June 5, 2006 -- Trimaran Capital Partners, a New York-based, private asset-management group, has agreed to buy Standard Steel LLC for an undisclosed price. Standard Steel, in Burnham, PA, manufactures steel wheels and axles for freight railcars, locomotives, and passenger railcars. The sellers are Citicorp Mezzanine Partners L.P. and certain company managers.
Standard Steel's senior management team, including CEO and president Michael Farrell and chief operating officer Tom Reinecke, will continue in their current positions and are reported as “investors in the transaction.”
"We are experienced investors in the railcar industry, having recently exited our successful investment in FreightCar America, and are firm believers in the continuing strength in the demand for railcars and railcar components," stated Trimaran co-founder and managing partner Jay Bloom.
Mark Dalton, Trimaran managing director, added, "This investment exemplifies Trimaran's investment strategy, as we partner with Standard Steel's management team, which has done an exceptional job of improving the profitability of the company and positioning it for future expansion. Together, we look forward to continuing the company's long tradition of being a key supplier to one of the country's oldest industries."
Farrell expressed confidence that Trimaran's experience in the industry and relationships with railcar manufacturers will complement the Standard Steel teams efforts.