Trasteel is evaluating acquisitions of private, mid-sized steel-processing companies in the US and beyond as the Swiss steel trader looks to accelerate growth ahead of its planned merger with Sizzle Acquisition II, CEO Gianfranco Imperato said.

The Lugano, Switzerland-based company has identified two steel and seamless-pipe businesses as potential targets in the US, two involving traders and stockholders of material in Central Europe and Switzerland, two in Southern Europe, and several targets in the Middle East and other regions, Imperato said.

The businesses under review have equity values of USD 40m or less, he said.

Trasteel typically seeks companies whose valuations have been depressed by succession issues, the death of a founder, or financial challenges, rather than businesses requiring significant operational turnarounds.

“We think we are good at buying private, smaller companies below their intrinsic value, managing them for a period, and ultimately selling them when market conditions allow us to maximize value,” Imperato said.

South America is becoming a region of growing commercial interest, although Trasteel has not identified a standalone acquisition target there, he said. But one of the approximately 10 opportunities currently under review has significant South American operations, including industrial assets, he noted.

Trasteel’s steel-trading business gives it a competitive advantage in identifying acquisition opportunities, the CEO asserted. While trading remains the company’s core business, its industrial activities are more opportunistic and involve acquiring and later disposing of processing businesses.

“In this respect, we are more similar to a specialized private equity fund than a pure trading company,” he said.

The company is receptive to approaches from investment banks pitching M&A targets, but it prefers proprietary transactions to broad auction processes.

In April, Trasteel agreed to combine with special purpose acquisition company Sizzle Acquisition II in a transaction valuing the company at USD 800m on a pre-money equity basis and implying a pro forma enterprise value of about USD 1.3bn.

None of the acquisitions currently under review are expected to close before the SPAC transaction, which remains on track to close before year-end, Imperato said.

With a planned Nasdaq listing approaching, the US is a priority for Trasteel as it seeks to build scale in what Imperato described as a challenging market for foreign operators. In addition to acquisitions, the company may establish a US trading operation.

Trasteel is advancing its US Securities and Exchange Commission filing and has substantially completed the conversion of its financial statements to IFRS, a process that involved both European and US audit teams, he noted.

The transaction is expected to include a private investment in public equity, or PIPE, alongside capital from the SPAC. Combined PIPE proceeds and existing SPAC cash are expected to exceed USD 300m, Imperato said.

Sizzle and Trasteel are discussing the PIPE with a range of strategic and European investors, with three or four parties expected to participate, he said. The fundraising is running in parallel with the merger process and is expected to be completed by year-end.

Cantor Fitzgerald, advisor to Sizzle Acquisition II, is helping source potential PIPE investors. Young America Capital is advising Trasteel on the SPAC deal.

Existing Trasteel shareholders plan to roll their equity into the combined company, Imperato said. A longtime associate of Imperato holds approximately 60% through a family holding company, while Italian shipping group Fratelli Cosulich owns about 13%-14%. Imperato owns roughly 14% of the company.

Trasteel reported USD 1.8bn of revenue in 2025, up 21% year over year and 386% from 2019 levels. It generates about USD 60m in EBITDA and net profit of USD 7.5m. It employs more than 1,400 people and operates in more than 60 countries.

Founded in 2009, Trasteel remained at USD 300m-USD 400m in annual revenue until 2020, when it began a period of rapid expansion, according to Imperato.

The company’s strategy combines physical steel trading with investments in downstream processing businesses. Trasteel uses its trading network and market knowledge to identify companies where ownership transitions or financial circumstances create opportunities to acquire assets below their underlying value.

According to Imperato, the fragmented nature of the steel industry and the limited participation of private equity investors create favorable conditions for the strategy.

Trasteel competes with a relatively small group of specialized steel traders as well as steel-trading divisions of larger commodities houses, the CEO said.

The sector has become regionalized as tariffs, trade restrictions, and logistics challenges make it more difficult to operate globally with the same efficiency as in the past. Whereas steel once traded across regions with relatively similar economics, Trasteel now sees distinct pricing dynamics in Europe, the US, China, South America, and the Middle East. The growing use of steel derivatives also creates opportunities for traders to manage price exposure and assume a larger market-making role, he added.

The decision to pursue a US listing through a SPAC was driven by Trasteel’s desire to access growth capital while preserving its independence, according to Imperato.

The company spent approximately two years exploring options for an equity partner but did not initially anticipate pursuing either a SPAC transaction or a traditional initial public offering. With a conventional IPO considered difficult to execute, he said Trasteel concluded that a public listing via a SPAC was preferable to bringing in an industry investor that could create conflicts of interest given the importance of the company’s independence.