Esmark Inc. announced its acquisition of U.S. Metals and Supply Co. for $16 million.

St. Louis-based U.S. Metals and Supply, a leading value-added, cold rolled and coated steel service center, operates a seven-acre, 180,000 square foot facility that includes two steel slitters and two cut-to-length steel lines. The operation has annual revenues of more than $40 million.

In making the announcement, Esmark CEO James P. Bouchard said the acquisition provides the company with a number of strategic advantages. "U.S. Metals has a solid customer base, diverse product mix and broad geographic coverage that gives us some significant synergies. U.S. Metals is also one of the best-managed and consistently profitable service centers in the U.S. and will make an excellent addition to the Esmark steel service centers family," Bouchard explained.

Under terms of the acquisition, U.S. Metals and Supply President Richard Killabrew will continue in his role as President, and will continue to manage day-to-day operations. Killabrew noted that U.S. Metals' central location will ensure just-in-time shipments to some of Esmark's large OEM customers.

The U.S. Metals acquisition represents Esmark's third major steel company acquisition in the past year. In January Esmark acquired all the assets of Chicago-based TriWestern Metals Co. from Triumph Group, Inc. (NYSE: TGI) for $15 million. Now called Great Western Steel Co., the company develops, produces and distributes flat rolled and electro-galvanized steel products.

In February of 2004 Esmark acquired Chicago Heights, Ill.-based Sun Steel Co. and Electro Coating Technologies of East Chicago, Ind. Esmark has since merged Triumph Group's electrogalvanizing assets in Bridgeview, Ill., with its Electro Coating Technologies facility in East Chicago, Ind., making Esmark the largest non-automotive electrogalvanizing operation in North America.

Bouchard reiterated that as the U.S. steel services marketplace continues its consolidation phase that has already played out in Europe and Asia, Esmark plans to actively participate and provide leadership to the domestic consolidation trend as the company executes its growth strategy.

Headquartered in Chicago, Esmark, Inc. is a steel services company founded by James P. Bouchard and Craig T. Bouchard. The company’s mission is to establish benchmark standards for strategic consolidation, operating efficiency, and management excellence in the global steel service sector.