Downtown Los Angeles-based metals service provider Reliance Steel & Aluminum Co. said it has agreed to buy Tubular Steel Inc. of St. Louis, which processes and distributes metal pipe, tubing and bars. The transaction amount was not disclosed.
Tubular has eight locations in the United States and its purchase will allow Reliance to expand its product offerings and diversify its customer base, Reliance said. Tubular’s 2014 revenue was about $200 million, according to Reliance. The deal should be closed in early 2016, pending regulatory approval and other closing conditions.
Reliance owns at least 300 metal services centers as part of a business model that has made it the largest metals processor and distributor in the country. The purchase of Tubular is the first for the company in 2015 after buying three businesses in 2014.
Reliance’s stock on Tuesday went up $1.14, or less than 2 percent, to close at $59.95.
For reprint and licensing requests for this article, CLICK HERE.