Mainline Metals

Steel distributor, Mainline Metals, got its start in 1985 and Andrew Geisler was hired a year later, while still a 19-year-old college student, as an intern, starting a lifelong career.

Three years ago, company founder Bob Dubin was looking to retire – and had been calling Geisler his heir apparent. And Geisler was interested but faced a dilemma.

“I didn’t have the money to buy the business,” he said, noting that he could have scraped up about $1 million of what was needed. And the company’s lender was saying capital would be hard to come by.

That’s where MultiFunding enters the picture.

Geisler spoke occasionally with MultiFunding founder and CEO Ami Kassar, with discussions becoming more frequent after a bank said it could help with the succession.

First, they ascertained Dubin’s goals – no personal guarantees and a large chunk of cash up front – as well as Geisler’s – no partners, no venture capital and no mezzanine financing.

“I’ve been running the business for 10 years. Bringing in someone else would be problematic,” Geisler said, stressing that his industry is relationship-driven. “We wanted to have the same company when we got to the end of the deal.”

Kassar shopped around with a handful of banks working with Small Business Administration-backed lending programs. They sought $5 million, but were happy with the $3.3 million, amortized over 25 years which included real estate.

Dubin and Geisler made the transition of power slowly.

“Bob and I visited many of our vendors to explain everything and show them that our financials and balance sheet stayed the same,” Geisler said. “We kept all of our credit lines and everyone was happy.”

Geisler gives Kassar and MultiFunding credit for both helping to make the deal happen and for becoming a friend.

“Ami cares. He just didn’t sign the deal and move on to the next deal. He just genuinely cares about his business and his people,” Geisler said. “He was invested emotionally as well. Outside of your family, there are very few people that take a genuine interest in another person’s life.”

As Geisler mentioned earlier, relationships are important in his industry, so he said he won’t hesitate to use MultiFunding for future financial needs.

“Ami has a lot of good connections,” he said.

For now, Mainline Metals is competing in an increasingly difficult, increasingly price-sensitive market, having to prove its value proposition regularly.

The pandemic has produced both challenges and opportunities – the latter coming from the national realization that manufacturing must go on. Mainline Metals provides, for example, steel to hospital bed manufacturers and makers of hand sanitizer stands, as well as e-commerce providers that need increasing amounts of infrastructure.

The company, which is based in Bala Cynwyd, PA, has a brick-and-mortar facility (Mainline Processing) in Blytheville, Arkansas, and offices in Illinois, Indiana and South Carolina; there are about 35 employees. It maintains over 15,000 tons of inventory that is strategically located at 12 locations. That allows it to rapidly service clients no matter where they might be.

Mainline Metals serves the spot market, they sell Prime, Excess and Secondary Steel-they sell "OEM"'s and stock inventory for a wide customer base. They supply companies that include construction, agriculture and truck and trailer, as well as many others. Their customers and vendors includes plenty that favor strong relationships like the ones Mainline Metals forges.

“I’ve had the same phone number for 35 years,” Geisler said.