Breaking News: M&A blockbuster as Ryerson, Olympic Steel announce merger

“The transaction is expected to generate approximately $120 million in annual synergies by the end of year two,” the national service center chains said in a joint statement on Tuesday.

They noted it will bring “Olympic Steel’s complementary footprint, capabilities, and product offerings into Ryerson’s intelligently interconnected network of value-added service centers.”

“We believe this merger presents our shareholders with increased earnings potential in the form of accretive margins, strong cash flows, and compelling synergies,” Ryerson President and CEO Eddie Lehner said.

Lehner will serve as CEO of the combined company. Olympic Steel CEO Richard Marabito will take on the role of president and COO.

Further terms

Olympic shareholders will get 1.7105 Ryerson shares of common stock for every Olympic share of common stock owned. They will own approximately 37% of the combined company.

The deal is “subject to the satisfaction or waiver of customary closing conditions and the receipt of regulatory and shareholder approvals.”

Additionally, Michael D. Siegal, executive chairman of Olympic’s board, will be appointed chairman of the board of the combined company.

“Olympic Steel will also appoint three other mutually satisfactory directors to the combined 11-member board,” according to the statement.

CEOs cheer

“I look forward to working with Rick and the entire Olympic Steel organization with shared mission, passion, and purpose to unite our teams in reaching our vast potential together,” Lehner said.

Marabito also lauded the merger. “We are thrilled to merge with Ryerson and for all of the opportunities that becoming a $6.5-billion company will provide to our key stakeholders,” he said.

Ryerson is a Chicago-based metals distributor and processor witih a network of service centers across the US, Canada, and Mexico.

Cleveland-headquartered Olympic is a metals service center and processor with facilities across the US and Mexico.