CLEVELAND, Dec. 16, 2015 /PRNewswire/ -- Flack Steel Ltd. announced today that it has completed a transaction with Consolidated Systems, Inc. (CSi), for the purchase of selected assets of its Consolidated Metal Products (CMP) business. The acquisition expands Flack Steel's product offering and market penetration opportunities for bare and painted carbon, galvanized, stainless steel, and aluminum. It will also raise Flack Steel's consolidated annual revenue to an excess of $300 million. Terms of the deal were not disclosed.
The deal includes the working capital and associated nonphysical assets, including the trade name, of Consolidated Metal Products. The deal does not include the coil coating line and processing equipment in Columbia, SC.
CMP will continue to supply painted and processed metal products for the construction, appliance and transportation verticals. Per the agreement, more than 20 CMP purchasing, sales, quality and marketing professionals will bring their expertise to Flack Steel, a consultative metal service center that helps its customers secure long-term pricing to minimize market volatility. They will continue to operate out of the Columbia, South Carolina office.
"Adding CMP allows us to expand our geographic & product reach while capitalizing on synergies between our network of processing partners," said Jeremy Flack, CEO of Flack Steel Ltd. "This gives us the ability to offer our current and new customers a wider range of products and hedging solutions on the Flack platform."
This is the second significant expansion for Flack Steel in as many years. In 2013, Flack Steel Ltd. merged with GlobeNet Metals LLC to form an innovative steel sales model.
"Adding CMP simply amplifies our ability to bring more customers agile supply chain solutions while hedging their market price exposure," said Ben Bucci, president, GlobeNet Metals a Flack Steel Company.
"We are excited to be joining the Flack team. Adding Flack's expertise in risk management will provide additional benefits for our existing customer base. This move also allows Flack Steel to leverage the improving construction sector, while also providing inroads into the appliance and transportation markets." said Brad Pemberton, President of CMP Metals.
The acquisition expands Flack Steel's geographic presence with more than 50 industry professionals across offices in Cleveland, Ohio; Chicago, IL; Scottsdale, AZ; and Columbia, SC.
ABOUT FLACK STEEL LTD.
Founded in 2010, Flack Steel Ltd. is headquartered in Cleveland, Ohio, with offices in Chicago, Illinois and Scottsdale, Arizona through its GlobeNet affiliate. The company's steel service center includes global material sourcing along with a processing network that serves customers within their geography. Flack Steel is the leading company in the industry to provide purchasing counsel designed to help customers' secure long-term pricing to minimize business risk. The company serves OEMs across a range of industries with hot-rolled, cold-rolled, galvanized and painted sheet steel, along with proprietary product solutions. Learn more at http://www.flacksteel.com.
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SOURCE Flack Steel Ltd.