is a leading value-added distributor of industrial products including pipes, fittings, flanges and valves, and provides supporting value-add services.

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Since V&A’s acquisition of FSS from its founders in August 2019, the Company has made significant investments in its people, technology, corporate infrastructure and footprint helping to accelerate FSS’ organic growth. In addition, in October of 2021, V&A originated, negotiated and completed a key complementary add-on acquisition of Process Piping Materials, a leading distributor of fittings, flanges and valves based in Lafayette, LA, which broadened FSS’ product offering, diversified its customer base and expanded its geographic reach. During V&A’s period of ownership, the Company grew from 1 to 5 distribution facilities serving customers in diverse end-markets throughout the US.

These efforts resulted in a greater than four-fold increase in revenue and almost six-fold increase in EBITDA in about 3.5 years. 

V&A’s investors were rewarded with an extraordinary net return on invested capital of up to 30x.

We acquired FSS because we believed we could drive the Company’s growth through product line expansion, add-on acquisitions and geographic and end-market diversification. All of the Company’s perceived competitive advantages that we identified during our due diligence, including its superior mill-direct supply network, diverse customer base, strong margins and outstanding management team have been realized and were successfully leveraged to build a national leader poised for continued growth.

Nicolò Vergani, Managing Partner of V&A

I appreciate the support and dedication of the V&A Capital team in helping to drive the growth of Federal Steel Supply. They have been a great partner to work with and have taken great care helping us transition from an owner-operated company to a much larger and successful business primed for further growth.

said FSS CEO, Scott Harris.

Brown Gibbons Lang & Company served as financial advisor and Loeb & Loeb LLP as legal counsel to V&A and FSS.

About V&A Capital
V&A Capital seeks majority ownership in profitable, well-run companies in North America and Europe with an EBITDA ranging from $1 million to $10 million. V&A invests primarily in the manufacturing and distribution industries but also seeks to acquire companies in the business services, consumer goods, packaging and transportation sectors. V&A’s nimble and highly experienced team has an extensive and successful track record of investing in family-owned or owner-operated businesses, working in partnership with them and management teams to pursue growth while respecting and maintaining the company’s history and culture.

For more information, please visit V&A Capital’s website at www.vandacapital.com. Interested parties may contact V&A Capital through the website as well or reach out at info@vandacapital.com.

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