July 9, 2014
Varsteel Makes Two Acquisitions
Canadian service center company Varsteel Ltd. has made two acquisitions. The steel pipe and tube distributor has acquired Evraz North America’s cut-to-length operation in Regina, Saskatchewan, and Peace Steel Ltd., a Grand Prairie, Alberta-based service center and processor.
The Evraz North America facility is equipped to cut steel coils to length per customer specification in thicknesses ranging from 0.102- to half-inch, in widths from 48 to 96 inches. Evraz will continue to employ the six people who run the operation, contracting the labor to Varsteel.
"This is a landmark transaction for Varsteel that allows us to significantly augment our existing processing capabilities and deliver greater product range and volumes to our customers," says Gerald Varzari, CEO of Varsteel.
"This transaction allows the Evraz Flat Products group to focus on our core competencies in steel plate, coil and hollow structural steel manufacturing while ensuring that our existing CTL customers continue to receive great service from an established and highly experienced company," adds Don Hunter, Evraz vice president of flat product sales.
One day earlier, Varsteel acquired Peace Steel, which offers plasma and saw cutting, shearing and forming at its Grand Prairie facility. "We are pleased to expand Varsteel's northern Alberta footprint with a full product range of steel and metal processing capabilities," Varzari says.
Varsteel, headquartered in Lethbridge, Alberta, has more than 30 locations in Western Canada.