Steel Mills
SDI Acquires Equity in Galvalume Distributor
Written by Sandy Williams
February 3, 2019
Steel Dynamics Inc. announced it will acquire a 75 percent equity interest in Galvalume supplier United Steel Supply (USS), with an option to gain the other 25 percent in the future.
United Steel Supply, Austin, Texas, is a leading distributor of painted Galvalume flat rolled steel used for roofing and siding applications. The company operates four distribution centers in Mississippi, Indiana, Arkansas and Oregon.
Steel Dynamics will purchase the equity interest for $134 million, comprised of $92 million in cash and the assumption of $42 million in apportioned debt.
Steel Dynamics currently supplies flat rolled steel to USS from its Columbus, Miss., and Butler, Ind., Flat Roll divisions and expects that volume to grow as a result of the acquisition.
“United Steel Supply provides an exciting opportunity to expand our painted Galvalume® value chain, by affording us with a better opportunity to provide our high-quality flat roll steel directly to this important market segment,” said Mark D. Millett, SDI President and Chief Executive Officer. “United Steel Supply has a reputation for best-in-class service, short supply lead-times and strong customer relationships. We believe this partnership will provide a strong cultural fit with Steel Dynamics. We are eager to welcome the United Steel Supply employees and customers, and we look forward to our mutual growth and success.”
Current United Steel supply owners Bret Curtis and Will Waldrip will continue to lead USS in their current capacities as President and Vice President, respectively.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
CMC to strengthen precast position with Foley Products acquisition
Commercial Metals Co. (CMC) will acquire Newman, Ga.-based Foley Products Co. for $1.48 billion, making it the number three US precast concrete producer.
Cliffs posts Q3 loss, but sees upside in slab contract exit and auto deals
Cleveland-Cliffs Inc. pointed to signs of recovery in its third-quarter earnings report on Monday. Improved automotive volumes and a better product mix drove sequential gains, but the steelmaker’s financials continue to bled red.
CMC Q4 profits rise on improved market conditions
CMC reported higher net earnings in its fiscal fourth quarter on "better market conditions" across its segments.
AISI: Raw steel production drops to multi-month low
After being historically strong for more than four months, US raw steel production fell for a second week.
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.