Reliance Steel & Aluminum Co. Acquires Southern Steel Supply, LLC
01 Mai 2023 - 12:50PM
Reliance Steel & Aluminum Co. (NYSE:RS) announced that it has
acquired all the outstanding equity interests of Southern Steel
Supply, LLC (“Southern Steel”), a metals service center that offers
merchant and structural steel, pipe and tube, steel plate,
ornamental products and laser cut and fabricated parts. Founded in
1961 and located in Memphis, Tennessee, Southern Steel supplies
customers throughout Tennessee, Mississippi, Arkansas, Alabama, and
Missouri. Southern Steel will operate as a subsidiary of Siskin
Steel & Supply Company, Inc. (“Siskin”), a wholly owned
subsidiary of Reliance. Siskin also acquired the related real
estate assets of Southern Steel. The current management team will
remain in place. For the twelve months ended December 31, 2022,
annual net sales for Southern Steel were $62.9 million. The terms
of the transaction were not disclosed.
“Southern Steel’s reputation for on-time delivery
and superior customer service aligns well with our business model
and disciplined methodology of acquiring high quality companies
with strong management teams that expand Reliance’s geographic
footprint and value-added processing capabilities,” commented Karla
Lewis, President and Chief Executive Officer of Reliance. “The
addition of Southern Steel under Siskin expands Siskin’s geographic
reach and will broaden Southern Steel’s product mix for its
customers as well as provide them access to a wide range of
capabilities through Reliance’s vast network of metal service
centers. Southern Steel will further benefit from Reliance’s
long-standing mill relationships and significant investments in
capital expenditures to promote further growth as well as
back-office efficiencies from Siskin.”
About Reliance Steel & Aluminum
Co. Founded in 1939, Reliance Steel & Aluminum Co.
(NYSE: RS) is a leading global diversified metal solutions provider
and the largest metals service center company in North America.
Through a network of approximately 315 locations in 40 states and
12 countries outside of the United States, Reliance provides
value-added metals processing services and distributes a full-line
of over 100,000 metal products to more than 125,000 customers in a
broad range of industries. Reliance focuses on small orders with
quick turnaround and value-added processing services. In 2022,
Reliance’s average order size was $3,670, approximately 50% of
orders included value-added processing and approximately 40% of
orders were delivered within 24 hours. Reliance Steel &
Aluminum Co.’s press releases and additional information are
available on the Company’s website at rsac.com.
Forward-Looking Statements This
press release contains certain statements that are, or may be
deemed to be, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may include, but are not limited to, discussions of
Reliance’s industry and end markets, business strategies,
acquisitions, and expectations concerning the Company’s future
growth and profitability and its ability to generate industry
leading returns for its stockholders, as well as future demand and
metals pricing and the Company’s results of operations, margins,
profitability, taxes, liquidity, macroeconomic conditions,
including inflation and the possibility of an economic recession or
slowdown, litigation matters and capital resources. In some cases,
you can identify forward-looking statements by terminology such as
“may,” “will,” “should,” “could,” “would,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“preliminary,” “range,” “intend” and “continue,” the negative of
these terms, and similar expressions.
These forward-looking statements are based on
management's estimates, projections and assumptions as of today’s
date that may not prove to be accurate. Forward-looking statements
involve known and unknown risks and uncertainties and are not
guarantees of future performance. Actual outcomes and results may
differ materially from what is expressed or forecasted in these
forward-looking statements as a result of various important
factors, including, but not limited to, actions taken by Reliance,
as well as developments beyond its control, including, but not
limited to, the possibility that the benefits of acquisitions may
not materialize as expected, the impacts of labor constraints and
supply chain disruptions, the continuing pandemic and changes in
worldwide and U.S. political and economic conditions such as
inflation and the possibility of an economic recession that could
materially impact the Company, its customers and suppliers and
demand for the Company’s products and services. The extent to which
the continuing COVID-19 pandemic may negatively impact the
Company’s operations will depend on future developments which are
highly uncertain and cannot be predicted, including the duration of
the pandemic, any reemergence or mutations of the virus, the
actions taken to control the spread of COVID-19 or treat its
impact, including the speed and effectiveness of vaccination
efforts, and direct and indirect effects of the virus on worldwide
and U.S. economic conditions. Deteriorations in economic
conditions, as a result of inflation, economic recession, COVID-19,
the conflict between Russia and Ukraine or otherwise, could lead to
a decline in demand for the Company’s products and services and
negatively impact its business, and may also impact financial
markets and corporate credit markets which could adversely impact
the Company’s access to financing, or the terms of any financing.
The Company cannot at this time predict all of the impacts of
inflation, product price fluctuations, economic recession, the
COVID-19 pandemic or the Russia-Ukraine conflict and related
economic effects, but these factors, individually or in any
combination, could have a material adverse effect on the Company’s
business, financial position, results of operations and cash
flows.
The statements contained in this press release
speak only as of the date that they are made, and Reliance
disclaims any and all obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or for any other reason, except as may be required by
law. Important risks and uncertainties about Reliance’s business
can be found in “Item 1A. Risk Factors” of the Company’s Annual
Report on Form 10-K for the year ended December 31, 2022 and in
other documents Reliance files or furnishes with the United States
Securities and Exchange Commission.
CONTACT:
(213) 576-2428
investor@rsac.com or Addo Investor Relations (310) 829-5400
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