Reliance Steel Buys Infra-Metals

August 19, 2008 · Filed Under Reliance Steel & Alum 
Visited 38 times, 1 so far today

Reliance Steel & Aluminum Company completed an agreement to acquire the outstanding stock of PNA Group Holding Corporation. The PNA Group includes Infra-Metals.
Infra-Metals has announced plans to build a multi-million dollar facility in New Boston.
Infra-Metals has six facilities across the country. In late 2007 the Infra-Metals board of directors approved the New Boston site as its seventh location.

“When they visited the proposed New Boston site, they liked the amount of land we had to offer. When they saw the boat dock that came with the property they really liked the land. We felt good when we met with their company officials the day they were in Portsmouth,” Michael Sturgill, Village of New Boston administrator and Community Development Director said.

In December of 2007 the company was awarded by the Ohio Tax Credit Authority a 50 percent credit for an eight year term to establish operations. The estimated value of the tax credit is $210,530 over the term.

One of the stipulations of the agreement between the state and the company is that they maintain operations at the site for 16 years.

The Reliance Steel & Aluminum transaction is valued at $1.1 Billion.

Reliance Steel has obtained PNA’s assets including the operating entities Delta Steel LP, Feralloy Corporation, Infra-Metals Co., Metals Supply Company, Ltd., Precision Flamecutting and Steel, LP and Sugar Steel Corporation.

First quarter revenues for PNA were $74 million with a revenue of $1.6 billion in 2007.

“We are very pleased to have completed this acquisition. PNA is a strong fit for Reliance’s coutinued growth strategy as it complements our existing business, adds new products in new areas, and enhances our product , geographic and customer diversification which have been key factors in our success,” David Hannah, Chairman and Cheif Executive Officer said in a released statement.

They further explain that through a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the united Kingdom, the company provides value-added metals processing services and distributes a line of over 100,000 metal products.

According to information on www.rsac.com (Reliance Steel’s Web site), the company entered into a new $500 million senior unsecured term loan on July 31, 2008. The proceeds were used to fund the purchase of PNA, including the repayment of PNA’s debt.

Officials close to the negotiations says the plans for the New Boston facility have been included in the written purchase agreement. It’s still unclear when the New Boston project will begin, but is still on track to be completed.

Reliance Steel & Aluminum is also the owner Chatham Steel, which last week announced they would be building a $7.5 million dollar facility in Hanging Rock which is expected to bring 50 to 60 new jobs to the area. products in new areas, and enhances our product , geographic and customer diversification which have been key factors in our success,” David Hannah, Chairman and Cheif Executive Officer said in a released statement.

They further explain that through a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the united Kingdom, the company provides value-added metals processing services and distributes a line of over 100,000 metal products.
Source: communitycommon.com

Tags: ,

Related News

  • Reliance Steel’s ratings put on review for possible downgrade - Moody’s
  • RS: Reliance Steel, Reliable Cash Flows
  • Reliance Steel & Aluminum Co. Declares 2008 Second Quarter …

    • Comments

    Leave a Reply