Ryerson Holding Corporation, a value-added processor and distributor of industrial metals, and Olympic Steel, Inc., a U.S. metals service center, announced that they have entered into a definitive agreement to merge. The merger will enhance the combined company’s presence as the second-largest North American metals service center and will bring Olympic Steel’s complementary footprint, tempering capabilities, and heat treated product offerings into Ryerson’s network of value-added service centers.
The deal is expected to generate approximately $120 million in annual synergies by the end of year two via procurement scale, efficiency gains, commercial enhancement, and network optimization. The merger adds Olympic Steel’s thermal processing services and metals to Ryerson’s existing offerings.
As part of the transaction, Michael D. Siegal, executive chairman of Olympic Steel’s Board of Directors, will be appointed chairman of the Board of Directors (“Board”) of the combined company and Olympic Steel will also appoint three other directors to the combined 11-member Board. Eddie Lehner, president and chief executive officer (“CEO”) of Ryerson, will serve as CEO of the combined company, with Richard T. Marabito, CEO of Olympic Steel, serving as president and chief operating officer.
Eddie Lehner said, “This merger represents an immensely attractive and unique opportunity for Ryerson and Olympic Steel as it combines our two organizations, which couldn’t be more complementary and synergistic around the products, services, footprint, and customer experience…The combination of our organizations will further scale the digital investments that Ryerson has made to bring Olympic Steel’s capabilities and formidable expertise into a larger network and provide our customers with greater network density, faster lead times, and a wider array of custom solutions from pick-pack-and-ship to finished parts…I look forward to working with Rick and the entire Olympic Steel organization with shared mission, passion, and purpose to unite our teams in reaching our vast potential together.”
“We are very excited about the combination of Ryerson and Olympic Steel and the trajectory of the business going forward,” added Steve Larson, chairman of Ryerson’s Board. “We look forward to welcoming Michael and the additional Olympic directors to the already strong Ryerson board. They bring a wealth of experience and perspective.”
Michael Siegal added, “This is a significant milestone for the business my father and uncle started more than 70 years ago. We went from private to public in 1994, and now we enthusiastically take this next step to accelerate Olympic Steel’s continued growth.”
Press release is available in its original form here.
