A multi-billion dollar publicly traded company has recently purchased a large local business.
Reliance Steel & Aluminum Co., based in Arizona, has purchased all of the outstanding equity stakes in Southern Steel Supply. Southern Steel Supply is based out of Memphis, Tennessee and serves customers from Arkansas, Alabama and Mississippi.
Southern Steel, founded in 1961, is a metals services center offering merchant and structural steel, tubes and pipes, steel plates and ornamental products as well as laser-cut and fabricated parts. Southern Steel will have a net annual sales of $69.2 million by 2022. Michael Wexler is the CFO of Southern Steel. He says that the company has 69 employees who will all be retained after the acquisition.
The terms of the transaction was not disclosed.
In a press statement, Reliance CEO and President Karla Lewis said that Southern Steel's reputation as a company with superior customer service and on-time deliveries aligns with Reliance’s business model.
Southern Steel will now operate as a subordinate of Siskin Steel & Supply Co. which is a Reliance subsidiary. Lewis believes that the acquisition will broaden Memphis's product range, and also provide its customers with a variety of capabilities. Southern Steel will also benefit from Reliance’s long-standing mill relationships and significant capital expenditures to promote growth and efficiency in the back office.
Reliance is the largest metals service centre company in North America. It has 315 locations across 40 states in the U.S. and 12 other countries. According to the company's latest annual report it earned $17.025 in FY 2022 and had approximately 14,500 employees on December 31.