The largest metals service center in North America, Reliance Steel & Aluminum Co., announced that effective Oct. 1 it had acquired all outstanding limited liability company interests of the privately held Sunbelt Steel Texas, LLC. Sunbelt is a value-added distributor of special alloy steel bar and heavy-wall tubing products to the oil and gas industry.
Terms of the deal were not disclosed, according to articles by Reuters and Business Wire.
"We are excited to add Sunbelt Steel Texas, LLC to the Reliance Family of Companies. Sunbelt increases our growing exposure to the energy market in high end, niche products serving customers across multiple oil and gas well drilling types, including vertical, horizontal, directional, and deep water drilling applications. ...We look forward to continuing Sunbelt's growing presence in their specialty markets," said David H. Hannah, Chairman and CEO of Reliance in a press release.
The Los Angeles-based Reliance distributes over 100,000 metal products and provides metal processing services to more than 125,000 customers in a range of industries, through its mammoth network of over 220 locations spanning 38 states and ten countries, according to its website.
Twenty-seven percent of its sales in the US last year were in the Midwest followed by 17 percent in the Southeast. Carbon steel accounted for 53 percent of the company's sales by commodity last year, followed by aluminum and stainless steel, each accounting for 15 percent.
Reliance has successfully completed 45 acquisitions since it went public in 1994, its website states.
The Houston-headquartered Sunbelt will operate as a wholly-owned subsidiary of Reliance Steel & Aluminum Co., maintaining its current management, according to the Reliance press release. The release also stated that net sales for Sunbelt for the year ending December 31, 2011 were $48 million. Sunbelt has an additional location in Lafayette, Louisiana.
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