Steel Mills
Majestic Buys Merit to Expand West Coast Presence
Written by Michael Cowden
August 18, 2021
Majestic Steel USA has acquired West Coast service center Merit Steel USA in a push to expand its presence in the region.
The Cleveland-based service center said persistent supply chain constraints bolstered the case for growing its footprint west of the Rocky Mountains.
Terms of the deal were not disclosed.
“Merit has a strong reputation as a West Coast service center. This acquisition enhances our position in the Western region of the country and is a natural extension to our current business model,” Majestic Steel President and CEO Todd Leebow said in a statement.
Merit has locations in Pittsburg, Calif.; Fontana, Calif.; and Longview, Wash. – in other words, close to major West Coast flat-rolled steel suppliers.
USS-UPI LLC, the West Coast subsidiary of U.S. Steel, is based in Pittsburg. Slab converter California Steel Industries (CSI) is based in Fontana. And Longview is approximately 10 miles from the Kalama, Wash., operations of Steelscape – a subsidiary of Australian steelmaker BlueScope that makes metal coated and painted steel coils.
M&A expert Dan Sullivan – founder of Chicago-based Montrose Advisors – noted during an SMU Community Chat last month that private equity was more likely to acquire downstream manufacturing operations whereas service centers were more likely to acquire other service centers.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
CRU: Blackout knocks out ArcelorMittal mill ‘for months’
Truchas works in Lazaro Cadenas, Michoacan, western Mexico. Repairs may take up to six months.
Nippon Steel posts quarterly loss on cost to buy U.S. Steel
Nippon Steel earnings take hit from buy of U.S. Steel.
Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.
ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.