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
AISI: US steel shipments slip in October
Domestic steel shipments were down month over month and on-year in October.
AHMSA assets to be liquidated; workers call for nationalization
A trustee will lead AHMSA through the liquidation stage of its bankruptcy.
Chuck Schmitt, head of SSAB Americas, to retire next year
After a career in steel spanning four decades, Chuck Schmitt, head of SSAB Americas, will retire next year.
Trump still sour on Nippon’s buy of USS; promises tariff, tax incentives
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump said in a post on Truth Social on Monday.
AISI: Output remains low as raw steel production slips
Weekly raw steel production has hovered in this territory for the last two months, now at the sixth lowest rate of the year.