Reliance Steel to acquire American Alloy Steel, terms not disclosed

Reliance Steel announced that it has entered into a definitive agreement to acquire all of the outstanding equity interests and related real estate assets of American Alloy Steel, a distributor of specialty carbon and alloy steel plate and round bar, including pressure vessel quality material. Headquartered in Houston, Texas and founded in 1971, American Alloy operates five service centers in the U.S. and a plate fabrication business. In addition, American Alloy has a joint venture in Canada. American Alloy sells to customers located throughout the United States, Canada, and Mexico, as well as certain international markets, supporting military, infrastructure, power generation, utility, refining, petrochemical, mining, shipbuilding, and marine applications. The addition of American Alloy will increase Reliance’s value-added processing capabilities in the areas of burning, cutting, rolling, and beveling. For the twelve months ended December 31, 2023, annual net sales for American Alloy were approximately $310M. The transaction is expected to close within the next 60 days, subject to regulatory approval and customary closing conditions. The current American Alloy team, including management, is expected to remain in place post-closing. The terms of the transaction were not disclosed.