Steel Mills
Ryerson to Acquire Central Steel & Wire
Written by Tim Triplett
June 5, 2018
Two venerable Chicago-based metals distributors are joining forces, marking the latest big merger in the consolidating service center sector. Ryerson Holding Corp. has agreed to acquire Central Steel & Wire Co. in a transaction valued at $140 million.
Acquisition of Central Steel and Wire will solidify Ryerson’s position as the second largest service center organization in the industry with combined annual revenues of nearly $4.0 billion. Central Steel & Wire was ranked 21st in last year’s Metal Center News Service Center Top 50.
Central Steel & Wire has a rich history and valued brand spanning more than 100 years, offering a wide selection of products and capabilities, with a commercial portfolio centered on bar, tube, plate and sheet products. The service center operation employs approximately 900 workers staffing six locations across the central and eastern U.S. producing annual revenue of around $600 million. Central Steel & Wire will continue to operate under its current brand name following the closing of the transaction.
“Since 1909, Central Steel & Wire has cultivated a loyal customer following as an industry standard bearer of customer service,” said Eddie Lehner, Ryerson’s President and Chief Executive Officer. “Ryerson’s acquisition of Central Steel & Wire into the Ryerson family of highly valued industrial metal distribution and processing companies takes Ryerson’s ability to provide great customer experiences to another level. By supporting and further developing the Central Steel & Wire brand in the marketplace, Ryerson continues along a smart growth trajectory that we expect to add meaningfully to shareholder value in the years to come.”
The transaction has been approved by the companies’ boards and a majority of shareholders, but is still subject to regulatory approval. The parties expect to close the deal during the third quarter.
Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico and China. Founded in 1842, Ryerson employs around 3,700 in approximately 100 locations. It reported 2017 revenues of $3.4 billion.
Ryerson has been active on the acquisition front recently, announcing its purchase of Fanello Industries, a Lavonia, Ga., service center and processor, in April.
Tim Triplett
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