Reliance Steel & Aluminum Co. said that it will acquire substantially all of the assets of Worthington Steel Vonore, a Tennessee processing facility owned by Worthington Industries Inc.
The Los Angeles metals processing company on Monday said that the Vonore “tolling” plant, which processes and delivers carbon steel, aluminum and stainless steel products, will operate as a unit of its Precision Strip Inc. subsidiary. Precision Strip has 11 plants in the United States and Mexico that operate on a "toll" basis, which means that they process metals for a fee without taking ownership.
“This acquisition will strengthen our geographic fit for our existing and growing customer base and also complements the footprint of our existing facilities, further expanding our market presence in the Southeastern region of the United States,” said Precision Strip President Joseph P. Wolf in a statement.
The deal, terms of which were not announced, is expected to close within 30 days.
Reliance shares closed up 54 cents, or 1 percent, to $56.43 on the Nasdaq.