Reliance Steel & Aluminum (RS) to Buy American Alloy Steel

Group 1 - Reliance Steel & Aluminum Co. has signed a definitive agreement to acquire all outstanding equity interests and related real estate assets of American Alloy Steel, Inc. [1] - American Alloy operates five service centers and a plate fabrication business in the U.S., with annual net sales of approximately $310 million for the 12 months ended December 31, 2023 [1][2] - The acquisition will enhance Reliance Steel's value-added processing capabilities, including burning, cutting, rolling, and bevelling [1][2] Group 2 - The transaction is expected to be completed within the next 60 days, pending regulatory approval and customary closing conditions [2] - The current management team of American Alloy is likely to remain in place after the transaction [2] - Reliance Steel's shares have increased by 21.2% over the past year, contrasting with a 5.6% decline in its industry [4] Group 3 - Reliance Steel currently holds a Zacks Rank 2 (Buy) [5] - Other better-ranked stocks in the basic materials sector include United States Steel Corporation, Carpenter Technology Corporation, and Alpha Metallurgical Resources Inc. [5][6] - United States Steel has a Zacks Rank 1 (Strong Buy) and has seen a 56.1% increase in shares over the past year [5]