News broke late Wednesday that one of the country's top private equity investment firms, Cerberus Capital Management, has agreed to commit new capital to Sparrows Point, Maryland-based RG Steel.
It is unknown how much capital was invested or if Cerberus will be taking over the ownership role of the company. With this new investment, RG Steel was able to restart operations at the Sparrows Point plant, which had been halted in December. The reopening of the Sparrows Point plant will allow almost all of the laid-off employees to return back to work.
In a press release, RG Steel said that shortly after the Company was formed in March 2011, steel prices sharply declined. This, combined with unprecedented increases in raw material costs, strained liquidity at an early stage in the Company's formation. "With this new capital in place and improving market conditions, RG Steel is well positioned to service its customers now and in the future" stated V. John Goodwin, President and CEO of RG.