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

Core Viewpoint - Reliance Steel & Aluminum Co. has announced a definitive agreement to acquire American Alloy Steel, enhancing its capabilities in specialty carbon and alloy steel distribution and processing [1][2]. Company Overview - Reliance Steel & Aluminum Co. is a leading global diversified metal solutions provider and the largest metals service center company in North America, with over 315 locations in 40 states and 12 countries [3]. - The company distributes more than 100,000 metal products to over 125,000 customers across various industries, focusing on small orders with quick turnaround and value-added processing services [3]. Acquisition Details - The acquisition of American Alloy, which reported annual net sales of approximately $310 million for the year ending December 31, 2023, is expected to close within 60 days, pending regulatory approval [1][2]. - American Alloy operates five service centers in the U.S. and has a joint venture in Canada, serving customers in military, infrastructure, power generation, and other sectors [1][2]. - The addition of American Alloy will enhance Reliance's value-added processing capabilities, including burning, cutting, rolling, and beveling [1][2]. Strategic Implications - The acquisition is anticipated to strengthen Reliance's product portfolio by adding specialty carbon steel plate and new fabrication capabilities [2]. - Reliance aims to leverage collaboration between American Alloy and its existing companies to expand product and service offerings [2].