Ryerson, Olympic bet big on merger as steel slump enters third year

Olympic Steel CEO Rick Marabito called the deal an opportunity to unlock value for shareholders, customers, employees, and communities.

The executives emphasized synergies totaling $120 million over two years. They cited complementary product portfolios and geographic footprints (see images below).

Ryerson, historically overweight in stainless and aluminum, will gain Olympic’s heavier exposure to carbon steel, they explained.

A slide presentation alongside the call showed the combined company’s product mix will be about 34% carbon flats, 23% stainless, 18% aluminum, 14% carbon longs, 10% carbon plate, and 1% other.

The companies expect additional efficiencies from procurement scale, workforce attrition, and shared digital and processing capabilities.

Industry slump

The merger comes as the steel industry weathers what the executives described as a downturn that’s now stretching into its third year. Service center shipments have fallen both sequentially and year over year, with carbon steel margins under pressure and OEM demand running well below forecast.

While tariffs and trade policies have provided some price support, demand has not recovered. Lehner said this has created a recessionary backdrop that has lasted far longer than the typical four-to-six-quarter downcycle.

“For the last three years, all we’ve had is face burn,” he said of the industry headwinds.

He noted the downturn has hit stainless and aluminum shipments particularly hard, with shipments declining by more than 20% since late 2022, and nickel prices collapsing by more than half.

By contrast, carbon steel shipments have declined by about 5% during that period. The Ryerson CEO said this underscores the strategic logic of Olympic’s carbon-heavy portfolio.

However, both Lehner and Marabito believe, “We’re due for some tailwinds.”

Primed to capture upside

Both companies highlighted their recent capital investments – nearly $480 million combined – in automation, processing hubs, ERP systems, and digital platforms. With much of that spending complete, they said the merged entity is “primed” to reap returns once demand normalizes.

The executives framed the slump as both a challenge and an opportunity – a test of operational discipline today, and a chance to emerge stronger and capture the upside when demand eventually returns.

The merger also broadens the companies’ reach into growth markets like infrastructure, reshoring, fabrication, and data centers.

Ryerson cited Olympic’s push into end-product manufacturing, including components for HVAC systems and industrial equipment, as a margin-enhancing complement to Ryerson’s service-center strengths.

Together, they said, the combined company will be more diverse, less cyclical, and better equipped to deliver consistent returns across market cycles.

Governance

Governance of the new company will feature an expanded 11-member board, with four directors from Olympic and seven from Ryerson.

Lehner will remain CEO, and Marabito will take on the president and COO roles.

The all-stock transaction is expected to close in the first quarter of 2026.