CLEVELAND – (BUSINESS WIRE) – Olympic Steel Inc. (NASDAQ: ZEUS), the nation’s leading metalworking service center, announced today that it has acquired an asset of Shaw Stainless & Alloy, Inc. (“Shaw”). All cash purchases add value instantly. The terms were not disclosed.
The acquisition includes Shaw’s stainless steel marketing and manufacturing business and the barrier construction and protection business. Shaw will be integrated into Olympic Steel’s Specialty Metals division led by Andy Markowitz, President of Specialty Metals. The Shaw team will report to Zachary J. Segal, Vice President of Strategic Development at Olympic Steel.
“Continuing to acquire well-managed, high-margin businesses is a key element of our strategy,” said CEO Richard T. Marabito. “We are pleased to be able to quickly reallocate some of the proceeds from the recently announced sale of assets and operations in Detroit. We expect Shaw’s higher returns to replace the previous Detroit revenue stream for a fraction of the investment. Shaw is committed to safety, excellence focused. Service customers and the company’s strong values align well with the culture of Olympic Steel We welcome the Shaw team and their wealth of experience at Olympic Steel.”
“The show is expanding our footprint in specialty metals and the machining products and services we offer to our customers,” said Andrew Greiff, president and chief operating officer. “This acquisition also continues our strategic growth in metal-intensive end-use products, building on our success with Wright® dump bins and EZ-Dumper® truck inserts. Unlike our previous acquisitions, we expect to achieve commercial synergies that will drive our efforts to continuously increase profits and profits for shareholders”.
Shaw, headquartered in Powder Springs, Georgia, is a full line distributor of stainless steel sheets, tubes, tubes, bars and angles. The company also manufactures and sells stainless steel bollards and water treatment systems. Founded in 1979, Shaw operates approximately 120,000 square feet of warehouse and manufacturing space in Marietta, Hiram, Powder Springs and Albany, Georgia. It will continue to operate under the Olympic Steel name Shaw Stainless & Alloy under current management including President Brian Shaw.
Shaw offers a variety of value-added manufacturing processes, including: custom machining; electropolishing and passivation; laser, gas, plasma, water jet, angle, saw and cutting with a mechanical torch; chamfering of steel; precision welding; metal forming; threading on pipes; rolling, painting, galvanizing, stainless steel polishing, flange connections, coating, packaging and lining, pickling, oiling, degreasing, as well as a series of product testing and quality control.
Forward-looking statements in this press release are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified with words such as “may”, “will”, “expects”, “should”, “intends”, “expects”, “believes”, “estimates”, “projects”, “plans,” potential ” and “continue”, as well as negations of these terms or similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to, our ability to successfully integrate Shaw into our business and the risks inherent in acquiring Shaw to achieve expected results, including whether the acquisition will accumulate and be within the expected time frame. . We undertake no obligation to publish any revisions or otherwise update any forward-looking statement, whether as a result of new information or to reflect events, circumstances or any other unforeseen events after the date of such statement. For an additional list and description of risks, uncertainties and other factors, please see our Annual Report on Form 10-K for the year ended December 31, 2020 and our reports on Forms 10-Q and 8-K.
Olympic Steel, founded in 1954, is the leading steel service center in the United States, specializing in direct sales of carbon steel flat products, coated and stainless steel sheets, coils and plates, aluminium, tinplate and metal-intensive branded products. A subsidiary of CTI is a leading distributor of steel tubes, bars, tubes, valves and fittings, and a manufacturer of value-added components. Olympic Steel, headquartered in Cleveland, Ohio, has 41 plants in North America, including seven plants added through the acquisition of Shaw Stainless & Alloy.
Post time: Jan-30-2023