6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Esmark Inc., Chicago Heights, IL, has acquired its seventh steel service center, Homewood, IL-based North American Steel LLC ($30 million in annual revenues), in a cash and stock transaction.
Esmark was launched in 2003 with the acquisition of Electric Coating Technologies LLC, East Chicago, IN, and Sun Steel Co., Chicago Heights, IL, for about $20 million. Its biggest purchase to date has been Piqua, OH-based Miami Valley Steel Services Inc. for $81 million earlier this year. Miami Valley Steel Services had $150 million in revenues in 2004.
Other companies Esmark has purchased include: U.S. Metals & Supply Co., St. Louis ($16 million); Great Western Steel Co., Chicago, and another TriWestern Metals Co. facility in Bridgeview, IL ($15 million); and Century Steel LLC, Chicago, IL ($40 million).
"Since our founding in 2003, our strategy has been solely focused on one goal - deliver new standards of procurement, operations and management efficiency to the steel services sector," said Esmark CEO James P. Bouchard. "We believe our rapid growth is a validation that our strategy is working."
Founded in 1993, Esmark's latest acquisition - North American Steel - serves the automotive, commercial/residential construction market, container and appliance industries with a range of cold-roll, coated, and made-to-order steel products. North American's Youngstown, OH-based Painted Products Division provides painted steel products to the metal construction industry, including building panel components, Metal Building manufacturing, commercial/residential siding industries, HVAC, garage and entry door, and other painted steel applications.
Under terms of the acquisition, Michael Bush and Thomas Jeter, co-owners of North American Steel, will become officers of Esmark and take on new responsibilities. Bush will become president of Century Steel, a Chicago Heights, IL-based, flat-rolled steel specialist acquired by Esmark in January 2005. Jeter will become president of North American Steel and its Painted Products Division.
"With Esmark's purchasing and production power we now have the resources in place to vault Esmark to the forefront of the domestic pre-painted steel supply chain," Jeter said. "We expect revenues to grow to $40 million in 2006 and exceed $100 million by the end of 2008."
According to Esmark, the acquisition pushes the company's annual revenues past $600 million.