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
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