Reliance Steel & Aluminum Co. completes acquisition of Tubular Steel, Inc.
6 January 2016
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."