Nov. 11, 2015
Hitachi Acquires Diehl Steel
Japan's Hitachi Metals Ltd. has acquired Diehl Steel Co., Cincinnati. Diehl Steel is one of the leading tool steel distributors in the United States.
This acquisition will secure a tool steel cutting and processing location and sales network in North America, enabling Hitachi Metals to build an important base for expanding sales, the company claims. Hitachi executives say the deal will increase the value of Yasugi Specialty Steel and will offer the opportunity for growth in the global market through the materials technology and development capacity at its manufacturing location in Japan. It is part of the company’s effort to build a sales structure throughout the world.
Diehl Tool Steel's existing management, including owner Michael Sheehan, will remain in charge of the company. He will become president and chief operating officer.
Before the acquisition, Hitachi’s primary access to the domestic market was through sales to Japanese transplants in the auto industry and their Tier 1 suppliers. The deal will expand the company's exposure to others in the domestic automotive supply chain, plus other tool steel end markets, says Tom Bell, a specialty steel group product head for Hitachi.