Olympic Steel Acquires Shaw Stainless & Alloy
Cleveland – October 1, 2021 – Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced that it has acquired the assets of Shaw Stainless & Alloy, the Company’s fifth acquisition in the past four years. The all-cash purchase is immediately accretive. Terms were not disclosed.
The acquisition includes Shaw’s stainless steel distribution business, as well as the architectural and fabrication businesses. These businesses will be incorporated into Olympic Steel's specialty metals business segment, led by Andy Markowitz, President – Specialty Metals.
Shaw Stainless & Alloy, based in Marietta, Georgia, is a full-line distributor of stainless steel sheet, pipe, square tube, rectangular tube, round bar, square bar and angles. The Company offers numerous value-added fabrication processes and markets several metal-intensive manufactured products, including bollards, wastewater treatment systems, fabricated pipes, railings, platforms and stairs. In 2020, Shaw Stainless & Alloy generated approximately $15 million in sales and on track to exceed $20 million in sales in 2021.
“Continuing the safe, profitable and sustainable growth of our specialty metals business is an important part of our strategy. Shaw Stainless & Alloy is a well-run organization with a well-established reputation that will immediately contribute to our growth, said Richard T. Marabito, Chief Executive Officer. “Shaw brings similar values and a focus on safety, which aligns well with Olympic Steel’s culture. We expect a seamless transition and look forward to welcoming the Shaw team and their wealth of expertise our Company.”
“Shaw Stainless & Alloy will expand our specialty metals footprint and make additional products and processing capabilities available to our customers. The acquisition will also continue our growth into metal-intensive branded products, building on the success we’ve experienced with both our Wright® self-dumping hopper and EZ-Dumper® truck insert lines,” said Andrew Greiff, President and Chief Operating Officer. “The addition of the Shaw businesses to our portfolio furthers our growth and our efforts to reduce cyclicality and the impact of market volatility. As with our previous acquisitions, we expect to realize a number of commercial synergies, which will support our efforts to produce consistently stronger earnings.”
Shaw Stainless & Alloy, which opened in 1979, operates approximately 120,000 square feet of warehouse space across six facilities in Powder Springs, Hiram, Marietta and Albany, Georgia and Denver Colorado Sales Office.
Shaw Stainless & Alloy will continue to operate under its established brand as an Olympic Steel Company, led by the existing management team, including Bryan Shaw, President of Shaw Stainless & Alloy.
Forward-Looking Statements
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "anticipate," "should," "intend," "expect," "believe," "estimate," "project," "plan," "potential," and "continue," as well as the negative of these terms or similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to successfully close the Shaw Stainless & Alloy acquisition, our ability to successfully integrate Shaw Stainless & Alloy into our business and risks inherent with the Shaw Stainless & Alloy acquisition in the achievement of expected results, including whether the acquisition will be accretive and within the expected timeframe. We undertake no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our reports on Forms 10-Q and 8-K.
About Olympic Steel
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel, aluminum, tin plate, and metal-intensive branded products. The Company’s CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricator of value-added parts and components. Headquartered in Cleveland, Ohio, Olympic Steel operates from 41 facilities in North America, inclusive of the seven new locations added as part of the Shaw Stainless & Alloy acquisition.
For additional information, please visit the company’s website at www.olysteel.com.
