Service Center Metals, a Prince George County-based manufacturing company founded by three local businessmen in 2002, has been acquired.
An affiliate of Richmond businessman William H. Goodwin Jr.’s Riverstone Group LLC bought a majority ownership stake in the company, which manufactures aluminum extrusions used in markets such as construction, transportation, equipment and machinery.
Riverstone Group, which owns The Jefferson Hotel and the James Center complex in downtown Richmond, acquired the manufacturing business through its SCM Industries LLC investment entity.
The privately held companies did not disclose the acquisition price.
Service Center Metals was founded by Scott Kelley, Randy Weis and Chip Dollins, who had been employees of Henrico County-based Reynolds Metals Co. before its acquisition by Alcoa Inc. in 2000.
Service Center Metals opened its plant in SouthPoint Business Park in Prince George in 2003. The company has grown to employ 247 people, with annual revenue in excess of $225 million.
Last year, the company announced a $45 million expansion of its factory and the addition of 58 jobs — its fourth expansion since it started operations in 2003.
“We’re excited about having a local company” as the majority owner, said Kelley, the president and chief executive officer of Service Center Metals.
Kelley said he and Dollins and a majority of the management team will remain with the company.
“The good thing is it means we can remain independent and keep our culture intact and keep our growth plans, which they [Riverstone] are fully committed to pursuing,” Kelley said. “We remain a Virginia-based company.”
Riverstone Group is best known for its investments in real estate properties such as The Jefferson Hotel in downtown Richmond; The Sea Pines Resort in Hilton Head, S.C.; and Kiawah Island Golf Resort in Kiawah Island, S.C. It also owns the three-building James Center complex in downtown Richmond.
In a statement, Riverstone said it is “pleased to have the opportunity to invest in one of the area’s outstanding companies.”
“We look forward to assisting them as they expand capacity and strengthen their leadership position in the aluminum extrusion market,” the firm said.
An assistant for Goodwin said he had no additional comment.