Business Forum • 16 January, 2025 at 11:28 AM
GLGH Steel, LLC has agreed to purchase Artrom Steel Tubes S.A., the Romanian seamless steel tubes producer based in Slatina and Resita. GLGH Steel is a subsidiary of Great Lakes Global Holdings (GLGH), the investment company based in Chicago, Illinois.
In announcing the transaction, GLGH Founder and Managing Partner, Adam Hitchcock, said: “We are very excited about making this acquisition. Artrom Steel Tubes S.A. is a strong, modern industrial company based in Romania, with a great future and global potential. We hope to support its growth in the years ahead, in developing new markets in Europe, North America, and beyond.”
The Share Purchase Agreement for the acquisition of Artrom was reached in November between GLGH Steel and Artrom's previous Serbian owners. The transaction is subject to the necessary regulatory approvals from Romanian authorities. GLGH Steel is now working to secure the support of the Romanian Government for this transaction, which would put the future development of Artrom on the right track.
“Because we are interested in exploring new opportunities for Artrom,” Hitchcock said, “we hope that the new government can move as quickly as possible with the necessary steps to enable Artrom to engage in normal business operations. Provided that these conditions will be met, we are confident that Artrom can embark on a new business trajectory, focusing on strategic areas such as defense production and decarbonization, which require substantial investments from our group.” This transaction will ensure that thousands of jobs will be protected in southern Romania's Olt and Caras-Severin Counties and millions of dollars will flow into the local economy in the coming years. Moreover, the company will benefit from a sustainable and constant investment flow, allowing it to develop and extend other production lines and access new markets.
Adrian Popescu, Chairman of the Board of Directors of Artrom, “thanked the previous owners for their diligent efforts leading the company through a difficult period” and “expressed excitement about the future under new ownership – a future focused on implementing the company's development plans without delay.”
Currently, Artrom Steel Tubes S.A. employs over 2,000 people and is the market leader in the production of steel tubes. The company brings a solid tradition and a diverse client base to the GLGH Steel portfolio, making it a key pillar for the energy, mechanical, and oil and gas industries. Through this transaction, GLGH Steel reaffirms its commitment to safeguarding the jobs of Artrom's employees and supporting the company's continued development. This commitment is reflected in strategic investment plans designed to ensure not only stability but also long-term competitiveness. As a result, Artrom will maintain its leadership status in the industry while benefiting from the resources and global vision provided by GLGH Steel.
Prior to founding GLGH, Mr. Hitchcock was Managing Director at Guggenheim Partners, a leading global investment and advisory firm with over $300 billion in assets under management worldwide, reporting to the executive chairman. Before entering the financial industry, he served in the U.S. Government, at the White House in the Office of the Chief of Staff and the Council of Economic Advisers. He previously served as a member of the Council on Climate at the Export-Import Bank of the United States.