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Reliance Steel & Aluminum Co. Agrees to Acquire American Alloy Steel, Inc.

Feb 14, 2024•almost 2 years ago

Acquiring Company

Reliance Steel & Aluminum

Acquired Company

American Alloy Steel

ScottsdaleHoustonMiningOil And Gas

Description

Reliance Steel & Aluminum Co. has agreed to acquire all of the outstanding equity interests and related real estate assets of American Alloy Steel, Inc. This strategic acquisition will increase Reliance’s value-added processing capabilities in the areas of burning, cutting, rolling, and beveling, and expand its product offerings. The transaction is subject to regulatory approval and is expected to close within the next 60 days.

Company Information

Company

Reliance Steel & Aluminum

Location

Scottsdale, Arizona, United States

About

Reliance Steel & Aluminum Co. is a leading global diversified metal solutions provider and the largest metals service center company in North America. It was founded in 1939 and operates through a network of more than 315 locations in 40 states and 12 countries outside of the United States. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2022, Reliance’s average order size was $3,670, approximately 50% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours.

M&A Insights

Based on deal data
Integration timeline
70% of M&A integrations take 12-24 months to complete
Tech stack consolidation
83% of merged companies consolidate technology vendors within first year
Post-acquisition investment
Companies increase IT spending by 23% on average after acquisitions
Success factor
M&A deals with strong technology integration plans are 2.5x more likely to succeed