Private equity firm Next Capital is sounding out interest from Greenstone Partners in Brisbane-based steel manufacturer Steelforce, it has been reported.
The AFR reported “movement at the smaller end of the steel market” as final bids are being made for Australia’s second-biggest steel company, Arrium.
Steelforce, which distributes, manufactures and trades structured steel, imports products from Asian markets for distribution in Australia and is said to have an annual turnover of more than $300 million.
The report by the AFR’s Street Talk team claims that, while Next Capital had “tapped” Greenstone for the sell-side role, the private equity firm is said “to be happy to maintain its investment should an acceptable offer not be forthcoming”.
The report also explained that the sale of Arrium will put UK industrial company Liberty House and stablemate SIMEC up against a consortium spearheaded by South Korea’s POSCO.