Reliance Steel & Aluminum Co.
) said that its fully-owned subsidiary, Feralloy Corporation, has
wrapped up the acquisition of all of the outstanding shares of
Alabama-based steel processor, GH Metal Solutions, Inc. The terms
of the deal, which was announced last month, remained undisclosed.
GH Metal Solutions, erstwhile known as Gas House, Inc., processes
and fabricates carbon steel products. Its processing equipment
includes flat-bed lasers, tube lasers, torches, shears, automatic
band saws, and robotic and manual welders. The entity, which has
annual sales of roughly $44 million, will now operate as a
fully-owned unit of Feralloy Corporation with its current
management remaining in place.
Reliance Steel continues its acquisition spree to incite growth.
The company recently purchased Texas-based privately-held Sunbelt
Steel Texas, LLC to expand its foothold in the energy space.
Earlier, in July 2012, the company purchased the assets of Airport
Metals, marking its first foray into the Australian market. It also
bought all the assets of the Worthington Steel Vonore plant from
Worthington Industries Inc.
), in April 2012. The acquisition reinforced its foothold in the
Southeastern regions of the U.S.
These moves are in sync with Reliance Steel's philosophy of growing
inorganically. The strategic acquisitions are expected to drive
growth moving forward through improved product offerings and
expansion into new markets.
Reliance Steel continues to evaluate and execute additional growth
projects and is well placed to leverage the strong momentum across
a number of end markets. However, we are concerned about the
non-residential construction market (the company's largest end
market), which continues to be the weakest link.
Reliance Steel currently retains a short-term Zacks #4 Rank (Sell).
We have a long-term Neutral recommendation on the stock.
RELIANCE STEEL (RS): Free Stock Analysis Report
WORTHINGTON IND (WOR): Free Stock Analysis
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