Metals USA Acquires The Richardson Trident Company
03/14/2011 - Metals USA Holdings has closed its acquisition of The Richardson Trident Company, including its eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts.
Metals USA Holdings Corp. has closed its acquisition of The Richardson Trident Company.
Founded in 1962, Trident provides value added non-ferrous products, supplying a host of services such as precision sawing, boring, honing, slitting, sheeting, shearing and tuning.
The majority of Trident's revenues are generated by supplying products to a blue chip customer base in the fast-growing and highly profitable Oil & Gas field services market. Trident also has significant exposure to other attractive sectors such as aerospace, defense and transportation. This acquisition significantly enhances Metals USA's position and market-share within these four sectors.
Acquisition of Trident represents Metals USA's third acquisition since its IPO last April. With sales of approximately $148 million on 23,000 shipped tons for the 12 months ending December 31, 2010, Trident is also the largest company acquired by Metals USA so far.
The addition of Trident's eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, significantly increases Metals USA’s geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States.
"We believe that Trident embodies all the elements we look for in our ideal acquisition target: a high value added processing and service oriented business, superior profitability through the cycle, a first rate reputation in the market, a defensible market position, and a high quality employee base," said Lourenco Goncalves, Chairman, President, and CEO of Metals USA.
"As we capture synergies by taking advantage of our combined purchasing activities and expand our scale with key suppliers and blue chip customers, we believe we can further enhance Trident's already attractive profitability,” continued Goncalves. “Trident's high EBITDA margin should average up Metals USA's overall EBITDA margin."
"We believe that we have acquired Trident at an attractive valuation on a cycle average basis, and expect Trident's contribution to be immediately accretive to Metals USA's results," concluded Goncalves.
Mike Cooney, Metals USA's President of Non-Ferrous, will relocate to Dallas where he will assume direct responsibility for Trident's operations while continuing to lead all of Metals USA's non-ferrous business. Metals USA will operate the newly acquired business under its current name, The Richardson Trident Company.
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.
