Reliance Steel & Aluminum Co. has completed its previously disclosed acquisition of Chapel Steel Corp., headquartered in Spring House (Philadelphia), Pa.

Reliance paid $94.2 million in cash plus the assumption of approximately $16.8 million of debt for all of Chapel’s outstanding common stock. Current Chapel Steel management and employees will remain in place, with James R. Sutow serving as President and Chief Operating Officer. Reliance expects the acquisition to be immediately accretive to earnings.

Chapel processes and distributes carbon and alloy steel plate products from five facilities in Pottstown (Philadelphia), Pa.; Bourbonnais (Chicago), Ill.; Houston, Texas; Birmingham, Ala.; and Portland, Ore. Chapel also warehouses and distributes its products in Cincinnati, Ohio, and Hamilton, Ont., Canada. Chapel's net sales for the fiscal year ended December 31, 2004 were approximately $273 million. Chapel services the construction, defense, heavy equipment, shipbuilding, energy and other industries.

Reliance's CEO, David H. Hannah, said, "The Chapel acquisition will broaden and strengthen our product offerings, add new customers and fit quite well with our existing domestic operations." James R. Sutow, Chapel's President and Chief Operating Officer, said, "The entire Chapel team is excited about our future as a part of Reliance." PNC Capital Markets, Inc. acted as financial advisor to Chapel Steel Corp. and its shareholders in this transaction.

Headquartered in Spring House, Pa., Chapel Steel Corp. was a privately held metals service center company. Founded in 1972, Chapel will now be a wholly owned subsidiary of Reliance.

Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. Through a network of more than 100 locations in 31 states and Belgium, France and South Korea, the Company provides value-added metals processing services and distributes a full line of over 90,000 metal products. These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 95,000 customers in various industries.