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Reliance Steel & Aluminum Co. Acquires Southern Steel Supply, Llc

May 01, 2023•about 2 years ago

Acquiring Company

Reliance Steel & Aluminum

Acquired Company

Reliance Steel & Aluminum

ScottsdaleScottsdaleMiningMining

Description

Reliance Steel & Aluminum Co. (NYSE:RS) announced that it has acquired all the outstanding equity interests of Southern Steel Supply, LLC (“Southern Steel”), a metals service center that offers merchant and structural steel, pipe and tube, steel plate, ornamental products and laser cut and fabricated parts. Founded in 1961 and located in Memphis, Tennessee, Southern Steel supplies customers throughout Tennessee, Mississippi, Arkansas, Alabama, and Missouri. Southern Steel will operate as a subsidiary of Siskin Steel & Supply Company, Inc. (“Siskin”), a wholly owned subsidiary of Reliance. Siskin also acquired the related real estate assets of Southern Steel. The current management team will remain in place. For the twelve months ended December 31, 2022, annual net sales for Southern Steel were $62.9 million. The terms of the transaction were not disclosed.

Company Information

Company

Reliance Steel & Aluminum

Location

Scottsdale, Arizona, United States

About

Reliance Steel & Aluminum Co. is a leading global diversified metal solutions provider and the largest metals service center company in North America. It was founded in 1939 and operates through a network of more than 315 locations in 40 states and 12 countries outside of the United States. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2022, Reliance’s average order size was $3,670, approximately 50% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours.

M&A Insights

Based on deal data
Integration timeline
70% of M&A integrations take 12-24 months to complete
Tech stack consolidation
83% of merged companies consolidate technology vendors within first year
Post-acquisition investment
Companies increase IT spending by 23% on average after acquisitions
Success factor
M&A deals with strong technology integration plans are 2.5x more likely to succeed