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O’Neal
Steel Acquires TW Metals
O’Neal Steel, Inc., Birmingham, Ala., has acquired the stock
of TW Metals from Superior Group, a private holding company headquartered
in Radnor, Pa., for an undisclosed amount.
The
transaction marks O’Neal’s fourth acquisition since 1997
and, with the addition of TW Metals’ facilities, brings the
company’s total to more than 60 stocking locations. TW will
operate as a wholly owned subsidiary of O’Neal Steel.
“We
acquired TW for its rich history, outstanding people, leading position
in specialty metals, longstanding customer and supplier relationships
and large distribution network,” says Craft O’Neal, chairman
of O’Neal Steel. “TW further diversifies and expands our
product offerings, enabling O’Neal to broaden our customer
base and improve service to existing accounts.”
TW
Metals stocks and processes pipe, tube, bar, rod, sheet and plate
in stainless, aluminum, alloy and carbon, as well as a variety of
high alloys, such as nickel and titanium from 17 U.S. and three
European facilities in the U.K., Poland and France.
O’Neal
Steel is the largest family-owned, full-line metals service center
in the United States. Prior to acquiring TW, O’Neal was already
ranked in the Top 10 on the Metal Center News Top 50 list of North
American service centers. O’Neal’s family of companies
also includes Metalwest, a light-gauge flat-rolled service center
headquartered in Brighton, Colo.; Aerodyne Alloys, a service center
specializing in aircraft nickel, cobalt and titanium-based alloys
headquartered in Windsor, Conn.; and Leeco Steel, a service center
headquartered in Chicago specializing in abrasion-resistant, extra
high-strength steel.
Metals
USA Merger Back on Track
A potential roadblock to the announced merger between Metals USA
Inc., Houston, and private investment management firm Apollo Management
L.P. has been averted.
Metals
USA shareholders had agreed to a $22 per share all-cash offer from
Apollo in mid-October. But at a conference call with investors discussing
the company’s third-quarter performance later in the month,
Metals USA President and CEO C. Lourenco Goncalves admitted that
his company had failed to meet one of the conditions of the agreement.
Apollo’s
debt-financing agreement required Metals USA to post earnings of
$117.5 million during the previous 12 months, but Metals USA earned
just $114.2 million, as Goncalves expected.
“We
disclosed in our proxy statement we did not expect to meet the minimum
EBITDA requirement,” Goncalves said.
On
Nov. 4, Metals USA reported prospective lenders will consider the
condition satisfied if the EBITDA for the period exceeds $113.8
million.
Metals
USA exceeded another condition of the agreement, that it have at
least $75 million of revolving credit available at the time of the
transaction. Goncalves expects available funding to exceed $100
million.
Metals
USA expects the transaction to be completed in the fourth quarter
of 2005.
Metals
USA announced personnel changes in advance of the merger. Robert
McPherson III will be appointed senior vice president and CFO upon
closing of the pending acquisition, replacing Terry L. Freeman.
Upon completion of the deal, Freeman will pursue other interests.
McPherson
is now senior vice president and president of the Building Products
Group. Gerard Papazian was promoted to president of the Building
Products Group, to succeed McPherson.
Reliance
Signs Agreement for
Chinese Joint Venture
Reliance Steel & Aluminum Co., Los Angeles, has agreed to form
a joint venture that will give the North American service center
giant a stronger presence in Asia.
Reliance
has reached an agreement with Singapore companies New Wave Technologies
Ltd. and its associate Manufacturing Network Pte. Ltd. to form a
joint venture company, Reliance Pan Pacific Pte. Ltd. Reliance Pan
Pacific will be 70 percent owned by Reliance and 30 percent owned
by MNPL.
Upon completion of the transaction, MNPL is expected to sell its
100 percent interest in Everest Metals Co., Ltd., a Chinese metals
service center, to Reliance Pan Pacific.
Everest
Metals was formed in 2001 and began processing and distributing
primarily aluminum products to the electronics industry in 2002.
Everest’s 2004 revenues were approximately $2.5 million.
The
transaction is expected to be finalized in early 2006, subject to
the successful completion of due diligence and regulatory approvals,
including the approvals of the People’s Republic of China and
the shareholders of New Wave.
“We
are very excited about this opportunity that allows us to service
our semiconductor and electronics customers that operate in China,
and positions us well for future growth with an established company
in a fast-growing market,” says Reliance Chief Executive Officer
David H. Hannah.
EMJ
Breaks Ground in Quebec
Earle
M. Jorgensen Co., Lynwood, Calif., has broken ground for its new
metals processing and distribution facility in Quebec City, Canada.
The
20,000-square-foot facility, scheduled to open in January 2006,
will hold an extensive inventory of bar and tube stock, and will
have cutting equipment on site. The facility will increase service
levels and delivery frequencies to EMJ customers in Quebec City
and surrounding areas currently served by the company’s Montreal
facility.
“We
are looking forward to increasing our level of service to new and
existing customers in Quebec City and the region, and expect to
have daily deliveries to customers in and around the major cities
served by the new operation,” says William Gertin, director
of Canadian operations for EMJ.
The new facility will have a full-time area manager on site and
a staff of five or six.
This
expansion furthers EMJ’s strategy of expanding its operations
to offer added-value capabilities, and increased service and delivery
levels to its customers in North America. Quebec City is the fifth
new facility opening or expansion announced by EMJ in recent months
following those in or near Toronto; Spokane, Wash.; Houston; and
Hartford, Conn.
Ryerson
Tull Shortens Name
Ryerson Tull Inc., Chicago, plans to change its name to Ryerson
Inc., effective Jan. 1. The name change is a response to the company’s
many acquisitions over the years, and in particular its January
2005 purchase of Integris Metals.
“We
will have a name that represents more than 160 years of leadership
in the metal service center industry and all the companies that
are part of our rich heritage, including Joseph T. Ryerson, J.M.
Tull Metals, J&F Steel and, most recently, Integris Metals,”
said Neil S. Novich, Ryerson chairman, president and CEO.
What
will not change, he added, is the company’s commitment to its
“Big Five”—the five factors most important to customers—available
inventory, on-time delivery, competitive prices, quality products
and rapid response.
Ryerson Tull Inc. is North America’s leading distributor and
processor of metals, with first-half 2005 revenues of
$3.1
billion. Concurrent with the name change, it will adopt the ticker
symbol “RYI” for its common stock listed on the New York
Stock Exchange.
Copper and
Brass Sales Opens
Salt Lake City Warehouse
Copper and Brass Sales, a ThyssenKrupp Materials NA Inc. company
based in Southfield, Mich., has opened its newest full-line metals
service center in Salt Lake City, Utah. The new facility includes
a local inside and outside sales force and will serve customers
in Utah, Southern Idaho, Northern Nevada, Montana and Wyoming.
John
Tessin has been named general manager of the location, reporting
to Vern Ginunas, senior vice president of the western region. In
addition to operating as a traditional full-line nonferrous metals
distributor, this location will also provide a small order department
for walk-in customers.
“The
opening of this new facility will allow us to bring significantly
more Copper and Brass Sales product and service offerings to existing,
as well as future customers, in this growing area of the country.
We’re looking forward to the new opportunities that will arise
from this expansion,” says William G. Sabol, president and
COO of Copper and Brass Sales.
People
Novamerican Steel Inc., Lasalle, Quebec, has named Scott B. Jones
president of the corporation. Jones has been a vice president, secretary
and a director since April 1997 and has 17 years of experience in
the steel industry. Bryan Jones, formerly president of the corporation,
will remain as chairman and CEO.
Brian
Hron has joined Chicago Tube and Iron Company’s Milwaukee division
as an outside salesperson, covering the western Wisconsin territory.
Gibraltar Industries Inc., Buffalo, N.Y., has named David A. McCartney
vice president of information services.
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