Two More Acquisitions for Reliance > Metal Center News

Two More Acquisitions for Reliance

April 5, 2012

Reliance Steel & Aluminum Co., the nation’s largest service center company, continued to grow its holdings with two more acquisitions.

Most recently, Reliance purchased National Specialty Alloys, a Houston processor and distributor of premium stainless steel and nickel alloy bars and shapes. Founded in 1985, NSA has additional locations in Anaheim, Calif.; Buford, Ga.; and Tulsa, Okla. NSA had net sales of $96.0 million in its 2011 fiscal year.

National Specialty Alloys, LLC will operate as a wholly owned subsidiary of Reliance Steel & Aluminum Co. Current management, led by president Mark Russ, will remain in place.

"We are very excited to add National Specialty Alloys to the Reliance family of companies. NSA has a strong commitment to customer service and has continually grown with expansion into higher-end products, as well as new geographic and customer markets. NSA also expands and complements our exposure to the fast-growing energy market,” says David Hannah, chairman and CEO of Reliance.

NSA's primary end market is energy with particular emphasis on horizontal drilling and completion tools, pumps and valves used in the drilling and production of oil and gas. Other major markets NSA serves include petrochemicals, power generation, water and waste treatment, pulp and paper, marine equipment, military and defense, aerospace and other industrial machinery.

NSA was sold by a consortium of investors led by Post Oak Energy Capital LP and included Chesapeake Investments LLC, Solar Capital Ltd., CarVal Investors LLC and LRC Speciality LLC.

In other action, Reliance acquired the assets of Worthington Steel's Vonore, Tenn., processing facility. The transaction is expected to close later this month.
Upon completion of the acquisition, the Vonore plant will be operated as a Precision Strip facility. Precision Strip is a wholly owned subsidiary of Reliance, operating 11 toll processing facilities throughout the United States and Mexico.

"This acquisition will strengthen our geographic fit for our existing and growing customer base and also complements the footprint of our existing facilities, further expanding our market presence in the southeastern region of the United States," says Joseph P. Wolf, president of Precision Strip Inc.

Worthington acquired the Vonore plant in early 2011 in a deal with MISA Metals.