Trimaran in $340m manufacturing exit

Trimaran paid around $200m for Standard Steel, whose customers include Amtrak, in 2006.

New York-based mid-market firm Trimaran Capital Partners has agreed to sell wheel-manufacturer Standard Steel to Sumitomo Metals for $340 million. The sale is expected to close by the end of 2011.

Pennsylvania-based Standard Steel was established more than 200 years ago and provides steel wheels and axles for use in freight railcars, locomotives and passenger railcars, selling to customers including Amtrak.

Trimaran paid approximately $200 million for the company in 2006, a source close to the situation told Private Equity International, investing from its second fund that closed on $1.04 billion in 2001. The firm's third fund closed on $1.25 billion in 2006.

Trimaran typically invests $25 million to $100 million in transactions ranging in value from under $100 million to $1 billion. The firm was co-founded in 1995 by managing partners Jay Bloom and Dean Kehler. Prior to founding Trimaran, Bloom and Kehler were both vice chairmen of CIBC World Markets and co-heads of CIBC Argosy Merchant Banking Funds.

Since its founding, Trimaran has invested over $1.5 billion in 61 private equity investments. In addition to private equity, the firm operates Trimaran Credit Managers, which manages investment activities for a number of funds established to make credit based investments; and Trimaran Credit Managers, which manages collateralised loan obligations that invest in below investment-grade corporate debt.

Skadden Arps Slate Meagher & Flom acted as legal counsel to Trimaran on the exit.