Equity firm buys Tube City.

A private equity firm based in Cleveland has purchased a majority interest in scrap processing and steel mill services company Tube City LLC, King of Prussia, Pa.

Blue Point Capital Partners, with offices in Cleveland, Seattle and Charlotte, N.C., used its own equity as well as funding provided by Tube City management and funds borrowed from four banks to make the purchase.

"Tube City has grown due to its strong focus on the customer," Blue Point principal Chip Chaikin remarks. "Tube City's expertise enables the company to perform a wide variety of functions outsourced by their customers, saving them money and time. We are excited to partner with Tube City's impressive management team and look forward to expanding this strong platform into both enhanced services and new geographies."

Tube City provides scrap management, slag processing and metal recovery services to integrated steel mills, mini-mills and foundries throughout North America and to U.S. Steel Co. mills in Eastern Europe. In a March 2002 Recycling Today effort to find the 20 largest ferrous scrap processors in the U.S., Tube City ranked third.

Blue Point bills itself as a large private equity firm focusing on investments in manufacturing, distribution and service businesses addressesing industrial and consumer markets. Tube City is the 13m investment in Blue Point's portfolio.