Mill Services Corp. has entered into a definitive agreement to acquire Tube City Holdings, LLC, a provider of specialty services to the global steel industry. Terms of the deal were not disclosed.

Wellspring Capital Management LLC, along with key managers of both companies, will lead the investment. Mill Services Corp. is the holding company formed by Wellspring when it acquired International Mill Service, a provider of specialty services to the North American steel industry, earlier this year.

The new company will be a leader in metals recovery, scrap management, scrap agency, and ancillary services to the steel manufacturing industry. Tube City CEO Michael Coslov will serve as the new company's CEO. International Mill Service President & CEO Ray Kalouche will serve as President and Chief Operating Officer of the International Mill Service/Olympic Mill Services Division. Joseph Curtin, formerly President of Tube City, will serve as President and Chief Operating Officer of the Tube City Division.

The transaction will close after required approvals have been obtained and other customary closing conditions have been satisfied.

Based in Glassport, Pa., Tube City Holdings 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.

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.