Cleveland-based Olympic Steel Inc. (Nasdaq: ZEUS), announced Friday that it has acquired the assets of Shaw Stainless & Alloy. Olympic Steel said the all-cash purchase was immediately accretive. Financial terms of the deal weren’t disclosed.
Shaw, based in Powder Springs, Georgia, is a full-line distributor of stainless steel sheet, pipe, tube, bar and angles. Shaw also manufactures and distributes stainless steel bollards and water treatment systems. Founded in 1979, Shaw operates approximately 120,000-square-feet of warehouse and fabrication space in Marietta, Hiram, Powder Springs and Albany, Georgia. It will continue to operate as Shaw Stainless & Alloy, an Olympic Steel company, led by its existing management team, including President Bryan Shaw.
The acquisition includes Shaw’s stainless-steel distribution and fabrication businesses as well as its architectural and barrier defense businesses. Shaw will be incorporated into Olympic Steel’s specialty metals segment, led by Andy Markowitz, the president of specialty metals. The Shaw team will report to Zachary J. Siegal, Olympic Steel’s vice president for strategic development.
“Continuing to acquire well-run, high-return businesses is a key element of our strategy,” said Olympic Steel CEO Richard T. Marabito. “We are excited to quickly redeploy a portion of the proceeds from our recently announced sale of Detroit assets and operations. We expect higher-returning results from Shaw will replace the former Detroit earnings stream at a fraction of the investment. Shaw’s dedication to safety, focus on exceptional customer service and strong company values align well with Olympic Steel’s culture. We welcome the Shaw team and their wealth of expertise to Olympic Steel.”
Last month, Olympic Steel announced the sale of substantially all of the company’s Detroit assets and operations to Venture Steel Inc. for $58.4 million