A Steel Family

After returning from World War II, my grandfather partnered with General Walter Hanna, assuming the role of President of Hanna Steel Corporation. My father joined the company after graduating from Auburn University in the 1960s and eventually became Executive Vice President of Hanna Steel. In the late 1980s, the General passed away amid one of the most trying times for the steel industry and my family made the decision to part ways with Hanna Steel. Our family sold our interest in Hanna Steel and purchased Southland Tube in 1995. We worked tirelessly to build the third-largest producer of structural steel tubing, or HSS, as it’s commonly called in the industry, by building honest and lasting relationships with our employees, suppliers, customers, and other stakeholders, including the steel community. My life and career have taught me that relationships, specifically people, in the steel industry are the secret ingredient to success. Both my father and grandfather taught me that developing relationships, building trust, and cultivating a spirit of service are always the goal and should be the objective in every business endeavor. That value was not lost on me.

Who Am I?

Like most folks working in the steel industry, I learned the trade by doing the work. My grandfather and father were both in the steel industry and taught me the business from a young age. My family has worked in the steel industry since the boom following World War II. I got my first job working at the mill at the Hanna Steel Corporation, one of the largest steel corporations in the Southeastern United States at the time. I worked for the plant manager, learning the ins and outs of operating a steel mill. More importantly, I learned what it takes to thrive in a harsh industry where many fail. I also learned that the people are what make this industry special and unique, and they truly make any steel company succeed.

After graduating from Auburn University, I took all the knowledge I gained in practice and my newfound business knowledge and started working in administration at the mill. Quickly, I learned how to requisition steel, and soon after, I oversaw all steel requisitions used at the mill. My family had purchased Southland Tube by that time, and I took all the skills I learned at Hanna and Auburn and applied them to building that business. Over many years of hard work, I was promoted to Executive Vice President and reported directly to the President and CEO. During my career at Southland Tube, I focused on customer and supplier relationships, company growth through M&A, facility expansion, and commissioning new production lines. In 2016, my family decided to sell our company after being approached by a strategic buyer. Although the process was incredibly emotional at times, I successfully navigated the murky waters and led the sale of the family business to a publicly traded Fortune 500 company.

What Makes You Different from Other Investment Bankers?

Most investment bankers enter the business through the traditional route of college or after they finish their MBAs. They start as analysts at investment banking firms, then work up to associates and then a Managing Director. However, they are generalists working with many companies in different industries. Even if they “specialize”, it’s usually in a type of industry—such as the “industrial sector”. I’ve spent my life as a proud member of the steel industry and worked in a mill before I attended college. I went to school specifically to acquire the knowledge necessary to help build and operate a successful steel company. Moreover, I have bought and sold companies in our industry. I know the players and their histories. I understand their unique and distinct cultures. Typical investment bankers have not lived a steelworker’s life. My perspective and how I engage with companies are unique because I was raised, worked, studied, and succeeded in the steel industry.

The Difficulty in Selling One’s Family Business

Selling my family business was a nearly impossible decision that we, as a family, ever had to make. My identity and a sense of purpose came from that business, and the steel community had become our extended family. My family spent more than 70 years owning and operating businesses and leading teams in the steel industry, and all my childhood memories were of me in a steel mill with my grandfather and father. I still feel emotional about the sale, some six years later. My life as the grandson and son of steel men, coupled with my lifelong career in the steel industry, gives me a unique experience that shapes how I do business with family-owned steel companies. I put people first because I’ve been there, and the decision to sell wasn’t easy. Therefore, you should expect your investment banker to understand that difficult decision and provide wise counsel.

M&A and Steel

Unfortunately, buying and selling steel companies isn’t for the faint of heart. The industry is as unique as the people. Moreover, the M&A process can be confusing, grueling, and emotional. More importantly, you likely have one opportunity to do this correctly. While some companies in the industry have more than one opportunity to buy or sell or have even completed several M&A transactions in the past, the majority of M&A activity in the steel industry is a one-shot deal. That’s why it is vital that you work with an investment banker that you trust and who understands not only the industry but your specific business. Unfortunately, most typical investment bankers do not have the same emotional connection to the industry that I do. The steel community has been a part of my life since childhood. My family and I have spent many years building relationships with owners of steel companies and their families and would not sacrifice those relationships for short-term gain. Our industry is too important to the nation and the communities in which we work. My approach is based on building relationships built on trust and service to the community. I will work tirelessly to get you the best deal possible because your company, family, and employees deserve it.