LOS ANGELES, Oct. 24, 2018 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE: RS) announced today that it has acquired the remaining 40% ownership interest in Acero Prime, S. de R.L. de C.V (“Acero Prime”), a toll processor in Mexico, from its joint venture partner, an affiliate of United States Steel Corporation (“U.S. Steel”). Reliance also concurrently purchased U.S. Steel’s interest in Acero Prime Servicios, S. de R.L. de C.V., an affiliate of Acero Prime. With these transactions, Reliance has assumed 100% ownership of Acero Prime’s four toll processing locations in Mexico, including the recently constructed Monterrey facility which opened in July 2016. The terms of the transaction were not disclosed.
“Acquiring the remaining ownership interest in Acero Prime supports our capital allocation strategy of investing in high return opportunities that enhance our long-term earnings potential,” commented Gregg Mollins, President and Chief Executive Officer of Reliance. “Our toll processing businesses are strong performers that provide high levels of value-added processing, and we believe complete ownership will allow us to more fully support volume growth in important end markets such as automotive. Acero Prime is a highly respected name in the industry and community and we look forward to expanding our presence in toll processing, where demand continues to be strong.”
Founded in 1999, Acero Prime performs metal processing services such as slitting, multi-blanking and oxy-fuel cutting, as well as storage and supply-chain management for a variety of different industries including automotive, home appliance, lighting, HVAC, machinery and heavy equipment. Reliance acquired its initial 40% ownership interest in Acero Prime in connection with the August 2008 acquisition of the PNA Group which included 23 service centers and seven joint ventures. Reliance acquired a controlling interest in Acero Prime in October 2014 and increased its ownership to 60% in November 2014. For the year ended December 31, 2017, Acero Prime’s net sales were $37.6 million.
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is the largest metals service center company in North America. Through a network of more than 300 locations in 40 states and thirteen countries outside of the United States, Reliance provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and increasing levels of value-added processing. In 2017, Reliance’s average order size was $1,740, approximately 48% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours. Reliance Steel and Aluminum Co.’s press releases and additional information are available on the Company’s website at www.rsac.com.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s industry and its end markets, its business strategies and its expectations concerning future demand and metals pricing and the Company’s results of operations, margins, profitability, impairment charges, taxes, liquidity, litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" and "continue," the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, those disclosed in reports Reliance has filed with the Securities and Exchange Commission (the "SEC"). As a result, these statements speak only as of the date that they are made, and Reliance disclaims any and all obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important risks and uncertainties about Reliance’s business can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC.
CONTACT:
Brenda Miyamoto
Investor Relations
(213) 576-2428
investor@rsac.com
or Addo Investor Relations
(310) 829-5400