Benzinga | Oct 1, 2021 09:40AM EDT

Olympic Steel Acquires Shaw Stainless & Alloy; Terms Not Disclosed

Transaction marks Company's fifth acquisition in past four years

Olympic Steel Inc. (NASDAQ:ZEUS), a leading national metals service center, today announced that it has acquired the assets of Shaw Stainless & Alloy, Inc. ("Shaw"). The all-cash purchase is immediately accretive. Terms were not disclosed.

The acquisition includes Shaw's stainless steel distribution and fabrication businesses as well as its architectural and barrier defense businesses. Shaw will be incorporated into Olympic Steel's specialty metals segment, led by Andy Markowitz, President -- Specialty Metals. The Shaw team will report to Zachary J. Siegal, Olympic Steel's Vice President -- Strategic Development.

"Continuing to acquire well-run, high-return businesses is a key element of our strategy," said Richard T. Marabito, Chief Executive Officer. "We are excited to quickly redeploy a portion of the proceeds from our recently announced sale of Detroit assets and operations. We expect higher-returning results from Shaw will replace the former Detroit earnings stream at a fraction of the investment. Shaw's dedication to safety, focus on exceptional customer service and strong company values align well with Olympic Steel's culture. We welcome the Shaw team and their wealth of expertise to Olympic Steel."

"Shaw expands our specialty metals footprint and our product and processing offerings to our customers," said Andrew Greiff, President and Chief Operating Officer. "The acquisition also continues our strategic growth into metal-intensive end-use products, building on the success we have experienced with both our Wright(r) self-dumping hoppers and EZ-Dumper(r) truck inserts. As with our previous acquisitions, we expect to realize commercial synergies that will advance our efforts to produce consistently stronger earnings and shareholder returns."

Shaw, based in Powder Springs, Georgia, is a full-line distributor of stainless steel sheet, pipe, tube, bar and angles. The company also manufactures and distributes stainless steel bollards and water treatment systems. Founded in 1979, Shaw operates approximately 120,000 square feet of warehouse and fabrication space in Marietta, Hiram, Powder Springs and Albany, Georgia. It will continue to operate as Shaw Stainless & Alloy, an Olympic Steel company, led by its existing management team, including President Bryan Shaw.

Shaw offers numerous value-added fabrication processes, including: custom machining; electropolishing and passivation; laser, gas, plasma, waterjet, miter, saw and mechanical torch cutting; steel beveling; precision welding; metal forming; pipe threading; cut and roll grooving; painting; galvanizing; stainless steel polishing; flange attachment; coating, wrapping and lining; pickling, oiling and degreasing; and a range of product finishing and quality assurance testing.