SDI Expands Downstream Operations Through US$134M Deal
In a statement, SDI said it is taking a 75% equity stake in the business, which specializes in supplying painted Galvalume for the building industry.
“United Steel Supply provides an exciting opportunity to expand our painted Galvalume value chain by affording us with a better opportunity to provide our high-quality flat roll steel directly to this important market segment," said Steel Dynamics president and chief executive Mark Millett.
"United Steel Supply has a reputation for best-in-class service, short supply lead-times and strong customer relationships. We believe this partnership will provide a strong cultural fit with Steel Dynamics,” he said.
Based in Texas, United Steel has four distribution centers in Mississippi, Indiana, Arkansas, and Oregon, and employs 38 people. It serves regional roll-formers in the roofing and siding sector.
Steel Dynamics said the acquisition will add a complementary distribution channel for its coated sheet and “connects it to a rapidly growing industry segment with customers that do not traditionally purchase steel directly from a steel producer.”
Steel Supply is an SDI customer and buys sheet from the company’s flat-rolled mills in Columbus, Miss., and Butler, Ind. Steel Supply owners Bret Curtis and Will Waldrip will remain with the business in their current roles as president and vice president.
SDI has an option to purchase the remaining 25% equity interest of United Steel Supply in the future.