Olympic Steel Acquires Central Tube & Bar

3 October 2023

Olympic Steel Inc., a prominent national metals service center, has announced the acquisition of Central Tube & Bar (CTB). This all-cash transaction is anticipated to have an immediate positive impact on the company, although specific financial terms were not disclosed.

Established in 1996, CTB serves large original equipment manufacturers (OEMs) and fabricators in the Mid-South region, operating from three facilities in Conway, Arkansas, and Tulsa, Oklahoma, encompassing a total of 162,000 square feet of warehouse and production space. CTB specializes in providing a wide range of value-added fabrication services, including tube laser cutting, tube bending, robotic welding, flat laser burning, and brake press forming. The company reported trailing 12-month revenue of approximately $40 million for the period ending August 31, 2023.

CTB's customer base spans various industries, including transportation, agriculture, commercial furniture, and data center construction, offering fabricated tube and bar products in various shapes, such as round, square, rectangular, and special shapes. The company will continue its operations under the name Central Tube & Bar, an Olympic Steel Company, with Dustin Ward serving as President, alongside his experienced management team.

Richard T. Marabito, Chief Executive Officer of Olympic Steel, commented on the acquisition, stating, "The acquisition of Central Tube & Bar represents our latest strategic move to invest in consistently high-performing businesses. We are delighted to welcome Dustin Ward and his capable team to the Olympic Steel family." He further emphasized the alignment of CTB's financial performance with Olympic Steel's strategic objectives.

Andrew Greiff, President and Chief Operating Officer, noted the broader implications of this acquisition, saying, "In addition to expanding our geographic reach into the high-growth markets in the Mid-South, Central Tube & Bar extends our value-added contract manufacturing capabilities." He also highlighted the growth potential and synergies that would arise from combining CTB with the existing Chicago Tube & Iron business within Olympic Steel's tubular and pipe products segment.

Central Tube & Bar will be integrated into Olympic Steel's tubular and pipe products segment, which is led by William Zielinski, President of Chicago Tube & Iron.

Following the acquisition of CTB, Olympic Steel's total debt under its revolving credit facility stands at approximately $234 million, with available capital of approximately $359 million. This financial position leaves Olympic Steel well-positioned to pursue its diversification strategy through additional acquisitions, expanding capacity, and enhancing efficiency through automation, ultimately delivering value to its shareholders.


Source: businesswire.com