Reliance Acquires 100 Percent of Mexican Toll Processor
By Metal Center News Staff
on Oct 29, 2018
Reliance Steel & Aluminum Co., Los Angeles, has acquired the remaining 40 percent ownership in Acero Prime, S. de R.L. de C.V. Acero Prime, a toll processor based in Mexico, has been a joint venture with U.S. Steel.
Reliance also concurrently purchased U.S. Steel’s interest in Acero Prime Servicios, S. de R.L. de C.V., an affiliate of Acero Prime. With these transactions, Reliance has assumed 100 percent ownership of Acero Prime’s four toll processing locations in Mexico, including the recently constructed Monterrey facility which opened in July 2016. The terms of the transaction were not disclosed.
“Acquiring the remaining ownership interest in Acero Prime supports our capital allocation strategy of investing in high-return opportunities that enhance our long-term earnings potential,” said Gregg Mollins, president and CEO of Reliance. “Our toll processing businesses are strong performers that provide high levels of value-added processing, and we believe complete ownership will allow us to more fully support volume growth in important end markets such as automotive. Acero Prime is a highly respected name in the industry and community and we look forward to expanding our presence in toll processing, where demand continues to be strong.”
Founded in 1999, Acero Prime performs metal processing services such as slitting, multi-blanking and oxy-fuel cutting, as well as storage and supply-chain management for a variety of different industries including automotive, home appliance, lighting, HVAC, machinery and heavy equipment.