Private equity company Next Capital has taken a 73.6 per cent stake in steel company RPG Australia.
The deal is valued at $92 million and marks the fifth investment by the Next Capital fund since July 2006.
"The firm is delighted to have completed its second significant investment in the steel industry," Next Capital co-founder Patrick Elliot said.
"RPG is strategically poised to capitalise on the substantial growth in private and public infrastructure investment, with core markets in renewable energy, water, ports, defence, mining and construction."
RPG provides steel towers to the wind farm market and diameter piping to the Australian mining and infrastructure sectors.
"The private equity route represented the best of all outcomes for RPG, giving us the ability to grow on our already successful business model to boost sales and increase productivity," RPG managing director Barry Cox said.
It is the second steel plant investment by Next Capital. In July 2006, it bought a 55.6 per cent share in steel manufacturer SteelForce.
Next Capital began in October 2005 and was formed by former Macquarie private equity directors Sandy Lockhart, Patrick Elliott and John White.
The Next Capital fund, backed by 16 institutional investors, has $465 million worth of investments.
