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Shawnee Tubing Taps Equity Partners HG to Advise in Sale of Business


Shawnee Tubing Taps Equity Partners HG to Advise in Sale of Business

November 11, 2019

Shawnee Tubing Industries, LLC, a manufacturer of smooth and finned copper tubing, has retained Equity Partners HG to seek a buyer for the business. Originally started in 1974 as Wolverine Tube Shawnee in Shawnee, OK, the Company has been producing copper tubing for industrial and construction use for 45 years. The business was acquired by a member of management in April 2017, and was then restructured and acquired by AIAC in July 2018.

Shawnee Tubing Industries manufactures industrial tube in a wide range of wall thickness, diameter and hardness, and currently produces over 200 SKUs. The plant was designed to produce high-quality wall and grain/temper capabilities and its annual capacity is 65 million lbs. per year. STI’s manufacturing facility totals 342,450 sq. ft. on a 49-acre parcel with ample space for expansion. The plant includes 252,550 sq. ft. of manufacturing space, 33,000 sq. ft. of warehouse space, and 39,600 sq. ft. of offices. Equipment includes tube forming and winding equipment, extrusion presses, continuous casting lines, annealing and melt furnaces, fin machines, and general material handling and support equipment.

Keith Keeling, a Managing Director at Equity Partners HG, stated “STI is a great opportunity to acquire significant production capacity with an experienced workforce. Initiatives to establish the Company as the premier source for specialized products, along with developing a major copper recycling operation, are well underway and we are excited to work with STI to explore options as they transition the Company for sustained growth.”

Equity Partners HG, based outside Baltimore, MD, provides investment banking services in special situations and has completed in excess of 550 engagements throughout the United States since 1988.

Firm hired to sell, preserve Shawnee Tubing Solutions

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Shawnee Tubing Solutions, LLC has retained an investment banking firm to assist in the sale and preservation of its business, the company said Monday.

The company said a severe drop in its credit lines, from $33 million to $11 million, has produced a “cash flow crisis.” David Baker, of Aurora Management Group, has been appointed chief restructuring officer and is managing the business through a sale, the company said.

With 300 employees, STS said it is the third largest employer in Shawnee.

The investment banking firm of Equity Partners HG is working with the company, which manufactures a variety of industrial tubing for the HVAC and refrigeration industries, the company said.

“Given its tremendous capacity, its trained workforce, its customer base, and its great location, we believe that some well-funded strategic and financial partners will be interested in acquiring and operating STS in place,” Ken Mann of Equity Partners said in a statement issued by the company.

Equity Partners plans to find a properly capitalized buyer to keep the factory from shutting its doors.

Shawnee Tubing Solutions searches for buyer

 The Fabricator - A publication of the Fabricators and Manufacturers Association, Intl.
Shawnee Tubing Solutions LLC (STS), Shawnee, Okla., has retained investment banking firm Equity Partners HG, Easton, Md., to assist in the sale and preservation of its business.

STS, founded as Wolverine Tube Shawnee in 1974, is a manufacturer of copper tubing selling to manufacturers in the HVAC and refrigeration industries. The 342,450-sq.-ft. plant, which has a total annual capacity of more than 65 million lbs., produced and shipped 36 million lbs. of product in 2017.

With capacity and past experience in plumbing tube production as Wolverine, the company had detailed plans to resurrect that segment of its business in 2018, but a significant drop in supplier credit lines have limited those plans. The firm currently employs 300 people.