SPS Companies Inc. and State Steel will combine their service center businesses under the SPS Companies family of companies. The deal involves North America's 15th and 38th largest service center companies in
MCN's most recent Top 50.
State will continue as an independent business unit and David Bernstein, who presently leads the State businesses, will continue his role as president of State with the current senior management retaining their positions and responsibilities. The scrap business Sioux City Compressed Steel and Kooima ownership held by the Bernstein family will not be part of the transaction. Bernstein will also become an SPS shareholder in the transaction and join the board of directors.
SPS and State jointly acquired the job shop operations of Kooima Company back in 2019. “Through the collaboration with SPS on Kooima, it became apparent that SPS is a highly logical fit as both companies are private and share very similar cultures, including greatly valuing our team members and customers,” Bernstein said.
“SPS has a corporate structure that will allow the State business model to continue to grow and thrive well into the future, leveraging synergies with a top tier organization, with a primary mission of continuing to serve our customers’ needs for high quality materials and service," he added. “Our customers will see a seamless transition with their same sales contacts and the same commitment to quality products and services they have grown to trust with State.”
“We are grateful that the Bernstein family considered SPS a worthy partner to continue the legacy of the business they have dedicated so much time building," said Matt Crocker, CEO of SPS.
SPS, headquartered in Manhattan, Kan., has steel distribution and fabrication operations located in 11 U.S. states, as well as in Monterrey, Mexico.
State Steel, headquartered in Sioux City, Iowa, operates steel distribution and fabrication operations in six cities in the upper Midwest.
SPS was advised on the transaction by Montrose Advisors, LLC and Weary Davis, LC, while State was advised by Stout Risius Ross, LLC and Katten Muchin Rosenman LLP.