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
Domestic mill shipments slip in July: AISI
US steel shipments decreased month over month in July, but were up from last year, according to the latest figures from the American Iron and Steel Institute (AISI).
Nippon and USS drop litigation vs. USW and Cliffs
Another chapter of the Great U.S. Steel Buyout of the 2020s melodrama has closed, with all involved parties terminating the litigation disputes between them.
Steel Summit: Analysts say demand likely to struggle until 2027
Steel industry analysts at this year's SMU Steel Summit said they see lackluster demand through this year and next.
USS Clairton begins full production of batteries 19 and 20, 13 and 14 hot idled
U.S. Steel has activated batteries 19 and 20 at its Clairton Coke Works facility after pausing each “out of an abundance precaution” following an explosion at the site on Aug. 11.
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.