Service Center News

Reliance Acquires American Alloy Steel

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Scottsdale, Ariz.-based Reliance Steel & Aluminum Co., North America’s largest service center company, will acquire all of the outstanding equity interests and related real estate assets of American Alloy Steel Inc.  American Alloy is a leading distributor of specialty carbon and alloy steel plate and round bar, including pressure vessel quality material.

Headquartered in Houston and founded in 1971, American Alloy operates five service centers in the U.S. and a plate fabrication business. In addition, American Alloy has a joint venture in Canada.

American Alloy sells to customers located throughout the United States, Canada, and Mexico, as well as certain international markets, supporting military, infrastructure, power generation, utility, refining, petrochemical, mining, shipbuilding and marine applications. The addition of American Alloy will increase Reliance’s value-added processing capabilities in the areas of burning, cutting, rolling, and beveling.

For the twelve months ended Dec. 31, annual net sales for American Alloy were approximately $310 million.

“We are very excited to welcome American Alloy to the Reliance family,” said Karla Lewis, president and CEO of Reliance. “They have been a well-known leader in the specialty carbon steel plate market for decades with strong relationships with both customers and suppliers, along with committed, long-tenured employees, and a solid reputation for customer service and product expertise.

The current American Alloy team, including management, is expected to remain in place post-closing.

"We at American Alloy are excited for our new future with Reliance Steel," said Art Moore, American Alloy's founder and chairman. "Reliance's reputation through its dozens of acquisitions of service center businesses gave us comfort that our employees would continue to have a supportive home and that American Alloy can continue providing world-class service to our loyal customers around the world. Reliance's resources and expertise will help American Alloy expand and increase our value proposition to our customers and provide new challenges and opportunities for our outstanding and loyal employees, who have provided the foundation for our success over the past 53 years."

The terms of the transaction were not disclosed. Montrose Advisors LLC served as the financial advisor to American Alloy in the transaction.