Metal Supermarkets, the global leader in small-quantity metal distribution, announced a majority investment from Riverarch Equity Partners (“Riverarch”), a private equity firm. This partnership aims to accelerate Metal Supermarkets’ growth and strengthen its extensive franchise network.
Riverarch Equity Partners, known for its expertise in working with franchise businesses, will leverage its experience to support Metal Supermarkets’ expansion plans across Canada and the United States. The investment signifies a commitment to bolstering the company’s already successful business model. Prior shareholders and members of the management team will retain a minority stake in the company, ensuring continuity and alignment in future endeavors.
Riverarch’s Strategic Investment in a Market Leader
Metal Supermarkets, headquartered in Toronto, Canada, differentiates itself by providing convenient access to a wide variety of metals, catering to both business and individual customers. With no minimum order requirements and an extensive inventory of over 8,000 metal types, shapes, and grades, the company prioritizes customer service and quick turnaround times. This customer-centric approach has enabled Metal Supermarkets to cultivate lasting customer relationships.
Riverarch Equity Partners, based in Pittsburgh, Pennsylvania, invests in established market leaders with strong growth potential. The firm’s $1 billion fourth fund is currently deployed in strategic partnerships like this one with Metal Supermarkets. Riverarch’s investment philosophy centers on collaborating with management teams to accelerate growth and enhance operational efficiency.
Leadership Perspectives on the Partnership
Stephen Schober, President & CEO of Metal Supermarkets, expressed confidence in Riverarch’s expertise in franchising, highlighting their potential to significantly contribute to the company’s future growth. The rigorous due diligence process reinforced the belief that Riverarch is the ideal partner to solidify Metal Supermarkets’ industry leadership, ultimately benefiting both franchisees and customers.
Andrew Wiechkoske, Managing Director at Riverarch, emphasized Metal Supermarkets’ robust foundation, efficient operating model, and the strong performance of its franchisees as key factors in the investment decision. Riverarch recognizes the value of the company’s collaborative partnerships and is dedicated to supporting the continued success of its franchise network. This investment will further capitalize on Metal Supermarkets’ current momentum, driving sales growth and expanding market reach. Baird served as the financial advisor to Metal Supermarkets for this transaction.
A Future Focused on Growth and Innovation
The partnership between Riverarch Equity Partners and Metal Supermarkets marks a pivotal moment in the company’s journey. By leveraging Riverarch’s financial and strategic resources, Metal Supermarkets is well-positioned to accelerate its growth trajectory, expand its market presence, and enhance its franchisee support system. This investment underscores the company’s commitment to innovation, customer service, and its vision for continued success in the metal distribution industry. This strategic alliance promises a future of sustained growth and market leadership for Metal Supermarkets.
