Mill Services Corp. has closed its previously announced acquisition of Tube City LLC. The investment was led by Wellspring Capital Management LLC and certain managers from both companies. Terms of the deal were not disclosed.

Mill Services Corp., a portfolio company of Wellspring, is a holding company which owns International Mill Service, a provider of outsourced mill services to the North American steel industry. With the acquisition of Tube City, Mill Services Corp. will offer a complete range of products and services for the steel manufacturing industries, including metals recovery, scrap management, outsourced purchasing, and ancillary services. The new company will have unmatched geographic reach and the flexibility to service the largest global steel producers as well as local foundries.

"This is an extraordinary opportunity to build on the strengths and relationships of two great companies," said Michael Coslov, CEO of Mill Services. "With our combined resources, we will be able to serve our customers more effectively and efficiently."

Tube City Holdings provides outsourced purchasing, scrap optimization, slag processing, metal recovery, scrap management and other specialty services to the global steel industry. Tube City Chief Executive Officer Michael Coslov will serve as the new company’s CEO and Joseph Curtin, formerly President of Tube City, will serve as President and Chief Operating Officer of the Tube City division.

Houlihan Lokey Howard & Zukin, an international investment bank, served as exclusive financial adviser to Tube City Holdings in the transaction. Houlihan Lokey completed the assignment for private equity investment firm Blue Point Capital Partners a year after recapitalizing Tube City with equity from Blue Point Capital.

Wellspring Capital Management LLC is a New York-based private equity firm that manages over $1.0 billion in equity capital. The firm is focused on acquiring companies where it can realize substantial value by contributing management expertise, innovative operating and financing strategies and capital.

Based in Glassport, Pa., Tube City LLC provides outsourced purchasing, scrap optimization, slag processing, metal recovery, scrap management and a wide range of specialty services to the global steel industry.

Based in Horsham, Pa., International Mill Service, Inc. provides slag processing, metal recovery, materials handling, scrap management, surface conditioning ("scarfing") and a wide range of specialty services to the North American steel industry.

Houlihan Lokey Howard & Zukin, an international investment bank established in 1970, provides a wide range of services, including mergers and acquisitions, financing, financial opinions and advisory services, and financial restructuring. Houlihan Lokey has ranked among the top 20 M&A advisors in the U.S. for the past 12 years, has been the No. 1 provider of fairness opinions for the past four years, and has the largest financial restructuring practice of any investment bank in the world.