Aug 4 2006
Esmark Incorporated has announced that it has acquired Cleveland, Ohio-based Independent Steel Company, a privately held processor and distributor of value-added steel products, for $21 million in cash.
In making the announcement, Esmark Chairman and Chief Executive Officer James P. Bouchard said, "The acquisition of Independent Steel demonstrates Esmark's commitment to growth and investment in the Ohio Valley. This is another important strategic step towards completing our downstream-growth platform between the Pittsburgh-Chicago growth corridor."
Celebrating its 50th year in business, Independent Steel has annual revenues of more than $60 million and serves the construction, tubing manufacturers, consumer products and transportation industries with a range of low carbon cold rolled and galvanized painted steel applications and products. Independent Steel's service region includes Ohio, Pennsylvania, Michigan, Indiana and New York State.
Under terms of the acquisition, Dave Nix, President of Independent Steel, will remain in that capacity and also become an officer of Esmark. In addition, Vice President and Chief Operating Officer, Mark Schwertner, also will remain in his current capacity.
Commenting on the acquisition, Independent Steel's Mr. Nix said, "We're truly excited to become part of the Esmark family. We are joining one of the best capitalized and strategically positioned companies in the industry today. This transaction is welcomed by our employees, the United Steel Workers, and our customers who will benefit from the substantial resources Esmark can bring to the Midwest and the Ohio Valley markets."
Bouchard noted that with the acquisition of Independent Steel, annual revenues for the Esmark Steel Services family of companies now exceed $625 million. "Since our founding in 2003, our strategy has been solely focused on setting new industry standards in inventory management, procurement, operational efficiency. We believe our growth in revenue and profitability is a validation that our strategy is working. We remain debt-free and expect Independent Steel to enhance Esmark's cash flow as it approaches a proposed merger with Wheeling Pittsburgh Steel Corporation later this year."
http://www.esmark.com