Bringing together two family-owned businesses

Last week, our sister company, Steel Market Update, covered the merger and acquisition of Charter Steel with Niles Iron and Metal. In this article, we will take a broad look into each of the companies.

Charter Manufacturing, based in Mequon, WI, has acquired scrap processor, Niles Iron and Metal, in Niles, OH. Charter Manufacturing has two steelmaking facilities. The main facility is located in Mequon, WI just north of Milwaukee. The other one is in Cleveland, OH about 65 miles west of Niles. Charter also owns two large foundries: Charter Dura-Bar in Woodstock, IL and Charter Aarrowcast in Shawano, WI.

Niles Iron is a multi-service recycling facility in the Mahoning Valley, known for its rich history in steelmaking. Niles operates a hydraulic shear and baler at its facility on South Main St. Niles handles several large industrial accounts in the Youngstown metropolitan area.

Niles possesses several substantial industrial accounts that produce a significant amount of #1 busheling and clips, which Charter consistently purchases. Charter has been contemplating entry into the ferrous scrap business for some time, and Niles presents an ideal opportunity for this venture. Both family-owned companies place a high value on the well-being of their employees and stakeholders.

In 2008, Niles was part of a deal with Scholz of Germany to be acquired along with several area recyclers. Niles’ part of the deal was reported to be $44 million, but Niles ultimately bought back the company from Scholz and has operated independently since then.

According to a source at Niles, Gary Chandler, who was made COO of Niles in 2017, will be the head of the merged entity and Gary Clayman, President, Niles Iron and Metal will have a consultant’s role going forward.

The transaction has been completed. The price of the sale has not been released. Charter will keep the Niles Iron and Metal name and has acquired the entire business, land and all other assets. The only thing they did not acquire is the 20-foot-tall steelworker statue in front of the South Main yard entrance which is constructed of welded pieces of steel scrap. Its fate is not known as of press time.