Venture Steel acquires Olympic Steel business in Detroit for $ 58.4 million

Cleveland-based Olympic Steel Inc. has agreed to sell its Detroit assets to Venture Steel Inc. // Courtesy of Olympic Steel Inc.

Venture Steel Inc., a leading metal processing and distribution company in Ontario with operations in Detroit, has acquired the local assets of Olympic Steel Inc., a leading national metal service center based in Cleveland.

The sale price, which exceeded the book value of the net assets sold, was $ 58.4 million in cash, subject to a future working capital adjustment, which is expected to increase the final sale price.

This move allows Venture Steel to better serve metal consumers in the United States, Canada and Mexico. The acquired facility, located at 3600 N. Military St. (near Michigan and Livernois avenues), along with Venture Steel’s existing footprint, will help the company strengthen its offerings in all rolled metal consumer market segments. dishes in North America.

“The team at our new Detroit plant has built an excellent reputation for customer service and will strengthen our reach, particularly in the automotive sector,” said Tony Kafato, president of Venture Steel. “We are delighted to welcome team members to the Venture Steel family. “

Acquisition strengthens Venture Steel’s ability to provide just-in-time flat-rolled product service to a variety of end-user customers, including automotive, construction, tubular products, consumer products and solar energy .

The company operates from a 250,000 square foot facility in Detroit and serves customers throughout the Midwest. The equipment includes three configured die cut presses, two die cutters including a 0.375 inch by 72 inch Pro-Eco line with Kor-Flex leveling and a Red Bud multiple cut line with Herr Voss levelers.

The equipment is capable of processing metals ranging in thickness from 0.017 inch to 0.375 inch, as well as advanced high strength steels required by automotive OEMs and their supply chain.

“We remain focused on our long-term strategy to further diversify our business, generate consistent profitability and increase shareholder value,” said Richard T. Marabito, CEO of Olympic Steel. “The proceeds from the sale of the Detroit operations will be used to reduce debt, generating greater flexibility to pursue acquisitions and additional investments in organic growth and automation initiatives.

“Our Detroit operation has primarily focused on the processing and distribution of flat rolled metal to domestic automakers and their suppliers. We believe that the redeployment of capital from this activity towards higher value-added opportunities in our three business segments, including our growing automotive business in the Southeastern United States, accelerates our drive to offer ever higher returns to our shareholders. “

Founded in 1954, Olympic Steel is one of the leading metals service centers in the United States focused on direct sales of carbon, coated and stainless flat rolled sheet, coil and sheet steel, aluminum, tinplate and branded metal-intensive products. The Company’s CTI subsidiary is a leading distributor of steel tubes, bars, pipes, valves and fittings, and a manufacturer of value-added parts and components. Olympic Steel operates from 34 facilities in North America.

Venture Steel is a leading processor and supplier of metals for flat rolled products including carbon steel, stainless steel and aluminum. Venture Steel is a full service provider for metal consumers providing just-in-time supply for one-off needs or tailor-made supply and delivery programs for contract metal needs.

The company also provides contract processing services for customer-owned material, including slitting, cut-to-length, slitting, inventory management programs, storage and logistics.

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