Samuel Manu-Tech Forms Alliance with V&W Steel
04/09/2008 - Samuel Steel Pickling will process Viking & Worthington Steel Enterprises’ Northeast Ohio pickling requirements as part of a new strategic alliance between the two companies.
Samuel Manu-Tech Inc.'s majority owned steel pickling operations in Ohio, Samuel Steel Pickling Co. will process all Northeast Ohio pickling requirements for Viking & Worthington Steel Enterprises, LLC (V&W) as part of a newly agreed-upon strategic alliance between the two companies.
As part of the new alliance, V&M will shut down their steel pickling operations in Valley City, Ohio, but will also obtain a minority ownership position in Samuel Pickling.
Samuel Pickling generated annual sales of approximately U.S. $14 million in its most recently completed fiscal year from its processing operations in Cleveland and Twinsburg, Ohio. Founded in 1988, the company currently operates as a partnership between Samuel Manu-Tech and Gibraltar Industries.
The new ownership structure will include Gibraltar Industries and V&W, with Samuel Manu-Tech remaining the majority owner and operating manager of the new venture. Management expects this transaction to be accretive to earnings in its first full year.
"We are excited to welcome V&W into Samuel Pickling", commented Samuel Manu-Tech's Chairman and CEO, Mark Samuel, "We consider this to be an excellent opportunity for Samuel Pickling to better utilize their capacity while maintaining their commitment of service, quality and delivery to the marketplace".
The companies currently anticipate that the transaction will close in June 2008.
Samuel Manu-Tech is a leading North American industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada, the United States, and Mexico.
