Latrobe Specialty Metals, Inc.

Where others saw:

An under-managed corporate subsidiary  focused on low margin tool steels receiving limited support from its parent company

We envisioned:

A company poised to grow into high-value specialty metals and super alloys in order to serve highly technical growing markets

Watermill:

  • Acquired Specialty Steel Supply, Inc. in 2008, a distributor of high quality specialty steels
  • Invested $60M in new Vacuum Inducted Melting (VIM) and Vacuum Arc Remelting (VAR) furnaces to increase high-margin capacity by 200% and 30% respectively and enable super alloy capabilities
  • Hired new CEO to lead the company through a public offering, received purchase offer before going public
We implemented our strategy and exited the investment to a strategic buyer for an overall return of nearly 10x invested capital.