Reliance Steel & Aluminum Co. Completes Acquisition Of Tubular Steel, Inc.
LOS ANGELES, Jan. 5, 2016 /PRNewswire/ -- Reliance Steel & Aluminum Co. (NYSE: RS) announced today that, effective January 1, 2016, it acquired all of the outstanding capital stock of Tubular Steel, Inc. ("TSI"), a distributor and processor of carbon, alloy and stainless steel pipe, tubing and bar products. Headquartered in St. Louis, Missouri and founded in 1953, TSI stocks over 60,000 tons and ships over two million custom-cut lengths of pipe, tubing and bar products annually from its seven service center locations across the United States. TSI also has a fabrication business located in the St. Louis area that supports its diverse customer base. For the year ended December 31, 2014, TSI's net sales were approximately $200 million. TSI will operate as a wholly-owned subsidiary of Reliance Steel & Aluminum Co. and current management will remain in place. The terms of the transaction were not disclosed.
"Tubular Steel is a strong company with a respected position in the market and we are very excited for TSI to join the Reliance family of companies," commented Gregg Mollins, President and Chief Executive Officer of Reliance. "The addition of Tubular Steel, with specialty, high margin products, fits our growth strategy of investing in higher returning businesses, while expanding our product breadth and end market diversification. Energy is an important end market for Tubular Steel. Although current activity levels are lower than normal in this area, we are confident in the long term strength of the energy market and Tubular Steel's ability to benefit during the recovery."
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is the largest metals service center company in North America. Through a network of more than 300 locations in 39 states and twelve countries outside of the United States, the Company provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance Steel & Aluminum Co.'s press releases and additional information are available on the Company's web site at www.rsac.com.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance's business strategies and its expectations concerning future metals pricing and demand and the Company's results of operations, margins, profitability, impairment charges, liquidity, litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" and "continue," the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates, projections and assumptions as of today's date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, those disclosed in reports Reliance has filed with the Securities and Exchange Commission (the "SEC"). As a result, these statements speak only as of the date that they are made, and Reliance disclaims any and all obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important risks and uncertainties about Reliance's business can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC.
CONTACT:
Brenda Miyamoto
Investor Relations
(213) 576-2428
[email protected]
or Addo Communications
(310) 829-5400
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SOURCE Reliance Steel & Aluminum Co.
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