Reliance Steel & Aluminum Sells Encore Coils Business
01/08/2008 - Reliance Steel & Aluminum sells the assets and business of the Encore Coils division of its Encore Group Limited subsidiary to Samuel Son & Co., Ltd., headquartered in Mississauga, Ont., Canada.
Reliance Steel & Aluminum Co. has sold the assets and business of the Encore Coils division of its Encore Group Limited subsidiary to Samuel Son & Co., Ltd., headquartered in Mississauga, Ont., Canada.
Reliance acquired the Encore Group of metals service center companies—comprising Encore Metals, Encore Metals (USA), Inc., Encore Coils, and Team Tube in Canada—effective February 1, 2007. The Encore Coils division, which Samuel Son & Co. is acquiring, processes and distributes carbon steel flat-rolled products through its five facilities located in Western Canada. For the year ended December 31, 2007, the net sales of Encore Coils were approximately $50 million.
Reliance is retaining Encore Group’s Encore Metals and Team Tube divisions, which specialize in the processing and distribution of alloy and carbon bar and tube, as well as stainless steel sheet, plate and bar products through 12 locations.
“The most important part of the Encore Group to us is its specialty metals business, which we will retain,” said Reliance’s Chairman and CEO, David H. Hannah. “The Encore Coils business did not fit well for us because we do not have any similar facilities nearby that could help support this relatively small business. The sale of the Encore Coils business to Samuel allows us to exit this market without disrupting the Encore Coils customer base.”
Terms of the sale were not disclosed.
Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum is one of the largest metals service center companies in the United States. Through a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the United Kingdom, the company provides value-added metals processing services and distributes a full line of over 100,000 metal products. Products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 125,000 customers in various industries.
Reliance was named to the 2007 “Fortune 500” List, the Fortune 2007 “100 Fastest Growing Companies” List, the Fortune 2007 List of “America’s Most Admired Companies” and the 2008 Forbes “Platinum 400 List of America’s Best Big Companies.”
