Reliance Steel Makes Texas AcquisitionWednesday, October 3, 2012
Reliance Steel & Aluminum Co. on Wednesday said that it has acquired oil and gas industry supplier Sunbelt Steel Texas LLC for an undisclosed amount.
Sunbelt, based in Houston, distributes alloy steel bar, heavy-wall tubing and similar products. Los Angeles-based Alliance, which is the largest metals service center company in North America, said the deal will help it serve a wider variety of energy industry customers.
"Sunbelt increases our growing exposure to the energy market in high end, niche products serving customers across multiple oil and gas well drilling types," Chief Executive David Hannah said in a statement.
Terms of the transaction were not disclosed. Sunbelt, which was privately held, had net sales of $48 million last year. The company will operate under the current management as a wholly-owned subsidiary of Reliance.
Shares closed down 49 cents, or 1 percent, to $51.10 on the Nasdaq.